When someone owes you money whether it’s a customer, supplier, or another business knowing your rights as a creditor in the UK can make all the difference. If you’re a small business owner or finance manager trying to chase an unpaid invoice, understanding your legal position is key.
Here’s what you need to know about what you can do and what protection you have.
What does it mean to be a creditor?
A creditor is anyone who’s owed money by another party. You might be:
● A supplier awaiting payment for goods or services.
● A lender who’s extended credit.
● A landlord owed rent.
● An employee owed unpaid wages or redundancy.
Once there’s a legal obligation to pay and it hasn’t been met you’ve got a right to act.
Your rights before insolvency
If the person or business hasn’t yet entered a formal insolvency process, you have
several tools at your disposal:
● Send reminders and final demands to chase payment.
● Claim late payment interest and recovery costs, under the Late Payment of Commercial Debts (Interest) Act 1998.
● Take legal action, such as issuing a statutory demand (especially if the debt
is over £750 for companies & £5,000 for private individuals ).
● Start insolvency proceedings if the debt is substantial and unpaid.
If you would like to know more please call 0116 299 4745 or email info@springfields-uk.com
