Fintech company Ormsby Street, states that two thirds of letters of claim sent by Solicitors will result in invoices being paid within seven days. By contrast, if no such letter is sent, two thirds of overdue invoices will remain unpaid after one month.
The figures are taken from a survey of 30,000 Ormsby Street customers. On average, invoices sent by businesses with a turnover of less than £5m a year take 72 days to be paid.
Keith Parr, Partner and Head of Dispute Resolution, said: “A well worded letter of claim sent by a professional and reputable firm of solicitors has a significant impact in bringing payment to the fore and whilst going to court should be a last resort, having a letter of claim sent is a highly effective method of retrieving payment on overdue invoices”.
He added “For any small business already suffering from late payment, this is a great way to indicate to customers that you are on top of your business and that you expect to be paid on time.”
For further information on dealing with an unpaid debt please call 01524 386500 or click here.
