Debt Recovery Training for SMEs

Why Debt Recovery Training Matters

For most SME owners and managers, the court system feels like foreign territory. The procedures are unfamiliar, the terminology is specialised, and the fear of getting something wrong can be paralysing. The result? Outstanding debts go uncollected, legal action is delayed, and viable claims are abandoned simply because nobody in the business knows how to pursue them.

RCU’s debt recovery training programmes are designed to change that. They give SME teams the knowledge, skills, and confidence to take control of their outstanding debts, from issuing a claim all the way through to enforcement.

The 8-Week Course

RCU’s flagship training programme is an 8-week structured course consisting of six teaching modules and two dedicated Q&A sessions. Each module focuses on a specific stage of the debt recovery process, building knowledge progressively so that participants finish the course with a complete understanding of the journey from unpaid invoice to successful recovery.

Sessions run between 90 minutes and 2.5 hours depending on the module, and the course is available as a complete package or as individual modules for teams that need to focus on specific areas.

Module 1: Preparing and Issuing Claims

The first module covers the mechanics of starting court proceedings, the step that many businesses find most daunting. By the end of this module, participants will understand:

What You Will Learn

• How to prepare a claim: What information you need before you start, including gathering evidence, calculating the amount owed, and identifying the correct defendant.
• Completing the claim form: A step-by-step walkthrough of the court claim form, including common pitfalls that lead to claims being rejected or delayed.
• Late payment fees and interest: Your statutory right to charge interest on overdue commercial debts under the Late Payment of Commercial Debts Act, and how to calculate and include these amounts in your claim.
• Court fees: What fees you will need to pay to issue a claim, how to pay them, and how they are recovered from the debtor.
• Avoiding strike out: Procedural requirements that must be followed to keep your claim alive. Failure to comply with court directions or deadlines can result in your claim being struck out, meaning it is dismissed and you may not be able to bring it again.

Module 2: Obtaining Judgment

Once a claim has been issued, the next question is: what happens when the debtor responds, or does not respond? This module covers the different routes to obtaining a judgment.

What You Will Learn

• Default judgment: The most common outcome, since approximately 85% of money claims go undefended. When the debtor fails to respond within the time allowed, you can apply for judgment without a hearing. This module explains the process and the paperwork involved.
• Judgment on admission: What happens when the debtor admits they owe the money but wants to pay in instalments or at a later date. How to respond to an admission and how the court decides on payment terms.
• Summary judgment: An application you can make when the debtor has filed a defence but you believe they have no real prospect of successfully defending the claim. Summary judgment allows the court to decide the case without a full trial.
• Defended cases: What to do when the debtor files a genuine defence. How the case progresses, what the court expects from both parties, and the key decisions you need to make.

Module 3: Dealing with Admissions and Defences

When a debtor does engage with the court process, things become more complex. This module prepares participants for the scenarios that arise when claims are contested.

What You Will Learn

• Assessing a defence: How to read and understand a defence filed by the debtor, and how to identify whether it raises genuine issues or is simply a delaying tactic.
• Preparing witness evidence: What makes effective witness evidence, how to structure a witness statement, and what the court expects in terms of format and content.
• Directions and case management: The procedural steps the court will order both parties to follow before trial, including disclosure of documents, exchange of witness statements, and pre-trial reviews.
• Trial preparation: How to organise your case for trial, including assembling a trial bundle, preparing your witnesses, and understanding the trial timetable.

Module 4: Enforcement

Obtaining a judgment is only half the battle. If the debtor still does not pay, you need to enforce the judgment. This module provides a comprehensive overview of the enforcement methods available and how to choose the right one.

What You Will Learn

• Warrant of Control (County Court): Using County Court bailiffs to seize goods. When this is appropriate and what its limitations are.
• Writ of Control (High Court): Transferring the judgment to the High Court for enforcement by an HCEO. Why this is generally the most effective option for commercial debts over £600.
• Attachment of Earnings Order: Requiring the debtor’s employer to deduct payments from their wages. Only available where the debtor is an individual, not a company.
• Third Party Debt Order: Freezing money held in the debtor’s bank account and having it paid directly to you. How to apply for this order and what information you need.
• Charging Order: Securing the debt against the debtor’s property (typically their home or business premises). This does not give you immediate payment but protects your position if the property is sold.
• Debtor questioning (Order to Obtain Information): Requiring the debtor to attend court and answer questions about their assets, income, and financial position. This helps you decide which enforcement method is most likely to succeed.
• Selecting the best method: How to assess the debtor’s circumstances and choose the enforcement method most likely to result in payment.

