What is commercial debt recovery and when should you use it?

• Cash flow challenge: Clients are overdue on payments and regular reminders aren't working. I want a clear and lawful way to recover what's owed without risking relationships or breaking the law.

• Perfect for: SMEs looking for the right balance between informal credit control and formal recovery methods in B2B settings.

Novuna supports SMEs in navigating both informal and formal debt recovery options. Whether you need to prevent late payment fallout or recover unpaid invoices, we compare our in-house solutions with trusted UK providers to find the best match for your business.

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What is commercial debt recovery?

Commercial debt recovery is the structured process businesses use to reclaim unpaid invoices from other businesses. This often involves:

• Friendly reminders and follow-up calls

• Formal written demands or a “letter before action”

• Negotiation of repayment plans

• Enlisting a debt recovery agency or legal support, including court action

This staged approach helps businesses recover money efficiently while staying compliant.

When should your business use it?

Begin with proactive credit control

Always start with clear payment terms and polite reminders. That catches many overdue payments before escalation.

Move to formal demand letters

Always start with clear payment terms and polite reminders. That catches many overdue payments before escalation.

Use commercial debt recovery when:

• Kicks in once invoices are overdue, even after reminders and finance attempts.

• Uses professional negotiation or legal follow-up to recover cash.

• Can strain or repair client relationships, depending on how smoothly it is handled.

Many SMEs enlist professionals at this stage. Debt recovery experts maintain the right tone and present clear steps that often secure payment while saving you time and stress.

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Why legal recovery might be needed

Some debts may need court enforcement through:

• A County Court Judgment (CCJ)

• Statutory demand or winding-up petitions

• Enforcement methods such as bailiffs or freezing debtor accounts

Court recovery can be effective, but it may also take time. That’s why some businesses prefer to combine recovery processes with short-term funding to protect cash flow while they wait for resolution.

How Novuna Business Cash Flow helps you

• Choose between gentle reminders or formal requests depending on the situation

• Access immediate invoice finance to neutralise the cash impact of delays

• Get expert debt recovery support when needed - managed with care and compliance

Our goal is to recover your money without disrupting operations or client relations.