Recovering Business Debts during Coronavirus
Recovering Business Debt during Coronavirus
New Emergency Business measures have been revealed that will restrict recovering business debts during the Coronavirus pandemic. Yesterday, details of the expedited measures to ‘protect’ companies were reported in a shock move by the Department for Business.
The New measures purport to include preventing Court Action to recover Business Debt and a ceasing of all winding-up orders. Business Secretary Alok Sharma is to be allocated new powers to ‘help’ Company Directors.
Any Legal Action to recover Debts owing will need ‘special permission’ from the Courts. This could prove to be extremely costly in all aspects. Any current winding-up orders against companies for unpaid debts will be rescinded. Statutory Demands are also to be rendered void with immediate effect. This will severely hamper Companies that are trying to recover unpaid Business invoices and accounts.
There is also to be some kind of immunity given to Directors who have personal liabilities. Directors will also be given protection against any ‘wrongful trading‘ under the new emergency proposals.
Revealed were also plans to force suppliers to continue to supply cash stricken companies even if they have failed to pay outstanding invoices. All these measures are short term and designed to protect jobs and the economy during this Covid-19 emergency.
Rather than a minority of companies being at risk, it would appear these plans intend to put more Businesses at risk. We feel that unscrupulous chancers could seek to take advantage of the Governments goodwill. There needs to be a tighter reign on this to protect innocent Businesses and the tax-payer.
Many UK Small Businesses and SME’s are taking massive hits due to the current pandemic. A massive spike in Unpaid Business invoices has left millions of UK Businesses at risk of collapse. Not being able to take Legal Action to recover business debt will hit many hard.
Handcuffing those Small Businesses that are trying to work through this Covid-19 outbreak cannot be good for the economy. Fortunately, there is a solution to assist UK Businesses.
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Despite the new emergency measures, Action can still be taken to collect Unpaid Business Invoices. Recovering Business Debts is still a daily objective for our Commercial Recovery team. Less than 1% of the Business Debt Collection cases we deal with require Legal Action to recover debts.
If your business is owed money in the current climate, contact us today for help and advice. These are times of uncertainty but we are here to help. Recovering Debts during this Coronavirus pandemic is a difficult task but we are navigating these stormy waters. There is help available to you so call our friendly team now.