Since lockdown began on 23 March, none of Scotland’s 39 sheriff courts have been processing debt recovery actions. So, what do I mean when I say that we’re "back in business"? Well, as we have been telling our clients, we’ve always been open to guiding you and suggesting the best solutions during the pandemic. Our unswerving advice has been that if we initiated recovery actions during the lockdown, they would be dealt with on a "first come, first served basis" once the courts re-open. Many of our clients have taken this advice and, indeed, the Scottish Courts and Tribunal Service (SCTS) has confirmed that this is how they will be dealt with.
In this live webinar, broadcast on Tuesday 26 May 2020, Managing Director of Yuill + Kyle, Stephen Cowan, looks at how businesses can manage their credit control during this period of lockdown and beyond.
Stephen Cowan will be presenting an online training session with Central Law Training on the topic of 'Extracting Payment from Unwilling Debtors' on Thursday 21 May 2020.
When I give a presentation about legal recoveries, I usually start it by describing the various steps which a credit controller should take before referring an outstanding debt to their lawyer. Essentially, my recommendation is that the controller exhaust their own collection activity before passing the debt to us. Of course, what this will involve entirely depends upon that organisation’s individual credit control policy.
It’s never easy to ask your customers for payment during these difficult times. However, I hope you will find my top ten tips helpful in giving you some ideas how to approach this “thorny” issue. Let me know how you get on, and best of luck.
As probably all company directors know, they are not personally liable for their company’s debts – with some notable exceptions. The current health crisis is likely to mean that many limited companies are facing financial distress. So, it will be understandable that directors will attempt to avoid this problem by sourcing additional funding to tide their business over as well as negotiating extended payment terms from its existing lenders and creditors.
As we are now all aware, the Government has offered businesses a package of support during the current crisis. Packages include sick pay, business rates, tax and insurance as well as the Coronavirus Business Interruption Loan Scheme. Cynics amongst us say that the only aspect that these offerings have in common is that they are all difficult to access, along with the uncertainty as to precisely when any payments will be made.
COVID-19 is causing economic uncertainty across all areas of business and for individual families. Managing Director Stephen Cowan looks at the position on cash collection and what businesses should be aware of.
The Chartered Institute of Credit Management (CICM) is the world’s largest recognised professional body for the credit management community. As well as facilitating professional qualifications, the Institute’s members have access to a host of resources. For example, their “Knowledge Hub” covers such subjects as “credit risk” and “legal and compliance”, as well as “skills builder”.
The basic rule of jurisdiction is that an individual should be sued in the court where they reside, as opposed to the court where a pursuing creditor carries on business. The rationale for this is to protect “consumers” who are seen to be the commercially weaker party in the relationship.
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