When your business is owed money, taking swift and decisive action is crucial. At Legal Recoveries, we specialise in commercial debt recovery, helping businesses reclaim unpaid debts through professional and effective debt recovery services. Whether you’re dealing with small business debt recovery or large-scale commercial debt, our experienced team is here to support you.
Commercial Debt Recovery Solutions
Our commercial debt recovery solutions are designed to recover outstanding debts efficiently while maintaining professional relationships. We work closely with businesses to ensure that all available legal avenues are explored, including:
Letters Before Action (LBA) – A formal letter demanding payment within a set timeframe.
Interest and Compensation Claims – Claiming statutory or contractual interest and compensation as per the Late Payment legislation.
Court Proceedings – If necessary, issuing legal claims to recover the debt.
Commercial Debt Recovery Process
We provide a straightforward and transparent debt recovery process:
Assessment of the debt – Reviewing contracts and agreements to establish your legal position.
Pre-litigation action – Sending Letters Before Action and negotiating with the debtor.
Legal proceedings – If required, taking the debtor to court.
Judgment and enforcement – Enforcing judgments through various legal means, including High Court Enforcement and Charging Orders.
Business Debt Recovery
Unpaid debts can have a significant impact on your business’s cash flow. Our business debt recovery services ensure that businesses of all sizes can reclaim outstanding funds without unnecessary stress. We act swiftly to ensure minimal disruption to your operations, handling everything from initial contact with the debtor to legal enforcement if necessary.
Commercial Debt Recovery Case Study: £180K Recovered in 42 Days
When a national wholesaler faced £180,000 in overdue invoices from a key retailer, our Commercial Debt Recovery team stepped in. We began with a 48-hour trace to confirm trading status, issued a Letter Before Action the same week and negotiated a short-term repayment plan backed by a personal guarantee. When promised funds failed to land, we escalated to a County Court Judgment and transferred enforcement to High Court officers. Within six weeks the debtor cleared the balance plus statutory interest and our client recovered 100 % of legal costs.
Results at a glance
• £180K principal + £6K interest + £2K costs recovered
• Full payment secured 42 days after instruction
• Client retained trading relationship on revised terms
This outcome shows how fast, decisive action—combined with transparent updates in Debt Manager—turns aged commercial debt into working capital without lengthy court battles. If you have high-value B2B accounts dragging past due, talk to us about a tailored Commercial Debt Recovery strategy that protects cash flow and preserves business relationships.
What is a Collection Agency in B2B?
In the commercial world, a collection agency acts as an extension of your credit-control team, applying solicitor-backed pressure to secure unpaid invoices between businesses. Engaging an agency frees your staff to focus on core operations, reduces Days Sales Outstanding (DSO) and preserves vital trading relationships through professional mediation.
Debt Value
Up to £999.99
£1,000 – £9,999.99
£10,000 or more
Late Payment Claimable Charges
£40
£70
£100
Small Business Debt Recovery
For small businesses, unpaid invoices can be particularly damaging. Our small business debt recovery service is designed to assist SMEs in recovering debts efficiently, ensuring that your business remains financially stable. We offer tailored solutions to meet the unique challenges faced by small businesses in debt recovery cases.
Business Debt Help
If your business is struggling to collect overdue payments, business debt help from our experts can provide the guidance and legal support needed. Our team can advise you on the best strategies for debt recovery, ensuring compliance with relevant laws and regulations.
Late Payment Legislation
Under UK Late Payment legislation, businesses have the right to claim:
Interest on overdue invoices.
Compensation fees based on the amount owed:
Up to £999.99: £40
£1,000 – £9,999.99: £70
£10,000 or more: £100
Reasonable debt recovery costs where applicable.
We ensure that you receive all entitled payments under this legislation, providing clear advice on your legal options.
We use the quicker Claims Productions Centre to issue claims through the County Court. We can handle any of your defended matters up to and including a final hearing. The work is supervised by Rachael Ward, our COLP lawyer (Compliance Officer for Legal Practice).
Letter Before Action (LBA) – Encouraging prompt payment from debtors.
Legal Claims and Court Action – If necessary, pursuing the case through the courts.
Judgment and Enforcement – Ensuring that debts are recovered using legal enforcement methods, such as:
High Court Enforcement Agents.
Charging Orders.
Attachment of Earnings Orders.
