Commercial Debt Recovery

When your business is owed money, taking swift and decisive action is crucial. At Legal Recoveries, we specialise in commercial debt recovery, helping businesses reclaim unpaid debts through professional and effective debt recovery services. Whether you’re dealing with small business debt recovery or large-scale commercial debt, our experienced team is here to support you.

Commercial Debt Recovery Solutions

Our commercial debt recovery solutions are designed to recover outstanding debts efficiently while maintaining professional relationships. We work closely with businesses to ensure that all available legal avenues are explored, including:

  • Letters Before Action (LBA) – A formal letter demanding payment within a set timeframe.
  • Interest and Compensation Claims – Claiming statutory or contractual interest and compensation as per the Late Payment legislation.

Court Proceedings – If necessary, issuing legal claims to recover the debt.

Commercial Debt Recovery Process

We provide a straightforward and transparent debt recovery process:

  1. Assessment of the debt – Reviewing contracts and agreements to establish your legal position.
  2. Pre-litigation action – Sending Letters Before Action and negotiating with the debtor.
  3. Legal proceedings – If required, taking the debtor to court.
  4. Judgment and enforcement – Enforcing judgments through various legal means, including High Court Enforcement and Charging Orders.

Business Debt Recovery

Unpaid debts can have a significant impact on your business’s cash flow. Our business debt recovery services ensure that businesses of all sizes can reclaim outstanding funds without unnecessary stress. We act swiftly to ensure minimal disruption to your operations, handling everything from initial contact with the debtor to legal enforcement if necessary.

Commercial Debt Recovery Case Study: £180K Recovered in 42 Days

When a national wholesaler faced £180,000 in overdue invoices from a key retailer, our Commercial Debt Recovery team stepped in. We began with a 48-hour trace to confirm trading status, issued a Letter Before Action the same week and negotiated a short-term repayment plan backed by a personal guarantee. When promised funds failed to land, we escalated to a County Court Judgment and transferred enforcement to High Court officers. Within six weeks the debtor cleared the balance plus statutory interest and our client recovered 100 % of legal costs.

Results at a glance

• £180K principal + £6K interest + £2K costs recovered

• Full payment secured 42 days after instruction

• Client retained trading relationship on revised terms

 

This outcome shows how fast, decisive action—combined with transparent updates in Debt Manager—turns aged commercial debt into working capital without lengthy court battles. If you have high-value B2B accounts dragging past due, talk to us about a tailored Commercial Debt Recovery strategy that protects cash flow and preserves business relationships.

What is a Collection Agency in B2B?

In the commercial world, a collection agency acts as an extension of your credit-control team, applying solicitor-backed pressure to secure unpaid invoices between businesses. Engaging an agency frees your staff to focus on core operations, reduces Days Sales Outstanding (DSO) and preserves vital trading relationships through professional mediation.

Debt Value

  • Up to £999.99
  • £1,000 – £9,999.99
  • £10,000 or more

Late Payment Claimable Charges

  • £40
  • £70
  • £100

Small Business Debt Recovery

For small businesses, unpaid invoices can be particularly damaging. Our small business debt recovery service is designed to assist SMEs in recovering debts efficiently, ensuring that your business remains financially stable. We offer tailored solutions to meet the unique challenges faced by small businesses in debt recovery cases.

Business Debt Help

If your business is struggling to collect overdue payments, business debt help from our experts can provide the guidance and legal support needed. Our team can advise you on the best strategies for debt recovery, ensuring compliance with relevant laws and regulations.

Late Payment Legislation

Under UK Late Payment legislation, businesses have the right to claim:

  • Interest on overdue invoices.
  • Compensation fees based on the amount owed:
    • Up to £999.99: £40
    • £1,000 – £9,999.99: £70
    • £10,000 or more: £100
  • Reasonable debt recovery costs where applicable.

We ensure that you receive all entitled payments under this legislation, providing clear advice on your legal options.

We use the quicker Claims Productions Centre to issue claims through the County Court. We can handle any of your defended matters up to and including a final hearing. The work is supervised by Rachael Ward, our COLP lawyer (Compliance Officer for Legal Practice).

Debt Recovery Services

Our debt recovery services include:

  • Letter Before Action (LBA) – Encouraging prompt payment from debtors.
  • Legal Claims and Court Action – If necessary, pursuing the case through the courts.
  • Judgment and Enforcement – Ensuring that debts are recovered using legal enforcement methods, such as:
    • High Court Enforcement Agents.
    • Charging Orders.
    • Attachment of Earnings Orders.
    • Insolvency proceedings, including Statutory Demands and Winding-Up Petitions.

Asset Trace Report

During the collections process we can obtain a Mini or full Asset Trace Report about your customer which would provide us with information that we can use to determine the most appropriate action to take. The reports are in-depth and include associated addresses, insolvency details, legal proceedings, target company/business research, active directorships, dissolved directorships, overseas directorships, non-limited company research, shareholdings, and land registry searches.

From the start of our relationship, we will:

  • Save you time and valuable resources in the collection of money owed.
  • Devise strategies to maximise recovery of your debts.
  • Provide you with continued support. advice and assistance throughout the debt recovery process.
  • Ensure that your reputation is always protected by always acting in a professional, compliant, and ethical manner.
  • Provide you with Debt Manager access to enable you to keep updated as to the progress of your cases.
Get in touch

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Featured Customer Reviews

Nottingham City Council

I have had the pleasure of working with Legal Recoveries and Collections (LRC) for several years across various industries. Throughout our partnership, LRC has consistently demonstrated a deep knowledge of the market and provided strategic insights that have been invaluable to our business. Their excellent communication and commitment to delivering on promises have always stood out. LRC’s proactive approach, engaging early and adapting as needed, ensures that we are always prepared and supported. Their partnership style not only delivers the best results for our business but also enhances the experience for our customers.

