Why is the money outstanding?
Your customer or business may:
If you are owed money by a limited company you can also check their status with Companies House. You can do this online for free.
Companies House will show whether the limited company has entered into any formal insolvency, or has been dissolved. If you are unsure what this means contact us for advice.
Late payment interest
Your contract may say that you can add extra charges for late payment. If you are owed money by another business you can add late payment interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.
You can choose to do this instead of making charges under the terms of your contract. Contact us for advice.
Debt recovery options
It is important to check how much you are owed, and that you have sent out invoices for the amount due.
You can then:
- send a reminder letter;
- get a solicitor to send a reminder letter;
- use a debt collection agency to ask for payment (they can ask for payment and sometimes also offer tracing services);
- use mediation (this is where an impartial trained mediator acts like a referee in a dispute); or
- ask the court for a County Court Judgment.
It is important to remember that there is no guarantee that you will be paid with any of these options. You will need to weigh up whether you can afford, or are willing to pay the extra costs needed.