Does it make a difference if my debtor is a large company or an individual?

Put simply, yes. When considering whether to pursue money owed to you, many of the factors listed above come into play depending on the debtor’s financial situation.

Things to consider:

• Individuals or small businesses are more likely to have financial difficulties – you should consider whether they will have the means to pay the debt even if you do win in court against them. In the case of individuals you should check to see if they own their own property. If they do you are much more likely to recover payment.
• Sole traders have personal liability for debts, so could be worth pursuing if they have significant assets. However, some company directors have been known to use the protection of limited liability in their favour to get out of paying what they owe.
• Large organisations may attempt to use their financial advantage against you, and threaten to take away their custom, routinely drag their heels in regards to payment, or prolong court disputes to dissuade smaller companies from taking action against them. It is also worth keeping in mind that the larger the organisation, the higher the likelihood that debt problems arise from internal communication issues. Helix Law specialises in helping SMEs take on bigger organisations and getting payment. We do this with expertise and a willingness to work on a no win no fee basis.