Credit Control Manager – Leading International Law firm

“LRC provide a professional and efficient service, delivering regular updates and effective solutions”

International Credit Insurance Client

We have been utilising the legal review services of Legal Recoveries and Collections (LRC) for the past few years, and we couldn’t be more satisfied. Their reviews are consistently thorough and informative, becoming an essential part of our pre-legal processes. This has significantly helped improve our recovery rates and reduced overall legal costs. The team at LRC are also very easy to work with and always available to provide professional advice when needed. We highly recommend their services.

North East Ambulance Service

As an NHS ambulance Trust, we don’t have in-house debt collection specialists, so find it difficult to pursue monies outstanding once our usual follow up process runs its course. LRC was recommended to us by another local NHS Trust and we approached them to find out what they could offer. We have been using LRC for nearly 3 years now and have not been disappointed. Our collection rate is circa 70% which represents a significant sum of money that is coming back into the NHS for patient care.

The team are very knowledgeable on the best route to recovery but will also advise when its just not financially viable to pursue a debt any longer. We have regular updates and meetings with Andrea the client services manager so everything is kept on track. It’s always our decision but LRC give us the best tools to make the right one.

London Metropolitan University

We have worked with Legal Recoveries and Collections for a number of years now and they have provided an outstanding service to us. We have worked closely with the team and have a good working relationship with both Rachel and Andrea. Their online portal is very user friendly. They have collected both pre-legal and post legal debts for us to a high standard and we would recommend their services to anyone considering using them going forward.

Utilita Energy Limited

We contacted LRC when we wanted to strengthen our collections processes and recover debt after we had exhausted our internal processes attempting to collect. From the off, LRC offered exceptional advice and support and helped us shape the way in which we approach collections. The team at LRC have a wealth of knowledge and experience which has enabled them to collect a significant amount of money on our behalf and through their professional approach have helped to change customer behaviour in many cases from infrequent to regular payers. LRC have tailored their collections activities to meet our needs and regularly make suggestions to make sure we spend our money wisely to ensure maximum return from their services . We are currently working with LRC to create a bespoke training package that they will deliver to staff across the business who manage and recover debt. I would not hesitate to recommend LRC for debt recovery.

Commercial Debt Recovery FAQs

What is commercial debt recovery and why is it important for my business?

Commercial debt recovery is the process of pursuing payment of overdue invoices or debts owed by other businesses. Timely recovery of these debts is vital to maintaining healthy cash flow, ensuring business operations continue smoothly, and avoiding financial strain. Efficient commercial debt recovery helps you minimise losses, protect profit margins, and reduce the risk of insolvency by recovering funds as soon as they become overdue.

What steps are involved in a typical commercial debt recovery process?

The commercial debt recovery process usually starts with sending invoices and payment reminders. If payment is not received, further steps include issuing Letters Before Action or formal payment demands. Should these fail, legal proceedings may be initiated through County Courts to obtain a County Court Judgment (CCJ). Enforcement action such as bailiff visits, attachment of earnings, or charging orders may follow to recover the debt.

How long do businesses have to pay commercial invoices in the UK?

By law, commercial invoices are generally expected to be paid within 30 days unless otherwise agreed. However, payment terms can vary by contract, with some agreements allowing up to 60 days or longer. It is important for businesses to clearly specify payment terms in contracts and monitor payment dates to act quickly when debts become overdue.

Can I charge interest and compensation on late commercial payments?

Yes, under the UK Late Payment of Commercial Debts (Interest) Act 1998, creditors have the right to charge statutory interest on late payments and claim fixed sums as compensation for debt recovery costs. The amount you can claim depends on the size of the debt and includes fixed fees ranging from £40 to £100 for debts up to £1,000 and above.

How do I claim late payment interest and compensation?

You can claim interest and compensation by issuing formal communication to the debtor detailing the amount owed, interest accrued, and compensation fees. Including these charges in a Letter Before Action strengthens your claim. If the debt remains unpaid, these amounts can be added to court claims and recovered alongside the principal debt.

What information do I need to provide to start commercial debt recovery?

You should supply comprehensive documentation including copies of unpaid invoices, contracts, delivery notes, statements of account, and records of previous payment reminders or correspondence with the debtor. Accurate details about the debtor’s legal name, registered address, and contact information expedite the recovery process.

What are the typical costs involved in commercial debt recovery?

Costs vary depending on the stage and complexity of recovery efforts, including fees for legal letters, solicitor involvement, court fees, and enforcement charges. Many debt recovery agencies, including Legal Recoveries & Collections, offer competitive pricing structures aligned to the value and nature of the debt, with transparent upfront quotes to avoid hidden fees.

How long does commercial debt recovery usually take?

The length of recovery depends on factors like the debtor’s willingness to pay, the dispute status, and the complexity of the case. Many debts are paid during early communications, but formal legal processes and enforcement usually take weeks to months. Efficient debt recovery providers strive to minimise delays through proactive management.

What happens if the debtor disputes the debt?

If a debtor disputes the debt, the creditor may need to provide evidence supporting the claim, such as signed contracts or delivery confirmations. Negotiations or mediation can help resolve disputes without court involvement. If unresolved, disputes may be settled through formal court hearings where evidence is reviewed before a judgment is made.

Can Legal Recoveries & Collections help prevent future commercial debt issues?

Yes. Legal Recoveries & Collections offers credit control services, helping businesses establish clear credit policies, conduct credit checks on clients, and implement effective payment monitoring. This proactive approach reduces the risk of future bad debts and improves overall financial stability.

Get in Touch with Us

If you have any questions about our service or would like to discuss your matters with us in greater detail, please contact the Business Development Team on 0330 024 6342