Module 5: Small Claims Mediation

Since May 2024, mediation has been mandatory for all defended small claims (claims up to £10,000) before they can proceed to a hearing. This module explains what mediation involves and how to approach it.

What You Will Learn

• The mandatory mediation requirement: Why mediation is now compulsory for small claims, and what happens if you refuse to engage with the process.
• Risks and sanctions: The potential consequences of failing to participate in mediation in good faith, including adverse costs orders.
• How mediation works: The role of the mediator, the format of the session (typically conducted by telephone), and the time allowed.
• Preparation: How to prepare for mediation, including knowing your bottom line, understanding the strengths and weaknesses of your case, and having relevant documents to hand.
• Settlement and outcomes: What happens if you reach an agreement in mediation, and what happens if you do not.

Module 6: Evidence and Trial

If mediation does not resolve the dispute (or if the claim is too large for small claims mediation), the case proceeds to trial. This final teaching module prepares participants for the courtroom.

What You Will Learn

• Witness statements: Detailed guidance on drafting witness statements that are clear, factual, and persuasive. What to include, what to leave out, and how to deal with difficult points in your case.
• The trial bundle: How to assemble the bundle of documents that will be placed before the judge. What goes in, how it should be organised, and common mistakes to avoid.
• Trial etiquette: Practical guidance on how to conduct yourself at trial: how to address the judge, when to stand, when to speak, and what to do if you are asked something you do not know.
• Managing expectations: An honest assessment of what trial involves, how long it takes, and the range of possible outcomes. Not every case results in a clear-cut win, and understanding this helps participants make informed decisions about whether to proceed to trial or settle.

Q&A Sessions

The two Q&A sessions are spaced throughout the course and provide dedicated time for participants to raise questions, discuss scenarios from their own businesses, and clarify anything covered in the teaching modules. These sessions are often where the most practical learning happens, as participants work through real-world situations with expert guidance.

Intensive One-Day Course

For larger businesses that need to train teams quickly, RCU offers an intensive one-day programme that covers the essential stages of debt recovery in a single session.

Format

• Duration: 10am to 4pm (full day).
• Follow-up: Includes a 60-minute virtual advisory session within 60 days of the course, allowing participants to discuss real cases and challenges that have arisen since the training.

What the One-Day Course Covers

The intensive programme condenses the key elements of the 8-week course into a focused single-day format:

Pre-Legal Requirements and Pre-Action Protocol

Before issuing court proceedings, there are specific steps you must follow, including sending a Letter Before Action and complying with the Pre-Action Protocol for Debt Claims. This section covers what is required and why failing to comply can have serious consequences for your case.

Taking Legal Action

A practical overview of issuing a claim, completing the claim form correctly, and navigating the court process from issue to judgment.

Routes to a County Court Judgment

The different ways you can obtain a CCJ (default judgment, judgment on admission, and summary judgment) and when each route is available.

Enforcement Procedures and Fees

A guide to the main enforcement methods, with particular focus on High Court Enforcement as the most effective route for commercial debts. This section includes a detailed walkthrough of the HCEO fee structure so that participants understand the costs involved at each stage.

Key Statistics

The one-day course emphasises that 85% of money claims issued at court go undefended, resulting in a straightforward default judgment. This statistic is important because it demonstrates that formal legal action is often far less contentious than businesses fear.

Choosing the Right Programme

Feature	8-Week Course	One-Day Intensive
Best for	SME teams building in-depth capability	Corporate teams needing rapid overview
Duration	6 modules + 2 Q&A (90 min - 2.5 hrs each)	Full day (10am - 4pm)
Depth	Comprehensive, covers every stage in detail	Focused overview of key stages
Follow-up	Q&A sessions built into the programme	60-minute virtual advisory within 60 days
Flexibility	Available as complete package or individual modules	Single session

Practical Benefits

For Business Owners

Understanding the debt recovery process removes the mystery and anxiety that often prevents businesses from taking action on unpaid invoices. Once you know how the system works, you can make informed decisions about which debts to pursue and how to pursue them.

For Credit Control Teams

Frontline credit control staff benefit from understanding what happens after their collection efforts are exhausted. Knowing that a Letter Before Action carries real weight, that court proceedings are straightforward for undefended claims, and that enforcement is effective gives them confidence in the escalation process.

For Finance Directors

A structured approach to debt recovery, supported by trained staff, reduces bad debt write-offs, improves cash collection metrics, and provides clear escalation paths for problem accounts.

Getting Started

Whether you are an SME owner dealing with unpaid invoices for the first time or a finance team looking to sharpen your recovery processes, RCU’s training programmes provide the knowledge and practical skills you need.

Contact us to discuss which programme suits your business, or to arrange a tailored session for your team.