We recently published an article with information about how processing debt claims will change under the new Pre-Action Protocol. The Protocol applies to all debt claims where a business is claiming payment of a debt from an individual irrespective of the value of the debt.
Now we’re sharing how to avoid delays within the new process. It is important to start putting written agreements in place to safeguard your position and it is vital to identify your customer from the outset to avoid delays later down the line. Many businesses do not know who the person responsible is behind their customer if the business is a ‘firm’.
If your customer is not a limited company or LLP, do not be afraid to ask who owns the business and/or the name of the partner(s) for your records.
We list below example entities:-
- Sole Traders / Individuals
- i.e. Andrew Person (individual)
- or, Andrew Person t/a ABC Services
- ie. two or more partners carrying out business
- Historically, professional practices have usually been partnerships. All partners are jointly and severally liable for the liabilities of the partnership to third parties in equal proportions unless the partnership deed provides otherwise.
- Limited Liability Partnership (“LLP”)
- A LLP is a corporate body having a separate and distinct legal personality from its members (often confusingly described as partners). The members are not liable as partners are and they have limited liability afforded to them.
- ie. ABC UK LLP
- A limited company registered with Companies House
- ie. ABC Services Limited or, ABC Services Plc