Contact our debt recovery specialists. Call 0141 331 2332
We are indeed indebted to Private Eye (no 1497) for drawing our attention to the latest Chinese concept for civil enforcement against defaulting debtors.
Late payments are a serious problem for Scottish and UK businesses. Research by accounting software company FreeAgent shows that two in five invoices issued by small companies were settled late in 2018. Free Agent used data from its 80,000-strong customer base to analyse late payment issues.
The Government have taken steps to tackle the late payment crisis, but there are a number of steps small businesses can take to mitigate the risk of late payment, which we have listed below.
The boss of the Association of British Insurers, Mark Shepherd, has said that the number of insurance claims made so far this year has reached its highest level in ten years. What has brought this on?
Small businesses are particularly at risk when it comes to unpaid debts. Even just a couple of late payments could put your business in a difficult situation, and as a result, it is essential that you take an active role in debt recovery. The process of debt recovery can be challenging and time-consuming, but unfortunately, for small businesses, a vital part of succeeding. While larger companies can afford to swallow losses, SMEs often simply do not have the money to ensure proper cash flow while carrying even smaller amounts of unpaid debt.
What is Phoenixing?
Consider the following scenario:
Joe Lollipop Limited has been trading for a number of years from 5 Glebe Street, Glasgow. This is also the company’s registered office.
A new report published by KPMG shows that one-in-ten Scottish firms show "zombie-like symptoms". But what does this mean and are 'zombie' firms a risk to other businesses?
The recent study by KPMG showed that 9% of the 1100 firms analysed in Scotland were under financial pressure. These so-called zombie firms suffered several difficulties, including static turnover, a decline in turnover, tight margins, limited ability to invest and high levels of debt. This figure was the highest of all UK nations.
Debt Advisory charity, StepChange has informed of the alarming number of Scots facing problem debts.
The charity helped 30,000 people in Scotland who were having difficulty with financial issues. Of that number, 46% were having problems with council tax arrears.
The report produced by the charity ‘Scotland in the Red’ highlighted that the cost of problem debt to the public was around £750million.
The issue of late payments is having a severe impact on UK businesses, with a recent estimate by QuickBooks highlighting that one-in-seven firms have been unable to pay their employees on time as a result of cash flow issues.
Some businesses have even had to turn down projects as a result of being unable to pay staff members to carry out the work, suffering a loss of around £26,000 on average.
New data has revealed that more than 1000 businesses went bust in 2018 while they waited to be paid by clients or customers. This startling data from Begbie Traynor highlights the importance of debt recovery to the success of small business and the massive problem of late payment in the UK.
Stephen Cowan looks at summary warrants and the powers and effects they can have.
Testimonials
Yuill + Kyle are an extremely focused firm who are achieving great results for us north of the border. Their client-focused staff keep us 'in the loop' so we are able to make timely decisions, helping us to recover more of our money.
I would not hesitate to recommend Yuill + Kyle's services to other business colleagues. I recently sent Yuill + Kyle's pre-sue letter to 2 debtors. Within 2 days of Yuill + Kyle sending these letters one of the debtors paid his £560 and the other his £750, all for the fee of a 7 day letter!
I instructed Yuill & Kyle to send a pre-sue letter to my debtor. This resulted in the debtor paying their outstanding £2750. We also received a letter of apology from them!! Great result!!
I have to say that Yuill + Kyle have represented my best experience to date with solicitors, and although I was unable to take this matter further on this occasion I would have no hesitation in using you again or recommending you to others.
I would really like to recommend your services to everyone considering litigation. Your online service is fast, efficient and easy to use. We found that your costs are simply unbeatable for pre-litigation and I feel sure that when we require legal support, Yuill + Kyle will be our first choice.
Yuill + Kyle successfully recovered £19,000 for our client. We were delighted with their professionalism and fully intend to use them again in the future.
"Stephen Cowan displays calm equanimity in the face of challenging, complex and often adversarial situations, and responds quickly and professionally."
Contact our debt recovery specialists.Call 0141 331 2332
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