Last year, Scottish insolvency activity reached its highest level in over a decade. 1,132 firms became insolvent in Scotland highlighting the real impact of the financial strains that many businesses are facing. There are numerous factors that have caused the rise in insolvency cases. Scotland’s businesses are still suffering from a “Covid hangover” and to add to this stress of trying to recover from the pandemic, the ongoing cost-of-living crisis has been abrupt, leaving many people financially fragile. With external factors having a significant impact on business, it can be easy to let things slide – a late invoice or even dealing with unpaying customers or clients, which can end up accumulating debt owed/or you that owe and, in turn, be detrimental to the longevity of businesses.
At Miller Samuel Hill Brown, we regularly advise businesses on cash flow management and pursuit of debtors. Awareness that insolvency activity is more of a risk than it has been in the past makes it even more useful if your business has a debt recovery procedure in place. Having solicitors involved also allows us to send formal letters to debtors which can sometimes prompt debtors to pay outstanding invoices and reflects that the company is willing to take serious action if necessary to recover the sums. We tailor our approach to our clients and their debtors to ensure the chances of successfully recovering owed funds are maximised, whilst also being conscious of the economics of pursuit. Given that, businesses should consider partnering with a firm of debt recovery solicitors. If you would like to discuss the costs involved in the pursuit of debtors, whether as a one-off or as part of a larger body of debt recovery work – get in touch with our Dispute Resolution team now on 0141 221 1919