Nicholson Electrical Limited – St Austell, Cornwall – Free Business Debt Recovery

Nicholson Electrical St Austell Cornwall

Nicholson Electrical Limited – St Austell, Cornwall – Free Business Debt Recovery

Nicholson Electrical Limited – St Austell, Cornwall – Free Debt Recovery

Free Business Debt Recovery Cornwall

Overview

Nicholson Electrical, a family run business in St Austell had a bad debt, dating back 3 years, of £18,500. Veritas Legal were referred by their accountants, Crest Accountants LLP, to recover the business debt. We succeeded in recovering the full debt, plus recovery costs and interest at no cost to the client.

 

Issue

Nicholson Electrical is a family run business in St Austell. One of their clients had accumulated a debt of £18,500 dating back to 2011. The case was referred to Veritas in March 2014 by their accountants, Crest Accountants LLP.

 

Action

Veritas Legal Services was engaged to recover the debt. Given the long-standing nature of the debt, the financial impact on our client’s business, and the repeated false promises from the debtor we decided on immediate, firm action. Veritas served a statutory demand as the precursor to filing a winding up order. This got the immediate attention of the two directors of the debtor company.

 

Result

The £18,500 debt was recovered in full plus debt recovery costs of £1031 and interest of £3700.

 

“We would highly recommend Veritas Legal for a no-nonsense approach to debt recovery for any business.
Our experience has been 100% success rate relieving a huge amount of stress and worry from our shoulders.
Veritas Legal are prompt, responsive, knowledgeable, get the job done and most importantly cash flow for your business!”

Background

Sadly, a common feature with outstanding business debts is that debtors repeatedly promise that debts will be paid imminently. This often stalls the debt recovery process for some time and can lead small businesses into financial problems.

Nicholson Electrical Limited is a small family run business in St Austell. One of their clients had run up a debt of £18,500, which is a significant percentage of their turnover. The size and age of the debt meant that they had to refinance their business to stay afloat.

Their accountants referred them to Veritas because of our reputation for rapid, cost- free debt recovery.

While most debtors settle after one letter and a follow up call, we reasoned that the situation had gone beyond the stage where a simple formal letter would have the desired effect. So we issued a statutory demand under section 123(1)(e) of The Insolvency Act 1986 prior to filing a winding up order.

 

Outcome

The debt of £18,500 was paid, together with debt recovery costs of £1031 and interest of £3700.

Because the debt recovery service is free to our clients we normally retain the costs and interest. In this case, because the business owners had suffered financially through the delay and had injected personal money into their company, we also made a contribution of £1500 to help towards those financing costs.

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