Whether you are a director of a multinational company or an individual sole trader, there are two things you probably have in common: golf and chasing unpaid invoices. Both are equally frustrating and completing them can be painstaking.
Much like slicing your “usually fine” driver onto the wrong fairway, recovering money from invoices that have been unpaid can be difficult and is often a sensitive issue. It is important to strike a balance between finding that sweet spot in the middle of the club face and maintaining your business relations.
Unlike being on a par 4 and on the green for 2 and then 3 putting, recovering your outstanding debts need not be so demoralising.
There are various options for you to consider. Firstly, if the debt is undisputed and over £750 for companies and £5,000 in aggregate for individuals, you can serve a statutory demand on the debtor.
A statutory demand permits the debtor 21 days to make the payment. Should they fail to pay or communicate any resistance to the demand, you can petition to the court for a winding-up order or bankruptcy order. Some may even argue, this is a more simple process than trying to get round 18 holes unscathed and without ending up in the bunkers! This being said, issuing a winding-up petition or bankruptcy order makes being a member of a club such as Wentworth look good value.
Now, should you anticipate that the debt could be disputed and arguments around the amount payable may arise, similar to the conversations we have all had around the hole on whether to allow that 3ft “gimmie putt”, then you will need to issue a pre-action letter as the first step in recovering the debt via the County Court.
Once the pre-action letter has expired, essentially you have reached the halfway house. Your options are to continue round the back 9 holes or to head back to the clubhouse for that cold pint that is waiting for you. The risk with completing the back 9 as well is that your score could get worse (and no one likes to see those triple bogies on the scorecard); however, you could also par, birdie, or dare I say it, eagle the remaining holes. Once the pre-action letter has expired, if you proceed with issuing a claim against a debtor in the courts, this is not without its perils. You will need to factor in legal costs, settlement discussions, witness statements and adverse cost orders should you not be successful. As we all know, we might have a few good holes but there is always one where you just cannot get out the rough.
Whilst we cannot help you with your golf swing, we can help you recover your unpaid invoices. Look to us as your club pro who doesn’t necessarily have the answers you want but does have the answers you need.
Please do get in touch with WansbroughsLLP and speak with a member of the Dispute Resolution Team.
01380 733300
disputes@wansbroughs.com
wansbroughs.com
Wansbroughs is the trading name of Wansbroughs LLP (registered number OC443305), which is authorised and regulated by the Solicitors Regulation Authority (SRA 8001430). Wansbroughs LLP is registered in England and Wales and its registered office is Northgate House, Northgate Street, Devizes, Wiltshire SN10 1JX.