How to Collect Debt From a Business That Repeatedly Refuses to Pay What They Owe
At the start of the Covid Pandemic in the UK early 2020, companies started owing each other money left, right and centre…
Jul 09, 2025
Unpaid invoices are an unfortunate reality for many businesses. When a debtor repeatedly delays or outright refuses to pay what they owe, the situation can quickly escalate from frustration to financial strain. This is where specialist debt recovery expertise can make all the difference.
At Payfor, we help businesses of all sizes recover what is rightfully theirs, even in the most challenging circumstances. This case study demonstrates how we successfully assisted a UK construction firm in securing payment after months of non-payment by their debtor.
A Large Unpaid Debt Threatens Business Stability
In early 2020, as the Covid-19 pandemic disrupted the UK economy, many businesses began facing cash flow issues. One such business was a construction firm that turned to Payfor for help when they were left unpaid for completed work worth £45,000. This was the largest unpaid invoice the company had ever encountered, and it placed considerable strain on their operations and day-to-day cash flow.
The debtor, a Scottish company, had refused to settle the invoice for more than three months, citing the pandemic’s financial impact as justification for the delay. Our client had tried chasing the payment multiple times but with no success. They felt stuck, with no clear way forward.
How Payfor Approached the Situation
After a swift and seamless onboarding process, our operations team immediately began analysing the details of the case. We reviewed the contractual agreements, payment history, and all previous communications to build a full picture of the dispute. This crucial step ensures that our recovery strategy is not only legally sound but commercially astute.
With the groundwork complete, we launched our structured 30-Day Chase Campaign, a process involving daily communication through calls and formal emails. This is designed to create consistent pressure while giving the debtor an opportunity to engage constructively.
Despite our client’s previous unsuccessful attempts, we applied our specialised approach, ensuring all communication remained professional, well-calibrated, and legally informed. Unfortunately, in this case, the debtor remained unresponsive even after multiple attempts, confirming that escalation would be necessary.
When Legal Action Becomes the Right Step
In some instances, when amicable resolution is not possible, legal action becomes the most effective route. Payfor arranged for the case to be assessed by one of our trusted London-based law firms, who provided a free appraisal and outlined actionable next steps. This included the preparation of a formal letter before action and readiness to issue legal proceedings if required.
Payfor Tip: Be cautious of collection agencies or legal firms that request upfront fees just to provide an initial appraisal. This should typically be offered without charge.
With the legal strategy in place and our client’s approval secured, proceedings were issued swiftly.
A Fast, Fair Settlement
The initiation of legal proceedings brought about a quick change in the debtor’s stance. Faced with formal legal pressure, the Scottish company came forward with a substantial settlement offer, including payment of the principal debt and associated costs. Our client accepted the settlement, bringing the matter to a successful conclusion.
Not only was the client able to recover the bulk of the money owed, but they also avoided a lengthy legal battle that could have consumed time, energy, and further financial resources.
Why Businesses Trust Payfor in Difficult Situations
Recovering commercial debts is often about more than just persistence. It requires a clear understanding of commercial relationships, legal frameworks, and the right timing for escalation. At Payfor, we act not just as debt collectors, but as commercially minded intermediaries who know how to apply pressure effectively without unnecessary aggression.
We understand when to negotiate, when to escalate, and when to pursue legal action decisively. Our global network of legal partners allows us to act across jurisdictions, and our clients benefit from transparent advice and dedicated case management at every stage.
Do You Have an Unpaid Business Debt?
If your company is facing a similar situation, where a debtor repeatedly refuses to pay what they owe, Payfor is here to help. We offer strategic debt recovery solutions tailored to your circumstances, whether through negotiation or legal recovery.
Contact Us today!
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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