Insolvency proceedings, including Statutory Demands and Winding-Up Petitions.
Asset Trace Report
During the collections process we can obtain a Mini or full Asset Trace Report about your customer which would provide us with information that we can use to determine the most appropriate action to take. The reports are in-depth and include associated addresses, insolvency details, legal proceedings, target company/business research, active directorships, dissolved directorships, overseas directorships, non-limited company research, shareholdings, and land registry searches.
From the start of our relationship, we will:
Save you time and valuable resources in the collection of money owed.
Devise strategies to maximise recovery of your debts.
Provide you with continued support. advice and assistance throughout the debt recovery process.
Ensure that your reputation is always protected by always acting in a professional, compliant, and ethical manner.
Provide you with Debt Manager access to enable you to keep updated as to the progress of your cases.
Get in touch
If you have been contacted by us please click here If you are a business and would like to know more about how we can help you please complete the short form below and we will get back to you as soon as possible.
Featured Customer Reviews
Kate Contracts & Finance Lead Private Hospital Client
We have recently engaged in the services of LRC for a large volume of debt collection and they have provided an outstanding service to us, surpassing our expectations of recovered debt. As a result, we will now be using them going forward as part of our quarterly debt review and have built a new debt collection process to effectively engage in their services.
The responsiveness of the whole team has been exceptional (maybe even too good, with the number of responses on our workflow ever-growing)! No request is too much of an ask and my weekly request for an updated report is always forthcoming. We look forward to continuing and developing our working relationship with Andrea and the team.
Head of Operational Finance – Central Surrey Health Limited (t/a CSH Surrey)
Central Surrey Health Ltd (t/a CSH Surrey) are extremely grateful to Legal Recoveries and Collections Limited (LRC) for their outstanding support and expertise in managing some of our protracted debt.
Throughout our experience, LRC have been a trusted partner, guiding us through difficult and sensitive repayment situations with professionalism and tact.
They have always provided clear, strategic advice, ensuring that we were informed every step of the way. Their thorough understanding of debt recovery procedures and the legal landscape gave us confidence in navigating difficult situations.
Their dedication to achieving a successful outcome has been invaluable to our business.
We highly recommend LRC to any organization seeking debt recovery services, particularly in complex salary overpayment matters.
Nottingham City Council
I have had the pleasure of working with Legal Recoveries and Collections (LRC) for several years across various industries. Throughout our partnership, LRC has consistently demonstrated a deep knowledge of the market and provided strategic insights that have been invaluable to our business. Their excellent communication and commitment to delivering on promises have always stood out. LRC’s proactive approach, engaging early and adapting as needed, ensures that we are always prepared and supported. Their partnership style not only delivers the best results for our business but also enhances the experience for our customers.
Credit Control Manager – Leading International Law firm
“LRC provide a professional and efficient service, delivering regular updates and effective solutions”
International Credit Insurance Client
We have been utilising the legal review services of Legal Recoveries and Collections (LRC) for the past few years, and we couldn’t be more satisfied. Their reviews are consistently thorough and informative, becoming an essential part of our pre-legal processes. This has significantly helped improve our recovery rates and reduced overall legal costs. The team at LRC are also very easy to work with and always available to provide professional advice when needed. We highly recommend their services.
North East Ambulance Service
As an NHS ambulance Trust, we don’t have in-house debt collection specialists, so find it difficult to pursue monies outstanding once our usual follow up process runs its course. LRC was recommended to us by another local NHS Trust and we approached them to find out what they could offer. We have been using LRC for nearly 3 years now and have not been disappointed. Our collection rate is circa 70% which represents a significant sum of money that is coming back into the NHS for patient care.
The team are very knowledgeable on the best route to recovery but will also advise when its just not financially viable to pursue a debt any longer. We have regular updates and meetings with Andrea the client services manager so everything is kept on track. It’s always our decision but LRC give us the best tools to make the right one.
Commercial Debt Recovery FAQs
What is commercial debt recovery and why is it important for my business?
Commercial debt recovery is the process of pursuing payment of overdue invoices or debts owed by other businesses. Timely recovery of these debts is vital to maintaining healthy cash flow, ensuring business operations continue smoothly, and avoiding financial strain. Efficient commercial debt recovery helps you minimise losses, protect profit margins, and reduce the risk of insolvency by recovering funds as soon as they become overdue.
What steps are involved in a typical commercial debt recovery process?
