More than commercial debt recovery
The power of teamwork
By Michael Richards – Associate
When it comes to paying overdue invoices, some people will go to great lengths to hide money and avoid paying. If you are a business owner struggling to get paid what you are due, read on. Recently, close teamwork between our specialists has led to successfully recovering a £90k invoice for a client.
The story began when we were approached by a new client who had tried everything to recover the money and faced a brick wall from the construction company who owed their business money.
Our client had been repeatedly been promised payment, only to have the payment days slip by time after time.
Where to start with recovering the money owed?
We take pride in being able to improve cash flow for clients – which sometimes requires detective work to uncover the facts. In this case our commercial debt recovery experts worked closely with our litigation experts. Here are the 5 steps our team took to recover our client’s money:
- We needed to understand our client’s business and the background to the construction project that led to the sizable sum owed.
- We reviewed the fine details in the contract documents, and as we were certain who the contracting party was, we issued our Letter Before Claim to the respondent.
- The following day the respondent agreed to pay in full.
- This agreement was then changed to an instalment proposal. While we were able agree repayment terms, a settlement agreement was drafted.
- We submitted a settlement agreement to the respondent, and a signed PDF was returned. This is where the process began to get interesting. Our specialists uncovered anomalies: the respondent had been changed, removing the contracting party entirely and replacing with a Special Purpose Vehicle (SVP).
Commercial debt recovery detectives!
Immediately we raised concerns with our client. We explained what had happened and provided them with the necessary advice and direction they needed to move forward.
The settlement agreement was reinstated and payment terms were agreed, meaning that our client was on track to achieve the outcome they were looking for, without jumping over even more hurdles getting in their way.
What made this outcome sweeter for our client was that the other side paid the costs.
Our experience and determination led to the perfect result our client wanted all along – to get paid the sizable amount of money they were owed! Our client is delighted, thanking both Mike Richards and Sehar Hussain; by aligning our commercial debt recoveries and litigation teams, their close teamwork got this deal over the line as quickly as possible.