Frequently Asked Questions
A summary bank of common questions we get asked
The basics
What is PLR?
PLR is an abbreviation for “Paid Ledger Recovery”. We provide an audit and pre-qualification service that identifies potential recoveries hidden inside the Paid Sales Ledgers of business clients. The PLR service lends well to Insolvency clients or where a customer relationship has ended and/or been terminated. We find the claims; you decide whether to pursue them no obligation whatsoever.
What exactly are we claiming?
Statutory compensation and interest owed under the Late Payment of Commercial Debts (Interest) Act 1998, on any invoice the company issued that its own customer paid late. This applies to any invoices settled within the six year statutory limitation period”. Our Ledger value review will determine precisely the cut-off point.
Does this right survive insolvency?
Yes. The right to claim late payment compensation and interest is an asset of the company and transfers to the estate. Because there’s no ongoing trading relationship to protect with these former customers, it can typically be pursued without the commercial sensitivity that comes with chasing live debtors.
Cost and value
What does the initial analysis cost?
Nothing. We review the sales ledger and provide an indicative report of likely recoverable value at no cost and no obligation. You only decide whether to proceed once you can see the numbers.
How much compensation can be claimed per invoice?
Fixed compensation is set by invoice value: £40 per invoice up to £999.99, £70 per invoice between £1,000 and £9,999.99, and £100 per invoice for £10,000 and over — on top of statutory interest at 8% above the Bank of England base rate, calculated from each invoice’s due date to the date it was paid.
How many invoices does this usually involve?
It varies by business, but companies with meaningful invoice volumes typically show somewhere between 1,000 and 7,000 late-paid invoices across the six-year window. Reasonable additional costs of recovery can also be claimed alongside the compensation itself.
How is any recovery split?
This is case specific and subject to separate agreement.
The process
What do I need to provide to get started?
Access to the company’s sales ledger records is ideal, but not essential where records are incomplete, our analysis team can work from whatever hard-copy or exported reports exist.
How long does the initial report take?
Typically a matter of days from receiving access to the ledger, so you can see the likely recoverable value quickly and without tying up your own team’s time.
Who actually contacts the former customers?
Our instructed solicitors do, never PLR or you directly
Do I stay in control of which customers are pursued?
Yes. If there’s a former customer whose cooperation you need to preserve for any reason whatsoever, simply flag it to us and that invoice or customer is excluded from the exercise.
For Finance Providers
Does this only apply to facilities that have ended?
Yes. This service applies only to exited facilities and terminated client relationships, so there’s no active client or live debtor relationship for the review to affect.
Will this affect any of my current clients or live facilities?
No. With your agreement, it is limited to the accounts you identify as closed. We don’t review or contact debtors outside that scope.
Who identifies which facilities qualify?
You do. You retain full control over which exited facilities and terminated accounts are put forward for review.
more for Insolvency Practitioners
Can Statutory Late-Payment Rights Be Recovered After Liquidation?
YES – Where a company enters liquidation, qualifying statutory late-payment rights may still be recoverable by the liquidator as part of the company’s assets. This can include interest and fixed compensation arising from commercial invoices that were paid late, even where the original invoice has already been settled. Any recovery will depend on the contractual terms, the circumstances of each invoice and applicable limitation periods.
What Records Does an IP Need for a Paid Ledger Recovery Audit?
An Insolvency Practitioner would usually need the company’s historic sales ledger, showing invoice dates, invoice values, agreed payment terms and the dates payments were actually received. Where available, copies of the underlying invoices, customer statements, credit notes and relevant contracts or terms of business are also useful.
How a Second-Pass Paid Ledger Audit Creates Additional Estate Realisations
A Second-Pass Paid Ledger Audit reviews invoices that have already been settled to identify statutory late-payment entitlements that would not normally form part of a conventional debtor-book collection exercise.
How Far Back Can an Insolvent Estate Review Late-Paid Invoices?
In England and Wales, an insolvent estate can generally review late-paid commercial invoices going back up to six years, subject to when the relevant cause of action accrued and the specific contractual circumstances. The Late Payment of Commercial Debts regime provides for statutory interest from the day after the relevant payment date, while the usual limitation period for a simple-contract claim is six years. Each historic claim should therefore be checked individually for eligibility, contractual terms and limitation before recovery is pursued.
Paid Sales Ledgers: The Estate Asset That Conventional Debtor Collection Doesn't Examine
A paid sales ledger can contain value that conventional debtor collection never examines, because the underlying invoices may already have been settled. A Paid Ledger Recovery Audit looks beyond outstanding debts to identify statutory interest, fixed compensation and, where appropriate, recovery costs arising from qualifying late-paid commercial invoices. In an insolvency, this can reveal additional recoverable value for the estate that may otherwise remain unnoticed.
Still have a question?
Get in touch and we’ll walk you through exactly how it would work for your case.