Partner Article

Getting businesses their due: How Muckle’s commercial debt recovery team is protecting cash flow

Muckle LLP
www.muckle-llp.com
LinkedIn: Muckle LLP

With late payments continuing to halt organisations’ progress, law firm Muckle LLP’s expert debt recovery team is ensuring more companies are securing monies owed to protect their financial positions and support growth plans. Here, Colin Churchward, the firm’s head of commercial debt recovery, and associate solicitor Amy Carlton tell N magazine how its market-leading support is helping clients overcome payment challenges, unlock growth and build long-term success.

Healthy cash flow is the engine of any successful business.

For the approximately 166,000 small and medium-sized enterprises operating across the North East, timely payments are a key factor in enabling businesses to reinvest, expand and innovate.

As rising levels of late payments drive increased demand for debt recovery support, leading law firm for businesses Muckle LLP has significantly invested in its commercial debt recovery team, strengthening its ability to provide businesses with expert, strategic support.

Ranked Tier 1 by the Legal 500 for more than 20 years, Muckle’s commercial debt recovery team has welcomed paralegals James Daggett and Chloe Base to an eight-strong team. It is actively recruiting for two additional roles.

This ongoing investment reflects the clear market need for businesses wanting expert, commercial advice to handle collections efficiently before they impact the bottom line.

According to data published by London Economics, 14,000 businesses close each year as a direct result of late payments.

With recent figures showing late payment times rose by up to five per cent in the first quarter of the year alone in the region, protecting cash flow has never been more critical.

Rather than viewing debt recovery as a negative last resort, forward-thinking business owners are increasingly treating it as a proactive commercial strategy, partnering with Muckle to achieve long-term business resilience.

Colin Churchward, Muckle’s head of commercial debt recovery, believes early intervention and preparation are the best ways to cut through the noise.

He says: “Late payments are on the rise and cash flow is critical, especially for SMEs.

“Figures show businesses are spending up to 86 hours a year chasing payments themselves.

“That is valuable time that could be handed over to professionals, allowing business owners to focus on what they do best – running and growing their company.”

Colin also highlights the importance of taking preventative steps, with Muckle’s commercial team working closely with clients to ensure terms, conditions and commercial contracts are watertight long before an invoice is ever issued.

Colin says: “When a business’ terms and conditions are solid, they have a clear legal basis for recovering unpaid debts.

“Many businesses are unaware there is legislation that entitles them to claim statutory interest and compensation on overdue invoices, helping to offset some of the costs of recovering outstanding debts.

“Furthermore, the new Commercial Payments Bill, which is going through Parliament, aims to transform how relationships are managed.

“The bill will tackle late payments between businesses and improve the flow of cash through supply chains, introducing mandatory payment terms and aspects such as reporting obligations, which will hopefully improve cash flow across the board.”

Understanding the legal options available is only part of the solution: having the right support to act on them is equally important.

Muckle offers unique in-house technology, which provides a pragmatic approach to disputed debts.

Colin says: “We take a highly informed, data-driven approach.

“We have an in-house tech system that allows clients – such as large utility companies with high volumes of work – to log in, check on debts and see the best strategy forward.”

Associate solicitor Amy Carlton, who leads the defended debt recovery disputes arm of the team, believes Muckle’s strategy successfully balances recovery with relationship preservation.

While many firms outsource disputed debts, Muckle handles them entirely in-house.

This seamlessly provides cost efficiencies for the client and ensures continuity of knowledge at every stage of the journey.

Amy says: “By handling our clients’ bulk debt recovery work, we develop a deep understanding of their businesses and customer relationships.

“So, if a debt becomes disputed, there’s no relearning process; we already have the background knowledge needed to manage the matter seamlessly.”

Amy adds: “We’re a law firm, so we understand the importance of protecting clients’ commercial relationships.

“We have a high recovery rate, and part of that success is because we take a client-led approach; we don’t want to damage their hard-earned customer ties by being heavy-handed.

“Maintaining a healthy working relationship is often just as important as recovering the funds.

“We’re one of the leading specialists in high-volume litigation, and clients trust us to handle complex and large-scale matters with confidence.”

Supporting a wide array of sectors from construction and professional services to private schools and utilities, Muckle has spent decades advising innovative businesses.

Such commitment to the region from a longstanding North East firm was recently cemented with the opening of a permanent Teesside office at Boaz House, in Stockton-on-Tees, which has joined existing base in Newcastle and Penrith.

Colin adds: “The landscape of commercial debt recovery is changing; it is no longer just a reactive measure, but an essential pillar of financial health.

“For SMEs across the North East, the lesson is not to wait for a late payment to become a complex dispute.

“By engaging with a trusted commercial adviser early and ensuring your contracts are airtight from day one, you can minimise risk and preserve vital customer relationships, while cash flow continues to fuel a business’ growth.”

To learn more about Muckle and its expert debt recovery services, visit the website at the top of this article or email head of commercial debt recovery Colin Churchward at colin.churchward@muckle-llp.com 

This was posted in Bdaily's Members' News section by N Magazine .