Whilst the COVID-19 pandemic continues to present businesses with exceptional circumstances, our Debt Recovery team remain fully operational throughout this uncertain period. Our experts are well positioned to provide both our existing and new clients with the appropriate help, advice and guidance to create an effective debt recovery process during this time.
In light of the current climate, our experts are being frequently asked whether it is appropriate for a company to continue to collect their debts in the “normal” fashion.
It is likely to be the case that some businesses will be unable to repay their debts in full at this moment in time, but it is vital that companies take the necessary steps to shield their cash flow now, as opposed to further down the line. Companies should not be discouraged from acting as they usually would throughout the course of exercising their pre-action obligations. This can put you at the forefront of a potentially long list and result in a positive outcome.
Given that the majority of debts referred for legal intervention have been outstanding for quite some time already, and where internal credit control procedures have already been exhausted, the recovery of your company’s debts is an essential part of protecting your business and cash flow. A proactive approach now could prevent costly litigation in the future.
In cases of pre-existing repayment arrangements and being mindful of the approaches adopted by some financial providers, in respect of mortgages, rent, loan payments, the requests for payment breaks and/or lesser amounts of instalment payments, are entirely discretional and subject to financial viability. Acceptance of such offers would however demonstrate empathy and could encourage a debtor’s inclination to get repayment back on an even keel once the economy has stabilised.
It is worth noting that some companies may rely on “force majeure” to avoid making payments that they are contractually bound to make. Please see our related information on this subject – Will COVID-19 risk non-performance under contract?.
Details of our transparent and cost-effective debt recovery services can be seen here.