There would appear to be a reluctance to chase down debts, in many cases significant debts over £100,000, because many believe that there is little hope of recovery and therefore no action is taken. But all recovery options should be considered and not be immediately discounted.
Grant Thornton Fraud Insolvency Division (FInD) are experts in asset tracing and recovery in cases where there would appear to be no obvious assets available from the outset for the benefit of creditors but where information would suggest that assets may have been removed prior to any insolvency proceedings.
When asked how much money their business had written off in unpaid debts in the previous financial year, around one in five SMEs said that they had written off debts at an estimated average loss of £31,330. However, almost one in ten of these SMEs claimed to have written off debts in excess of £100,000.