Insolvency
Stat Ds and undisputed, but overdue invoices
Issuing a Statutory Demand (or Stat D) is an effective way to encourage prompt payment of overdue invoices and debts, but it’s not the only method. A Stat D is a formal document requesting payment of an outstanding debt within 21 days. By issuing one, you give creditors another 3 weeks to pay a debt…
Read MoreStatutory Demand vs Pre-action letter
Pre-action letters and Statutory Demands (also known as Stat Ds) are useful tools for chasing longstanding and undisputed debts. But how do they differ? Firstly, the names of the participants involved. Whoever issues the Statutory Demand is an ‘applicant,’ but the sender of pre-action letter is a ‘claimant’. Likewise, the recipient of Stat D is…
Read MoreWhy winding up petitions are more efficient than county courts
We recently spoke with a client who for the previous three months had been chasing a customer with an outstanding invoice of just over £50,000. The client was considering litigation in the county court to retrieve the money and I suggested that a quicker and more cost-effective route might be to issue a winding-up petition.…
Read MoreHow should builders and tradesmen collect overdue debts?
According to figures released by the Office of National Statistics, the building and construction industry contracted 1.9% in the third quarter of 2015, which suggests contractors will be tightening their belts this year as the market becomes more competitive. This is particularly bad news for roofers, plumbers and other subcontractors (‘subbies’). Why? Because in a…
Read MoreConstruction sector suffers the most as UK SME’s are owed £67bn in unpaid invoices.
According to a report published by the ABFA (Assets Based Finance Association) the UK SME’s are owed over £67.4billion in unpaid invoices. This figure which is up 8% from last year and a huge 36% from 2011 is considered conservative as it was taken from only 180,000 SME’s across the country who have submitted detailed annual accounts.…
Read MoreSmall Business Commissioner to help firms recover billions of pounds from late payments
The government is planning a big shake up in the world of small business debt. Anna Soulby (Minister of Small Business Enterprise) has announced that she is opening a new role in her cabinet for a Small Business Commissioner, whose main responsibility would be to bring about reform in the way large businesses have historically…
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