Let the Money Do the Work: A Smarter Approach to Credit Control and Debt Recovery

Let The Ball Do The Work

When I was younger, I was a fast sprinter. Speed was my strength—I excelled in sports that rewarded it. Football, however, was a different story.

I wasn’t technically gifted. Instead of playing smart, I would waste energy running around like a headless chicken chasing the ball. I didn’t score many goals because I worked harder than the ball itself.

My football coach used to say:

“Let the ball do the work.”

That advice has stayed with me—and it applies perfectly to business:

Let the money do the work.

Put the Right Systems in Place

Too many businesses waste time, energy and cost chasing money that should have been secured from the outset.

The key is simple—prevention, not reaction.

  • Do not offer credit without a completed credit application and proper checks
  • Know exactly who you are dealing with (company, sole trader or franchise owner)
  • Monitor your key accounts
  • Have clear, enforceable terms and conditions

If you get this right, you avoid the need to chase money in the first place.

The £1,150 Rule

Before issuing legal proceedings, consider the true cost and risk of recovery—particularly for debts between £500 and £1,000, where the economics are most unforgiving.

At first glance, issuing a claim looks inexpensive:

  • Court issue fee: ~£70

If the claim is undefended and the debtor pays following judgment, then in simple terms—happy days. The process is quick, the court issue fee is recoverable and depending on how the claim is handled, likewise are fixed costs, meaning the claim can effectively pay for itself.

But that is the best-case scenario.

When It Becomes Expensive

If the claim is defended, costs increase immediately:

  • Add hearing fee: ~£85
  • Representation: from £275 + VAT

Then factor in:

  • Preparation time
  • Administrative cost
  • The value of your time and internal resource

Whether you run a small business or a larger organisation, time and resource are not free. Every hour spent on a claim is time taken away from revenue-generating activity or higher-value matters.

You are quickly committing £500–£600 in cost, time and resource, and crucially:

👉 Most of these costs are irrecoverable on the small claims track

Enforcement Risk

Even if you obtain judgment, recovery is not guaranteed.

  • The debtor may still not pay
  • You may need to take enforcement action
  • Enforcement carries further cost and uncertainty
  • If enforcement fails, your overall loss increases

The Commercial Reality

So the real question is not:

“Am I owed the money?”

It is:

“Am I prepared to take this risk?”

That is why my rule is clear:

Do not issue legal proceedings for debts below £1,150.

At that level, the combination of cost, risk and uncertainty is simply not commercially justified.

Why take the gamble?

Prevent Low-Value Debt

If a debt isn’t worth pursuing, don’t create the exposure in the first place.

  • Do not offer credit for low-value, one-off work
  • Only offer credit where the overall level of repeat business exceeds £1,150
  • For one-off services or where repeat business does not justify credit, use a Credit Card Authorisation Form

This allows you to hold card details as security before the work is carried out.

There are over 30 million credit card holders in the UK. If someone doesn’t have one, it’s often a red flag—either they lack a credit history or are not suitable for credit.

Do Not Run Your Business on Principles

One of the biggest mistakes I see is businesses pursuing debts out of principle.

A good business is not run on principle.
It is run on cost versus reward.

  • What is the point in paying £2,000 in legal fees to recover a £2,000 debt?
  • What is the point in spending £6,500 to recover £10,000 from someone worth £5,000?

If the numbers don’t stack up, the decision is simple—don’t pursue it.

Work Smarter, Not Harder

If you structure your business properly:

  • You protect your cash flow
  • You reduce risk
  • You avoid wasting time on the wrong customers
  • You focus on work that actually pays

In short, you stop running after money—and start letting it come to you.

If you want straight, commercial advice on credit management or whether a debt is worth pursuing, speak to me directly.

📞 01920 481467
🕒 Free half-hour consultation

Carlo Pegna
LL.B (Hons),FCILEx, MCICM