One of the leading debt recovery law firms in the UK, stated that legal action to secure payment from foreign debtors is on the rise.

The number of Letters Before Action (LBAs) being issued on behalf of businesses in Great Britain to foreign debtors, has jumped by 19%.

LBAs are used to secure payment, or to receive a response from a consumer before the commencement of a legal claim.

In addition to this, there has been a 39% rise in LBAs being issued to foreign companies on behalf of firms in Eire during the same time period.

As a result, the law firm are urging exporters to consider some simple methods to make sure they are prepared for any pre-legal or legal action they may need to take, as the recession has prompted a mass of late or no payments.

Trevor Philips, Director of Sales and Marketing for the firm said: "There are a number of key considerations to ensure your business is ready to deal with any potential disputes.

"While it’s always good to be positive and hope that debt issues won’t occur, the reality, as our analysis has shown, is that late payment is entirely probable and debtors may try to use distance and language barriers to their advantage."

Phillips concluded that the best way for any contract with an overseas firm is for companies to do their groundwork and use credit or identity checks.