PDT’s debt recovery team successfully collects £1.2 million
Published: 27 February 2023
Led by Gina Hope, our team of debt recovery experts have successfully assisted one of our invoice finance clients in recovering over £1.2m. Our client was financing the sales of a well know glazing company which supplied windows, doors, roofs and conservatories to customers throughout the United Kingdom. Having suffered a significant downturn in business due to the Covid pandemic it was forced into Administration leaving our client the difficult job of collecting in outstanding monies owed to it by over 150 customers.
In situations like this it can be very difficult to find all the necessary paperwork to evidence the amount owed by the customer. It’s also common for customers to dispute the amount owed, to make counterclaims that the contract with their supplier was not completed in accordance with the contract terms, or seek to deduct monies which they claim are due to them. Some customers sought to rely on the restrictions on enforcement action in the Corporate Insolvency Governance Act 2020 in a bid to prevent action being taken against them and thereby avoid or delay payment.
Despite the number of issues which threatened the collectability of outstanding invoices, to achieve the best outcome possible we sought to engage with customers in a non-confrontational manner focussing on front-loading evidence with detailed letters of claim and entering into early settlement negotiations and a series of online mediations.
As a result of our work, which took two years to complete, we successfully recovered over £1.2m for our client without having to issue expensive legal proceedings through the courts. As a consequence, our client was able to significantly reduce the amount owed to it without incurring significant legal costs.
Our client commented: “PDT’s expertise in challenging debt recovery scenarios ensured that the recoveries in relation to this exposure were maximised despite the unprecedented restrictions arising due to Covid 19, whilst their debt recovery team ensured prompt resolutions were achieved avoiding the incurrence of unnecessary legal expenses. The level of recoveries achieved under these difficult circumstances reaffirms why PDT remain our preferred supplier for dispute management and debt recovery.”
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