Research from the Credit Services Association (CSA) suggests that British businesses are resorting to the courts at an early stage in order to recover debts. This is despite the fact that taking such action is likely to destroy business relationships.

The CSA’s representative Godfrey Lancashire commented that, ‘Businesses want their cash and see litigation as the fastest way of getting it. Before a debt collection agency would have several weeks to achieve a result, now they are often being instructed to go legal within a matter of days.’

This approach may have implications as Godfrey Lancashire explained ‘the majority of debts are recoverable without having to resort to the courts, without the additional costs and without, therefore, jeopardising future relationships with customers.’

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