In simple terms, a Letter Before Action (LBA) (also known as a Letter of Claim), is a formal letter requesting payment of a debt owed to your business. It warns your Debtor that failure to pay will result in the imminent issue of Court proceedings and further enforcement action. It clearly sets out the amount to be paid and a timeframe for clearing the debt, which is usually seven days.
It is reassuring to know that an LBA can be sent for as little as £12.50 using Debt-Claims’ online Debt-Claims portal, and most debts are cleared at this stage of the process with no further action.
An alternative course of action at this stage could be a Late Payment Demand, in which the debt owed is requested. The Debt-Claims team will advise you on the best course of action.