Client Refusing To Pay For Services UK

One of the most stressful things to deal with in business is the uncertainty of receiving payment for your goods and services. This is especially so for small businesses where late payments or no payments at all can have dramatic effects on the ability of the company to continue trading. In this article, client refusing to pay for services UK, we will take a look at the options open to you if you find yourself in this position.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you deal with clients when they refuse to pay, get in touch with us today. We will review your situation and discuss the process involved in a clear and approachable manner. Early expert legal assistance can help you avoid making mistakes, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

What are the steps to take?

Before resorting to court action, it is worth sending one more letter to your client. It should set out the details of the original payment agreement you had with them. The letter should clearly state that you will be taking them to Court and filing a claim against them for the amount due if they are unable to make payment within 14 days of the request issue date. Also state that they may well be liable for interest payments alongside court costs, potential legal costs and mention how unpleasant and stressful it can be going to court.

What should I do if I still don’t receive payment?

The option open to you will depend on the value of the outstanding amount.

For amounts less than £10,000:

Under these circumstances, it is possible for you to submit online a form called N1 which is for use in the small claims court. Keep a copy of the final letter you sent requesting payment and if the client fails to pay it within 14 days, this documentation will prove useful in court. If this payment request is not met, this will represent grounds to issue a winding-up petition to the courts or other enforcement procedure such as appointing bailiffs.

Small claims cases are set up in such a way that you do not need to instruct solicitors and can save legal fees by representing yourself.

For amounts totalling more than £5000:

If the client is refusing to pay an amount totalling more than £5000, one option is to serve a document called a Statutory Demand. This formal document requests payment of the amount due within 21 days. If this payment request is not met then you would have grounds to present a winding-up petition in Court.

The sending of a letter before action or a statutory demand may in some cases prompt your client into action and as such can be a cost-effective way of resolving the dispute without the need to go to court. If, however, this does not bring about the recovery of the sum owed, court action to recover the monies owed may need to be considered. In that event, it will be important to weigh up the pros and cons of going to court and establish the associated risks and potential costs before you decide to pursue this approach.

How we can help

We have a proven track record of dealing with and advising on debt recovery for businesses. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Commercial Litigation Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of reducing risk, saving you money and ensuring you achieve a positive outcome.

To speak to our Litigation solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Litigation, News Tagged as