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12-Month-old debt recovered within 60 days in 3 instalments

The creditor, a Lancashire based specialist light precision engineering company, had issued two invoices totalling £3,370.00 to a Hertfordshire based portable power supplies manufacturing company on 30-day payment terms. The earliest of the invoices had become due for payment over 12 months ago. When chasing for payment, the creditor encountered a series of excuses and delaying tactics, including that payment was imminent. They would pay when they got paid. They were awaiting a large incoming payment, and they were now awaiting funding.

Upon instruction, we carried out initial research on the debtor. It quickly became clear that the company was long established with a good product offering and a decent credit rating. The company had no satisfied or unsatisfied County Court Judgments registered against it and a healthy balance sheet. Looking further into the company’s client base, which was made up mostly of customers in the Aerospace, Marine, Media and Entertainment industries, it was evident that the COVID-19 pandemic had severely impacted the company.  

We discussed our findings with our client and agreed that the debtor should be offered a short payment plan rather than continuing to demand full immediate payment. If they were unable or unwilling to agree to a plan, the matter should proceed to Court without further delay.

An amicable payment plan was agreed upon and adhered to

The debtor was receptive to the idea of paying off the debt in instalments. However, their initial proposal to pay in 12 monthly instalments was flatly rejected. Given the age of the debt and the fact that the debtor’s income streams were opening up with the easing of lockdown restrictions, a two-month deadline for full payment was imposed.

The debtor eventually agreed to settle the debt in three equal instalments, with an immediate payment and two further payments at 30-day intervals. We contacted the debtor before the payment date of each instalment to ensure the payments were made as agreed. They were, and our client received a same-day transfer following each payment, resulting in full payment including Advocate’s fees within 60 days.  

As you will see from our client’s kind review, they were pleased with our service and the outcome, full payment at no cost.

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