Case Study

The organisation:

Our client is a leading design and manufacture consultancy for the retail environment.

The challenge:

We were approached to recover outstanding invoices dating back to August 2022. Despite the client's efforts to recover the large sum, there had been no engagement from the customer or resolution achieved.

The solution:

Due to the age of the debt, we recommended a fast-track pre-legal process to see if we could bring about a resolution without the need to litigation. However, the customer did not respond to these efforts. Our client agreed to send a 72-hour solicitor's Letter Before Claim, which again expired without a response. We advised the client that the best route for recovering would be to issuing Winding Up Proceedings against the company, as a tactic to gain payment. If successful in obtaining a payment plan, or full payment, the charges for the Winding Up Petition would be payable by the customer, and the client would therefore potentially recover any costs outlaid for the proceedings. Should it look like payment will not be reached before a Winding Up Hearing, then the client would have the option to withdraw the petition and would be refunded approximately £2500 of the Official Receiver's deposit. The other alternative was to issue a County Court Claim with a view to securing a County Court Judgment for the debt owed plus interest, compensation, costs, and fees incurred. However, the cost for this was triple the amount to issue Winding Up Proceedings. With these things considered, we advised the client to issue Winding Up Proceedings and the necessary paperwork was served.

The difference made:

As a result of the issuing of the Winding Up Proceedings our client's customer contacted us to advise that they would pay in full within the 7 business days we had specified in our communications, before the court hearing. The client received a payment of the full amount owed and the Winding Up Order was withdrawn. The client also received a refund of the official receiver's deposit for withdrawing the petition.

What they said:

We could not be more impressed with the thoroughly efficient, swift and professional service we received from Controlaccount. We would not hesitate to recommend them.