If a client or customer stubbornly refuses to pay their debts, then you will have no option other than to take legal action but this will come with costs if you use a solicitor to work on a debt recovery case. Depending on your individual case, the following options may be available to you…
Paying an hourly rate
Paying solicitors by the hour is the most common way to fund cases. The downside is you will pay the fees even if the case is unsuccessful.
Paying a fixed fee
This again is payable whether or not a case is successful and involves a fixed payment to the solicitor to work on your case. This option will at least put a cap on the amount you will need to pay and give you a clearer idea of whether the case is worth pursuing.
Conditional fees
This route offers less in the way of risk because it is payable only if your claim is a success. The downside is if you win the case then the amount taken in fees from what you receive is high and will include a ‘success fee’.
If you are facing problems with debt recovery for your business contact our team today.