Commercial Debt Recovery Legal Advice

Commercial Debt Recovery Solicitors – Get Your Business Paid

Pre-legal collections | Court proceedings | High Court enforcement | Fixed fees available

If your invoices are not being paid, or a debtor has simply stopped engaging, you are not just dealing with an inconvenience, you are facing a risk to your cashflow and stability. Unpaid debts can restrict your ability to pay suppliers, invest in growth or meet payroll, and they take time and energy away from running your business.

At Jonathan Lea Network, our team of debt recovery solicitors, based in Sussex and London, helps businesses, professionals and individuals recover money owed to them in a structured, commercial and cost-effective way. We cover everything from firm but constructive pre-legal chasing, through issuing county court and High Court claims, to enforcing judgments where payment is still not made. We act for clients throughout England and Wales.

Arrange a free introductory call with a debt recovery solicitor today to understand your options and start moving the matter forward. Call us on +44 (0)1444 708 640 or use our online enquiry form and we will get back to you.

What is commercial debt recovery and why does acting early matter?

Commercial debt recovery is the process of securing payment of money that is due but unpaid, usually under a contract such as a supply agreement, consultancy contract, loan, or service engagement. It can involve anything from a single overdue invoice to large portfolios of unpaid accounts, and can concern both business and personal debtors.

For businesses, timely debt recovery is vital to maintaining healthy cashflow and financial resilience. If late payment becomes normal, it can quickly:

• Restrict your ability to invest and grow. When expected cash does not arrive, you may struggle to invest in stock, staff and marketing, even if sales on paper look strong. Over time, this undermines your ability to compete and scale.
  
• Increase reliance on borrowing. Businesses that are not paid on time often have to rely on overdrafts or loans to cover gaps, and this adds interest costs and risk. In tougher trading conditions this can become a serious strain on the business.
  
• Create a culture of late payment among customers. If customers believe they can pay you last, or not at all, that mindset can spread and becomes much harder and more expensive to challenge later. You risk being at the bottom of everyone’s payment list.
  
• Damage business relationships and reputation. If suppliers, lenders or partners see that you are struggling to manage credit control or chasing debts very late, they may question your systems and reliability, which can lead to tighter terms or a reluctance to extend credit in future.
  

Acting early sends a clear message that you take payment terms seriously and improves your chances of recovery, often without the need for formal court proceedings. In England and Wales, businesses also have the right to charge statutory interest and fixed debt recovery costs on late commercial payments under the Late Payment of Commercial Debts (Interest) Act 1998, which can strengthen your position and help offset some of the cost of chasing.

Our role is to help you take proportionate, sensible steps, escalating only when needed and always with your wider commercial relationships and objectives in mind.

Pre-legal debt recovery options

Negotiation and pre-action protocols

In most cases, we start by seeing whether the debt can be collected without issuing court proceedings. Properly handled, this stage can resolve many debts quickly and at relatively low cost.

Typical pre-legal steps include:

• Initial review and advice. We assess the contract or invoice, correspondence, any dispute raised by the debtor and the age of the debt. This helps us confirm that there is a sound legal basis for the claim, identify any weaknesses and decide whether the likely recovery justifies the cost of further action. You avoid throwing good money after bad and gain clarity on your position.
  
• Letters before action and protocol-compliant correspondence. We draft and send a clear, firm Letter Before Action that complies with the relevant Pre-Action Protocol. For business debts, this is typically the Practice Direction on Pre-Action Conduct, which requires you to provide clear information about the claim, allow a reasonable time for response, usually at least 14 days, and consider alternative dispute resolution. Properly complying with these requirements strengthens your position and reduces the risk of costs penalties later.
  
• Negotiation and repayment discussions. Where appropriate, we open dialogue with the debtor to explore realistic payment options, such as short-term instalment plans or slightly extended deadlines. This is often effective where the debtor is willing to pay but facing temporary cashflow difficulties. A structured, solicitor-led negotiation can achieve results while preserving a workable relationship.
  
• Recording agreements clearly. When a settlement or payment plan is agreed, we make sure it is documented in a clear, enforceable way, for example in a settlement agreement or, if proceedings have started, a Tomlin order. A Tomlin order is a type of court order that records a settlement by consent and allows the parties to enforce the agreed terms if they are not complied with. This gives you a safety net if promises are not kept.
  

