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Letter Before Action

Commercial Debt Recovery: Letter Before Action

Businesses chasing money owed to them must send a letter before action as part of the legal process – or risk being penalised with costs.

Under the law, a letter before action serves several purposes:

  • to ensure the other party has full details of the debt and what will happen if they do not pay it – effectively a last warning before court action
  • to provide the other side with all the information it needs to make a proper judgment about the debt
  • to explore other ways to resolve any issues.

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Why Using Solicitors Is Better Than A Letter Before Action Template

There is a misconception that using lawyers to chase your unpaid invoices is expensive – it is not.

Beware of using template, draft or example letters before action found online. Like DIY wills, they are a false economy that can go badly wrong and be costly to rectify.

Debtors are known to use mistakes in the small print as a means of evading payment. You must be certain you are targeting the correct legal entity in your letter.

Get it wrong and the costs could be significant – far higher than any small saving you may have made by attempting the process yourself. The cost of using a specialist to draft your letter is so low that it makes sense to bring in the professionals right from the start.

And remember – a formal letter with a recognised law firm’s letterhead always gets more attention than a DIY letter cribbed from the internet.

Time is money in business: as a business owner or manager you have more important things to do than chase invoices yourself. Your time is far too valuable.

Get Coles Miller To Write Your Letters Before Action

Coles Miller’s specialist debt recovery team in Poole, Dorset helps companies, partnerships and sole traders all over the country.

Need help with debt recovery? Email our expert team using the contact form below or contact Coles Miller Debt Recovery Manager Eric Holt, 01202 355695.

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