Effective Debt Recovery for a London-Based IT Firm
Apr 02, 2025
In May 2020, a software and information technology service company based in London entered into a software licence and support agreement with an Emeriti state-owned financial institution. The contract outlined clear payment terms, requiring all invoices to be settled within 30 days. However, following the institution’s formal termination notice in October 2022, a significant balance of £102,491.25 remained unpaid, including early termination charges.
Our Approach
The collection process commenced in July 2023 when we were formally engaged to recover the outstanding debt. Initial communications revealed that delays were primarily due to the institution’s internal legal procedures and a reluctance to authorise payments through third parties. Despite these challenges, we maintained steady pressure, leveraging the legal clauses within the contract while highlighting the accumulating statutory interest.
Recognising the bureaucratic complexities involved, we worked closely with our client’s finance team to ensure all required documentation was provided in compliance with federal regulations. As the institution continued to delay, we escalated our approach by calculating and presenting additional interest charges, emphasising the potential legal ramifications of continued non-payment under English law. This led to the total outstanding amount increasing to £112,737.88, including penalties.
Resolution
Through consistent engagement and strategic negotiation, the financial institution confirmed direct payment to our client in September 2023. While the funds were transferred directly to the client, we remained the driving force behind the successful resolution, handling the case with professionalism, persistence, and legal precision.
Why Our Approach Works
This case demonstrates our expertise in handling complex, high-value B2B debt recoveries, particularly when dealing with government entities and intricate international contractual frameworks. Our ability to navigate bureaucratic obstacles and enforce contractual obligations ensures that our clients recover what they are owed efficiently and effectively.
Get Expert Commercial Debt Collection Assistance
If your business is facing unpaid debts, our Commercial Debt Collection Service can help. We implement a structured 30-day Chase Campaign, featuring weekly emails and daily calls to debtors. If the debt remains unpaid within this period, we provide legal support to escalate the matter. Contact us today to find out how we can help you recover outstanding payments swiftly and professionally.
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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