Our goal at this stage is to secure payment where possible without issuing a claim, while still positioning you well if formal proceedings become necessary.

Examples of effective pre-legal action

Regular customer with cashflow issues: A long-standing customer may fall behind due to their own short-term pressure rather than any real dispute. A firm but carefully worded solicitor’s letter, combined with a realistic but time-limited instalment plan, can often achieve full recovery over a short period. You receive your money, the customer has breathing space, and an otherwise valuable relationship can continue.

Modest debts where costs must be controlled: For smaller invoices, particularly where you have multiple overdue accounts, we can help you set up a proportionate, standardised process. That might involve a sequence of internal chasers followed by a solicitor’s letter before action. Many debtors pay once they see that the next step is likely to be a court claim, and you avoid unnecessary legal expense on debts that are too small for heavy litigation.

Situations where reputation matters: In some sectors, such as professional services or local businesses, you may be anxious about appearing overly aggressive. In those cases, we can adopt a tone that is firm, professional and clearly grounded in the contract, while avoiding unnecessarily hostile language. This demonstrates that you take your rights seriously, but you are still prepared to act reasonably, which can be important for your reputation and ongoing work.

Legal debt recovery and enforcement actions

If pre-legal measures do not produce payment, you may decide that formal legal action is required. We will always discuss proportionality, likely outcomes and costs with you before you make that decision.

Legal proceedings for debt recovery

Depending on the circumstances, we can:

• Issue a county court or High Court claim. We draft and issue a money claim in the appropriate court, tailored to the size and complexity of the debt. Claims under £10,000 are typically allocated to the small claims track, where each party generally bears their own legal costs, except for limited fixed amounts. Claims of £10,000 or more may be allocated to the fast track or multi-track, where, if you succeed, a significant proportion of your legal costs can often be recovered from the losing party. This helps you weigh up whether formal proceedings are worthwhile.
  
• Seek default or summary judgment. If the debtor fails to respond in time, we can request judgment in default. Where they do respond but have no real prospect of successfully defending the claim, we can consider an application for summary judgment. Both routes can avoid a full trial, shorten the process and keep costs down, although they must be used carefully and only where appropriate.
  
• Deal with defended and complex claims. If the debtor disputes the debt, raises set-off or counterclaims, or suggests that the goods or services were defective, we can handle the full litigation process. This includes disclosure of documents, witness evidence, expert evidence if required, and trial preparation. This approach is particularly relevant for higher value or cross-border debts where the financial stakes justify a more intensive strategy.
  

Throughout any proceedings, we keep enforcement in mind. There is little benefit in obtaining a judgment if it cannot be turned into cash, so we always consider what the debtor owns and how best to secure your position.

Advanced enforcement tactics

A judgment is a key step, but it is not always the end of the journey. If the debtor still does not pay, you may need to take enforcement action. There are several tools available, and choosing the right one for your situation is crucial.

• High Court Enforcement Officers and county court bailiffs. Judgments of £600 or more, including interest and costs, can usually be transferred to the High Court for enforcement by High Court Enforcement Officers. HCEOs often have more robust powers and more flexible working arrangements than county court bailiffs, which can lead to faster and more effective enforcement where the debtor has assets. For smaller amounts below this threshold, county court bailiffs may still be an appropriate option.
  
• Charging orders over property or other assets. If the debtor owns property or certain other valuable assets, a charging order can secure your judgment against that asset. In some cases, this can be followed by an application for an order for sale, although the court will consider the circumstances carefully. Even where sale is not immediately pursued, having a charge can give you leverage and may mean you are paid when the debtor sells or refinances.
  
• Third party debt orders and attachment of earnings. Where you know that a debtor holds funds with a particular bank, or that they have a regular salary from an employer, we can apply for a third party debt order or an attachment of earnings order. These compel the third party to pay money directly towards your judgment, reducing the scope for further delay or avoidance.
  
• Orders for information. If you do not know much about the debtor’s assets or income, the court can require them to attend for questioning and provide information under oath. This can reveal bank accounts, property interests or business relationships that help us target enforcement effectively.
  
• Winding-up petitions and bankruptcy proceedings. In serious cases, particularly involving companies that appear able to pay but refuse to do so, insolvency-based action can be a powerful last resort. The threat, or in some cases the issue, of a winding-up petition can bring matters to a head. However, it must only be used where the debt is genuinely undisputed and for a sum exceeding the statutory minimum, currently £750 for individuals or £10,000 for companies. Misuse of insolvency procedures can lead to cost sanctions and claims that you have abused the process, so expert advice is essential before taking this route.
  

