With restrictions easing and government funding winding down many struggling businesses are urging creditors to work constructively with them to help accept mutually agreeable repayment arrangements rather than cease trading.
It has been well publicised that the COVID-19 Pandemic has been associated with causing significant disruption to businesses across the UK and further afield. It has seen previously thriving and profitable companies pushed into financial distress and hardship.
When to seek legal advice
Non-payment or delayed payment of debts has in part been facilitated by the unprecedented nature of many of the temporary relief measures mandated by the government, together with the urgency with which they were announced or introduced. In some circumstances, people have sought to take advantage of the confusion surrounding entitlements to these reliefs from the government and creditors alike.
While some leniency is expected for repayment times there is a line that can be blurred of when it is time to seek legal advice and taking a more robust approach to the recovery of money that is due.
If there is ever a question of a debtor’s abilities to make full payment, obtaining advice early on may reduce the risk of loss further down the line. While the government are currently providing enhanced aid to debtors, this is winding down and it is important to take into consideration you, as a creditor’s cash flow issues following non-payments and the lasting effects of COVID-19.
Unfortunately, many creditors have allowed debtors to run them along with false promises and offers below the value of the service provided. If you think that your business may be falling into this spiral, it is important to seek legal advice.
If there is an insolvency risk associated with a debtor, recovery possibilities can become slim to none. In this instance, the quicker you act the more likely you will get partial or full payment.
Bright Solicitors pride themselves on providing their clients with honest and cost-effective solutions and offer specially tailored retainer options for businesses so seeking the advice you need is simple.
If you have any questions then please contact us to find out more.