Most commercial debt should never reach a courtroom. Pre-legal recovery is faster, cheaper and less damaging to the commercial relationship, which is why it is always the right first step. But some debtors simply will not engage, and at that point litigation stops being a threat and becomes the tool for the job.
The difference between escalating well and escalating badly is preparation.
Court-ready before it needs to be
Matters fall apart in court over documentation, not merit. The invoice that was never signed for. The delivery note nobody kept. The variation agreed verbally and never confirmed in writing. The purchase order issued in the name of an entity that turns out not to be the contracting party.
From the moment we take an instruction, we build the file as though it may end up in front of a magistrate: invoices, statements, signed agreements, delivery confirmations, and the full record of contact and any acknowledgement of the debt by the debtor. Written acknowledgements are particularly valuable, they interrupt prescription and destroy a later claim that the debt was never owed.
By the time escalation is on the table, the file is already complete. That is what makes the handover fast instead of a fresh start.
Which court hears your claim
Court
Claim value
Against companies?
- Small Claims Court
- District Magistrate's Court
- Regional Magistrate's Court
- High Court
- Up to R20,000
- Up to R200,000
- R200,000 to R400,000
- Above R400,000
- No, individuals only
- Yes
- Yes
- Yes
The detail that catches out a surprising number of business owners: the Small Claims Court cannot be used against a company or close corporation. Since most B2B debt is owed by a registered entity, those matters sit in the Magistrate’s Courts or the High Court.
How the process runs, realistically
In the Magistrate’s Courts a matter begins with a summons, which the debtor has a fixed period to answer. If they do not defend it, default judgment can be applied for, which is the fastest route to judgment, though “fast” here still means weeks rather than days. If the debtor defends, the matter moves toward trial, which is considerably slower and where costs escalate quickly. The High Court follows similar logic with more formality, longer timelines and higher cost, which is exactly why most commercial debt never needs to go there.
A judgment is not payment
This is the part creditors are rarely told before they start. Winning a judgment does not put money in your account. The judgment still has to be enforced, through mechanisms such as a writ of execution against the debtor’s assets, or a garnishee or emoluments attachment order.
Litigation is a legitimate tool, and sometimes the only one left. It is also slower, costlier and less certain than a negotiated settlement reached in the first 60 days. We escalate when escalation is right, not by default.
Legal costs and how they are handled are confirmed with you in writing before any escalation.
Debtor refusing all contact?
We will tell you whether the matter is genuinely ready for legal action, and whether pre-legal recovery still has a realistic chance first.
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