For larger or more complex cases, we can also work alongside asset tracing specialists, forensic accountants and, where necessary, overseas advisers to identify and reach assets that might not be immediately obvious.

Debt recovery solutions tailored for different clients

SMEs and growing businesses

Small and medium-sized businesses often feel the impact of unpaid debts most directly. You may not have an in-house legal team, and the time spent chasing payment is time taken away from winning new work and serving existing customers.

For SMEs and growing businesses, our service is designed to be:

• Accessible and straightforward. We explain your options in clear, plain English and help you choose a route that fits your budget and appetite for risk. You should always understand why we are recommending a particular step and what the potential outcomes are.
  
• Affordable and proportionate. For many straightforward, undisputed commercial debts, we can offer fixed-fee options for key stages, such as drafting and sending letters before action and preparing and issuing claims. This gives you clarity on costs, helps with budgeting and allows you to decide which debts are worth pursuing.
  
• Supportive of ongoing relationships. Where you want to preserve a key customer or supplier relationship, we can focus on firm but constructive communication and look for solutions that allow everyone to move forward, while still protecting your rights and cashflow.
  

By acting as an external partner in your credit control strategy, we help you improve payment behaviour among your customers without losing sight of your wider commercial goals.

Corporate and high-value debt recovery

Larger companies, professional firms and high-net-worth individuals dealing with significant or complex debts often need a more bespoke approach. You may be handling high-value receivables, international elements, or debtors who are actively taking steps to avoid payment.

For these cases, we offer:

• Strategic, partner-led case handling. Senior lawyers remain closely involved in planning and decision-making, ensuring that the approach to litigation or negotiation stays aligned with your commercial priorities and risk profile. You have a clear point of contact who understands both the legal detail and the bigger picture.
  
• Sophisticated enforcement planning. We consider enforcement options from the outset, including the location of assets, potential cross-border issues and any need for urgent interim measures. This can include freezing orders, charging orders and coordinated action in multiple jurisdictions where appropriate.
  
• Collaboration with other professionals. We work alongside insolvency practitioners, forensic accountants, asset tracers and overseas lawyers where needed. This team-based approach ensures that you have the right expertise at the table and that efforts are coordinated rather than fragmented.
  

Whether you are an SME chasing a series of modest but important invoices, or a larger organisation dealing with a high-stakes debt, our focus is always on practical, realistic recovery that makes commercial sense.

How to engage our debt recovery services –  step by step

1. Schedule an initial consultation

You can contact us by phone or via our online enquiry form to arrange a free introductory call with a debt recovery solicitor. In this initial discussion we will:

• Ask you to outline the background to the debt, including who owes the money, how much is outstanding, how long it has been overdue and what correspondence has taken place so far.
  
• Identify key documents and information, such as contracts, invoices, statements of account and relevant emails, and explain how best to provide these to us securely.
  
• Give you an initial view on the strength of your position, possible legal and pre-legal routes, and whether there appear to be any urgent steps you should consider, such as preserving evidence or avoiding limitation issues.
  

2. Agree service terms, pricing and strategy

If you decide to move forward, we will:

• Send you a clear engagement letter and costs information which sets out how we will charge, what work we will carry out at each stage and who will be working on your matter. We will typically provide this within one to two working days of your initial consultation, so you can make an informed decision about how to proceed.
  
• Discuss and agree a strategy with you, including the first steps we will take, the level of escalation you are comfortable with and any sensitivities, such as ongoing trading relationships or publicity concerns.
  
• Confirm expected timescales for sending any letters before action or, where appropriate, issuing proceedings and outline the possible next steps in different scenarios.
  

Only once you are comfortable with the plan and pricing do we begin substantive work.

3. Regular progress updates and strategic reviews

Debt recovery is not always linear, and things can change as more information emerges or as the debtor’s behaviour shifts. To keep you in control, we will:

• Provide regular updates when key events occur, such as responses to letters, the filing of a defence, court orders or settlement offers, using your preferred communication method.
  
• Review the strategy with you at appropriate points, especially when a new option opens up, for example when we obtain information about assets or when a settlement offer is made. This means your approach remains proportionate and aligned with your objectives.
  
