Legal issues
Key issues include identifying the correct company, contract formation, authority, performance, invoice due dates, set-off or counterclaim, interest, limitation and the company's current legal status.
If the company cannot pay, ordinary enforcement and insolvency remedies have different consequences. A winding-up petition is not a substitute for deciding a substantial dispute.
Evidence that matters
Keep the contract, company number, purchase orders, invoices, delivery notes, statements, completion records, correspondence, admissions, payment history and any personal guarantee or security documents.
Reasonable lines of enquiry
Check Companies House for the exact legal name, registered office, status, charges and recent filings. Identify trading premises and apparent assets. Confirm whether the debt is disputed and whether any director gave a separate personal guarantee.
Before issuing, assess whether a judgment is likely to be enforceable against the company or whether insolvency evidence changes the commercial strategy.
What happens next
The creditor normally sends a compliant pre-action demand. If payment is not made, a County Court money claim may follow. After judgment, the creditor can select an enforcement remedy based on assets. For a clear undisputed debt and an apparently insolvent company, statutory-demand or winding-up procedures may be considered where legally appropriate.
Immediate steps
Verify the company number and registered office, assemble the contract and invoice evidence, calculate the exact balance and check whether the company is active, insolvent or already subject to formal proceedings.
What should you send us?
Send the company details, contract, invoices, statement, proof of supply or completion, correspondence, payment history, dispute documents and any guarantee or security.