The economic downturn is putting severe strain on businesses across the UK. Here, in part two of our new series, the Higgs LLP Dispute Resolution and Restructuring and Insolvency teams advise businesses on their options when it comes to recovering debt

With the outbreak of a global pandemic in 2020, the UK was thrown into financial despair when a six-month recession resulted in the largest economic downturn on record. Whilst the economy continues to recover from the impact of the COVID-19 pandemic, the increase in interest rates, rising inflation and slower economic growth has led to the Office for Budget Responsibility (OBR) forecasting a further recession in the UK.

In August 2022, the Office for National Statistics published that one in 10 UK businesses had reported a moderate to severe risk of insolvency. These statistics, coupled with the forecast of a recession, means it is absolutely essential that businesses brace themselves for the inevitable impact of economic downturn.

Financial crisis will understandably see a rise in debt amongst businesses. Arguably, one of the most important methods of preserving cash flow within a business is to establish strong credit control procedures and, in particular, the early recovery of unpaid invoices.

In 2015, it was reported that SMEs wrote off nearly £6bn worth of debt. One of the primary reasons for businesses taking such action was due to being unclear regarding the routes available for pursuing outstanding debt. This is further echoed by a survey conducted in early 2022, which revealed that three in five small to medium sized businesses were currently awaiting money which was tied up in unpaid invoices.

In the current economic climate, it is vital to be proactive and understand the options available for the early recovery of debt.

At Higgs LLP, we offer a bespoke, one-stop, debt recovery service. We aim to recover debt as early as we can, recover as much as we can and as economically as we can. The team specialises in pre-legal recoveries, tracing debtors, litigation, insolvency and enforcement.

We also offer services for volume debt recovery and, using our specialist debt recovery software, we are able to deliver effective results at low cost.

For further information about ways in which we can help your business manage its unpaid invoices, please contact Carole Maddock on 01384 327155 or Jonathan Moss on 01384 327283.