How to deal with commercial debt

If you offer credit as a normal part of running your business, you are open to commercial debt that you may need to recover through the courts. Using the courts to obtain payment for a commercial debt should be your last resort. Often the threat of legal action is enough to have your commercial debt paid. A business solicitor can draw up an official letter that you can send to the company or individual that owes you the money.

When solicitor’s letters have not been successful, you can then use the courts to recover all or part of your commercial debt. To do this you use the small claims court if your commercial debt is less than £5,000. The small claims court is a special court within your local county court. If your commercial debt is over £5,000 you will need to use either the fast-track process for a commercial debts up to £25,000; or the multi-track process for a commercial debt over £25,000.

In all cases the person or business that has the commercial debt with you can contest the claim you are making. If they do, the services of a business solicitor will be useful as they can represent you at every stage of the court proceedings. In some cases, a commercial debt can be a complex case to navigate. Using a solicitor that has experience of the small claims process will be invaluable. Their services will ensure you get all or most of the commercial debt that is owed to you.

If you would like to obtain legal advice about commercial debts, Contact Law can put you in touch with a local specialist business solicitor free of charge. So, if you have any questions or would like our help in finding local business solicitors please call us on 0800 1777 162 or complete the web-form above.