A customer hasn't paid your invoice. You've contacted them many times and you're looking for someone to turn to for help. Is a letter before action from a solicitor the right approach?
There are quite a number of companies that can be found online offering to send a letter before action for a small fixed fee, sometimes as low as only a few pounds. It might sound worth a try, but before you jump in, pause and consider the drawbacks.
First, the more these services are used by companies chasing payment, the more obvious it is to your debtor what's going on. They will likely know that all you've done is enter their details into a form on a website and paid a few pounds on your credit card to get this boiler-plate letter sent to them. They may well see it as an empty threat.
Second, think about the economics of this service and why it is that a legal firm (that normally charges hundreds of pounds to send a letter) would be offering to send this for you at such a low cost. You can be certain that they're not interested in the couple of pounds that the letter brings in - postage and printing and envelope stuffing will take most of that.
Instead of a solicitors letter before action, why not use our CreditXS online debt collection service and add interest and our success fee to the debt to be collected?
Escalate the late debt without burning bridges. Hand over your difficult to collect invoices to us to collect, so you can get on with what you do best.
No, what the solicitors are really hoping for is that the letter doesn't work and you end up in court. The low cost letters before action are nothing more than a way to feed a pipeline of legal cases. Solicitor's time to take it to court would be paid for by you. Although the sum would be added to the payment being sought from the debtor - you would be quickly increasing the amount of money that you have at risk.
Third - think about whether you might want to do business with your customer ever again - perhaps this experience has put you off ever working with them, but by escalating so far, so fast you may well be burning bridges that you later come to regret. We sometimes find that unpaid invoices are down to a break down in communication, missing paperwork or a misunderstanding, our approach means that your future opportunities are not closed off before they need to be.
Once you've jumped right to letter before action, you're left with nowhere to go - your only next step is to go to court, which is exactly what these online letter before action sending services are aiming for.
Our CreditXS debt recovery service is no-win no-fee - you pay a small percentage of the amounts collected only once they're in your account. If we don't collect any money, you pay nothing. This way our goals align perfectly with your own - we are motivated to bring in the maximum amount of money for you in the minimum time.
Just like you, we'd prefer that the money is collected quickly and without going to court. Consequently there is a carefully designed programme of contact with the client before a final demand is issued, with the goal of collecting the money quickly and avoiding court costs. However, our capacity to take the claim to court for you provides a credible threat to the debtor, which helps escalate the matter for you and focus minds.
You can also elect to add statutory compensation and interest to the debt. The compensation can include reasonable collection costs, which can be set at the level of our fee. If the debtor pays the whole amount then our service has come for free. Read more about this service here.
How we can Help: