Taking Your Client to Court Over Debts
Legal proceedings are not to be taken lightly and even more so when it comes to debt recovery and there are pros and cons to be considered when it comes to recovering the money a client owes you.
To put it bluntly, taking your client to court is pretty much guaranteed to destroy the relationship for good even if you do get the money owed. So the decision requires careful consideration and shouldn’t be part of a knee jerk reaction you might come to regret later. It also has to be considered how important your client is to the future of your business.
More and more businesses are now proceeding quickly down the route of court action even though they may not have made adequate preparations for what can be a hard road. There may not even be a guarantee that the debt will be repaid and often for debts of less than £500 a small business owner might consider legal action to be worth it when solicitor and court fees are factored in.
There is also the possibility the client will contest the amount owed and even come back with a counterclaim which will cost even more time and money to defend against.
It is far better in most cases to consult a debt recovery agency to handle debt recovery for you. In most cases matters can be resolved without a case going all the way to court.