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LATEST NEWS & EVENTS Businesses opting for court action to settle debts  Small and medium-sized enterprises (SMEs) are often choosing to use a commercial debt recovery solicitor and take debtors to court, research shows. According to a study from commercial credit referencing agency Graydon UK, 55 per cent of businesses are opting for County Court Judgments to settle bad debts. Courts are becoming the preferred option to recouping money, as companies shy away from presenting winding up orders. The study also found 42 per cent of businesses are using third party debt collectors, while 39 per cent are opting to set up formal voluntary arrangements with debtors. Martin Williams, head of external affairs at Graydon UK, explained that while firms are taking a tougher approach to debtors, almost a quarter are not petitioning to wind up companies as a route to recovering money owed to them. "This indicates when it comes to the crunch and creditors start to turn the screws debtors can and do pay up," he added. Mr Williams indicated that the trend could be put down to the Time to Pay scheme freeing up cash for firms to pay creditors. Corporate insolvency body R3 recently suggested that this initiative was helping to stem the flow of SMEs going out of business. Rick Munro, head of dispute resolution at Lamport Bassitt, said that "those who take fast and decisive action generally recover considerably more than those who sit back and wait for other to do so". Posted by Paul Stevens 
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