When a Strong Contract Isn’t Enough: Navigating a Disputed £35K Recruitment Debt
Apr 22, 2025
A UK-based technology recruitment firm provided candidate placement services to a US-based cybersecurity company under a signed agreement. The work was completed and the invoices issued in full, totalling $35,050.00. However, despite contractual obligations and successful placements, the client delayed payment and eventually disputed a portion of the fees—specifically contesting the second candidate's validity and rejecting associated collection costs.
With the matter dragging on for months and payment still outstanding, the recruitment firm turned to Payfor Ltd to step in and bring it to resolution.
Escalation and Pushback
Recovery proceedings began in July 2023. Payfor Ltd promptly reached out to the cybersecurity company’s finance leadership and began negotiating on the basis of the signed agreement. While the debtor accepted part of the liability, they objected to the total figure, citing internal confusion and service-related disagreements. A proposed settlement of just $13,000.00 was initially offered—significantly below the invoiced amount.
Negotiations became increasingly tense. Both sides raised the possibility of legal action, and commercial pressure mounted. Internally, the recruitment firm debated whether pursuing litigation would be financially viable or strategically wise.
Reaching a Commercially Sensible Settlement
After extended discussions and careful consideration of the practical and legal limitations, the parties reached a final settlement of $14,300.00 in August 2023. Though less than half the original claim, the recruitment firm agreed to the terms, choosing a guaranteed resolution over the uncertain costs and delays of a drawn-out legal battle.
Payfor Ltd facilitated the payment plan and confirmed closure once the final instalment was received. The case was resolved without the need for litigation, though not without compromise.
Lessons from a Contentious Recovery
This case highlights the inherent complexities of recruitment-based B2B debts. Even when clear contracts exist, earlier compromises or service disputes can impact enforceability. Payfor Ltd’s involvement provided both clarity and leverage in navigating a contentious claim—securing a pragmatic outcome when the full recovery wasn’t commercially realistic.
If your business is chasing overdue recruitment or commercial invoices, our 30-Day Chase Campaign is designed to convert silence into settlement. We initiate recovery with weekly emails and daily calls to the debtor. If that doesn’t lead to resolution, we’ll support you through legal escalation and guide you every step of the way.
Let Payfor Ltd help turn your overdue accounts into resolved revenue—efficiently, globally, and strategically. Talk to us and learn about your options.
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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