• Give clear, itemised invoices and explain the costs position regularly, so you can see how your budget is being used and decide whether to continue, adjust or conclude the process at each stage.
  

This structured, step-by-step process is designed to give you predictability, reassurance and control, while we focus on the detail and the day-to-day work.

Common challenges in commercial debt recovery and how we address them

Challenges businesses face in debt recovery

Some of the most common difficulties we see include:

• Uncooperative or evasive debtors. Debtors may stop responding, change contact details, ignore letters or make repeated promises that are not kept. This behaviour is frustrating and can sap internal time and energy, especially if you are trying to manage the situation alongside your normal workload.
  
• Complicated or incomplete contracts. In many cases, terms are spread across old proposals, email exchanges and verbal understandings. When a dispute arises, the debtor may claim that the contract is unclear or that the goods or services were not as agreed. This can make businesses nervous about pushing claims if they are unsure how a court might view the evidence.
  
• Extended timelines and “debt fatigue”. The longer a debt remains unpaid, the harder it can feel to justify further effort and cost. Staff who have chased repeatedly may be reluctant to keep going. On top of this, there are limitation periods to consider, since in England and Wales you generally have six years from the date a debt became due to start court proceedings to recover it. Delays can therefore put your ability to recover the debt at risk altogether.
  

How Jonathan Lea Network overcomes these challenges

We help clients navigate these challenges through a combination of careful analysis and proactive case management:

• Clear early assessment of risk and evidence. Before recommending issue of proceedings, we take a close look at the documentation and sequence of events. Where contracts are messy or incomplete, we explain how a court is likely to approach the situation and whether there are practical ways to strengthen your case. This allows you to decide whether to proceed with your eyes open.
  
• Taking over communication and setting boundaries. Once instructed, we can take over contact with the debtor. This removes the emotional burden from your team and sends a clear signal that you are serious. Our communications are professional, precise and focused on outcomes, which often prompts faster and more realistic engagement.
  
• Targeted enforcement strategies. Instead of defaulting to a single enforcement method, we look at what is known about the debtor’s assets and circumstances and recommend the most appropriate tools, whether that is High Court enforcement, a charging order, a third party debt order or, in suitable cases, insolvency proceedings. This helps keep cost and effort proportionate to likely recovery.
  

By combining legal knowledge with an understanding of how businesses actually function, we aim to turn draining, open-ended disputes into structured processes with clear decisions and realistic prospects.

Why choose Jonathan Lea Network for debt recovery?

• End-to-end commercial debt recovery expertise. We handle everything from early-stage pre-legal collections and protocol-compliant letters, through county court and High Court proceedings, to enforcement and judgment recovery. You do not need to coordinate between multiple providers at different stages.
  
• Value for money and pricing clarity. For straightforward, undisputed commercial debts, we provide clear fixed-fee options for key stages such as letters before action and issuing claims. For defended or more complex matters, we agree transparent hourly or capped-fee arrangements. You always know how we propose to charge and can decide whether the likely recovery justifies the investment.
  
• Support for both SMEs and larger organisations. We regularly act for small and medium-sized enterprises with limited in-house legal resources, as well as larger corporates and high-net-worth individuals dealing with high-value or complex debts. This breadth of experience means we can scale our approach to match the size and complexity of your case.
  
• Team-based, proactive service. Your matter benefits from a blend of partner-level strategic oversight and efficient work by experienced solicitors. We do not simply send one letter and wait. Instead, we actively manage your case, follow up promptly and look for opportunities to move matters towards a sensible conclusion.
  
• Clear, approachable communication. We pride ourselves on being experts who are also easy to talk to. We explain legal terminology in plain language, answer your questions openly and give honest, realistic advice, not just what you might want to hear in the moment.
  

What to do now –  take the first step towards recovering your debt

If you are dealing with unpaid invoices, overdue loans or other commercial debts and are unsure what to do next, early specialist advice can make a significant difference. Speaking to a debt recovery solicitor does not commit you to immediate legal action, but it does give you clarity and a plan.

To speak to a member of our debt recovery team, call us on +44 (0)1444 708 640 or email us. We will usually respond within the next working day to arrange your free introductory call.

We advise clients nationwide from our bases in Sussex and London, and we are happy to meet by phone, video or in person, depending on what works best for you.

Our debt recovery legal advice service can help you at any stage in the recovery process from pre-legal debt collection to litigation and insolvency action. We advise on: