Summary

It can be a long road to recovery

Like most things in life (and law), prevention is the best medicine. Working closely with our Business Advisory Team, we can provide you with contractual agreements such as terms of trade and that increase your collection rights if a customer does not pay or comes under formal financial distress such as being placed into administration or being declared insolvent.

We work with businesses to include a ‘retention of title’ clause in contracts whereby a customer does not own the title of the goods provided until the full amount has been paid. We ensure that if you are selling or renting out your goods, that they have been added to the Personal Property Securities Register in a compliant manner. Both tools are incredibly effective for recovering the debt or preventing the loss of goods.

For secured creditors, we work with you to pursue assets and guarantors, and help resolve priority contests between other creditors. We can advise you on terminating contracts if a customer defaults and determine a final cost that must be paid immediately – even if there was significant time left to pay according to the contract.

Given our experience in the property sector, we’ve also advised countless landlords on how to handle an insolvent tenant and served eviction notices on their behalf.

Your business needs to protect itself from things outside of its control – such as another business’ financial certainty and solvency. Contact Madgwicks for advice and tactics on minimising your business’ exposure.