UK Commercial Debt Collection: Post-Brexit B2B Recovery Guide

In England & Wales, the limitation period for contract claims is 6 years from the date of breach. In Scotland, it's 5 years. Northern Ireland follows similar rules to England & Wales. Time starts running from when the debt became due. Early engagement preserves the widest range of options and maximizes statutory interest claims.

Yes. The Late Payment of Commercial Debts (Interest) Act 1998 gives B2B creditors the right to claim interest at 8% above the Bank of England base rate on overdue invoices, plus fixed compensation (£40 for debts under £1,000, £70 for £1,000-£9,999, £100 for £10,000+). This applies automatically to commercial contracts unless different terms were expressly agreed—and even then, alternative terms must be "substantial remedy" or they may be unenforceable.

Brexit eliminated several EU mechanisms: the European Payment Order is no longer available, EU judgments don't automatically enforce in UK, and vice versa. However, UK courts remain accessible to international creditors, common law procedures are well-established, and the legal system is efficient. The path to enforcement changed—requiring UK-specific procedures rather than EU shortcuts—but UK remains a viable jurisdiction for commercial debt recovery.

The UK has three distinct legal jurisdictions: England & Wales (most commercial cases, 6-year limitation period), Scotland (separate legal system with 5-year limitation, different court procedures), and Northern Ireland (similar to England & Wales). Which jurisdiction applies depends on where the debtor is registered and any jurisdiction clauses in your contract. Getting this wrong can cause procedural delays or invalid proceedings.

UK courts are efficient by international standards. Undefended claims can result in default judgment within weeks. Defended claims typically take 6-12 months through County Court, potentially longer for High Court matters or complex disputes. Pre-Action Protocol compliance is required—parties must exchange information and attempt settlement before proceedings. Most successful UK collections resolve through structured negotiation rather than full trial.

Key documentation for UK commercial debt collector engagement includes: signed contract or purchase order with payment terms, invoices, service acceptance or delivery confirmation, payment history/statement of account, and correspondence showing debt acknowledgment. UK common law courts are evidence-focused—complete documentation packages significantly strengthen both negotiation leverage and court positions.

"Cash flow issues" is among the most common UK payment delay explanations—particularly from startups and SMEs. It can mean genuine temporary constraints, or strategic payment prioritization, or early warning of insolvency. Effective collection distinguishes between these scenarios through structured follow-up, documented payment commitments, and financial status verification where appropriate. Early engagement matters—"cash flow issues" that persist beyond 90 days often signal deeper problems.

Companies House provides free access to filed accounts, confirmation statements, and director information for UK companies. Credit reference agencies (Experian, Dun & Bradstreet, CreditSafe) offer more detailed financial assessments. Check for County Court Judgments (CCJs) already registered against the company. Look for signs of distress: late filings, director resignations, registered charges, or winding-up petitions. Early verification prevents collection effort on uncollectable accounts.

Our UK business debt collection services cover major B2B sectors including: financial services and fintech, professional services (legal, accounting, consulting), technology and software, manufacturing and industrial, construction and real estate, and creative industries. Each sector has specific documentation patterns and collection dynamics we've navigated across thousands of UK commercial files.

Recovery outcomes depend on multiple factors: documentation quality, debtor solvency, invoice age, dispute status, and jurisdiction complexity. We don't quote blanket "success rates" because every UK file has unique characteristics. What we can confirm: files with complete evidence packages, clear acceptance documentation, and early engagement (under 90 days overdue) consistently outperform files with documentation gaps, disputed scope, and extended aging. Our initial assessment identifies where your specific case falls on the recovery probability spectrum.