The commercial debt recovery process usually starts with sending invoices and payment reminders. If payment is not received, further steps include issuing Letters Before Action or formal payment demands. Should these fail, legal proceedings may be initiated through County Courts to obtain a County Court Judgment (CCJ). Enforcement action such as bailiff visits, attachment of earnings, or charging orders may follow to recover the debt.
How long do businesses have to pay commercial invoices in the UK?
By law, commercial invoices are generally expected to be paid within 30 days unless otherwise agreed. However, payment terms can vary by contract, with some agreements allowing up to 60 days or longer. It is important for businesses to clearly specify payment terms in contracts and monitor payment dates to act quickly when debts become overdue.
Can I charge interest and compensation on late commercial payments?
Yes, under the UK Late Payment of Commercial Debts (Interest) Act 1998, creditors have the right to charge statutory interest on late payments and claim fixed sums as compensation for debt recovery costs. The amount you can claim depends on the size of the debt and includes fixed fees ranging from £40 to £100 for debts up to £1,000 and above.
How do I claim late payment interest and compensation?
You can claim interest and compensation by issuing formal communication to the debtor detailing the amount owed, interest accrued, and compensation fees. Including these charges in a Letter Before Action strengthens your claim. If the debt remains unpaid, these amounts can be added to court claims and recovered alongside the principal debt.
What information do I need to provide to start commercial debt recovery?
You should supply comprehensive documentation including copies of unpaid invoices, contracts, delivery notes, statements of account, and records of previous payment reminders or correspondence with the debtor. Accurate details about the debtor’s legal name, registered address, and contact information expedite the recovery process.
What are the typical costs involved in commercial debt recovery?
Costs vary depending on the stage and complexity of recovery efforts, including fees for legal letters, solicitor involvement, court fees, and enforcement charges. Many debt recovery agencies, including Legal Recoveries & Collections, offer competitive pricing structures aligned to the value and nature of the debt, with transparent upfront quotes to avoid hidden fees.
How long does commercial debt recovery usually take?
The length of recovery depends on factors like the debtor’s willingness to pay, the dispute status, and the complexity of the case. Many debts are paid during early communications, but formal legal processes and enforcement usually take weeks to months. Efficient debt recovery providers strive to minimise delays through proactive management.
What happens if the debtor disputes the debt?
If a debtor disputes the debt, the creditor may need to provide evidence supporting the claim, such as signed contracts or delivery confirmations. Negotiations or mediation can help resolve disputes without court involvement. If unresolved, disputes may be settled through formal court hearings where evidence is reviewed before a judgment is made.
Can Legal Recoveries & Collections help prevent future commercial debt issues?
Yes. Legal Recoveries & Collections offers credit control services, helping businesses establish clear credit policies, conduct credit checks on clients, and implement effective payment monitoring. This proactive approach reduces the risk of future bad debts and improves overall financial stability.
Get in Touch with Us
If you have any questions about our service or would like to discuss your matters with us in greater detail, please contact the Business Development Team on 0330 024 6342
Gaurav is our senior consultant solicitor with 18+ years of litigation experience. Having dealt with contentious commercial cases that have found their way in the Civil Procedure Rules (CPR), he is the exciting new addition to our team.
Gaurav is the designated supervisor for Dispute Resolution and oversees the team to maintain the high standards our clients deserve.
Our Coronavirus Policy
It remains business as usual for the team at LRC Ltd, however as Coronavirus spreads, we would like to update you on what we are doing to minimise any potential disruption and continue to provide you with the service you expect from us to support you.
We already have a business continuity plan in place for such an event and have reviewed this in light of Coronavirus. As part of our plan, we are:
• Following the Government guidelines to reduce the risk of infection and spread of the virus
• Using video/phone conferencing wherever possible to remove the need for face-to-face meetings and travel
• Identifying vulnerable employees and checking travel plans
• Many of our staff already have the facility to work from home and we are extending this to more staff where possible
• Phones are easily diverted and we can operate from a number of locations
• Briefing all our staff on how to reduce the risk of infection to themselves and the people they come into contact with.
Please be aware we will never email, call or text you without quoting an LRC unique reference for your case. Fraudsters may try to imitate our communications. If you have any concerns please do not click on links within an email or text message and please do forward to us immediately for investigations using our email address fraudinvestigations@legalrecoveries.com.
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