This is latest in a series of monthly legal columns by Grantham-based multi-service law firm JMP Solicitors. Established in 2000, JMP provides services for a diverse range of local and national clients from individuals, to companies and organisations.

Here JMP Solicitors' commercial solicitor Robert Cox considers how businesses can maintain a vital healthy cash-flow.

For anyone involved in the running of a business, the importance of a healthy cash-flow doesn't need to be emphasised. 

However, many organisations require business-to-business relationships that rely on credit arrangements and therefore, companies may often need to wait a number of weeks, or months, to receive money the business is entitled to.

Whilst these outstanding debtors may look good on the balance sheet, they bring little relief to front line day to day operations. 

It is a harsh reality that businesses would be naïve to expect to recover 100% of money owed to them in credit agreements on time and unfortunately, a delay in debtor payments can be more than just a little inconvenient; a poor cash-flow can cripple a business.

If your company is owed money in the course of its business, you may not only be entitled to recover these through legal proceedings, but also claim the interest and late payment compensation on outstanding sums.

If the outstanding debt is over £10,000 then the debtor may additionally be required to pay for any legal fees incurred in the recovery of these sums.

At JMP Solicitors, we understand that business relationships are crucial, and each circumstance requires a different approach; from a friendly nudge to remind debtors that the money is due to pursuing the debt through court proceedings and recovering the money through enforcement methods if necessary.

We understand that speed is critical when pursuing these matters and we work relentlessly to make sure clients are able to operate effectively, minimising any disruption to business cash-flow.

If your business is having difficulty with outstanding debts and you require legal advice, please get in touch with Robert for a free initial consultation on 0800 085 9966, or email [email protected].