By Lauren Windsor

Solicitor

22 June 2026

Article Blog

Many small businesses face the same frustrating issue: unpaid invoices while still holding a customer’s goods or property. But what are your actual legal rights in this situation?

In her latest article for smallbusiness.co.uk, Solicitor Lauren Windsor explores when a business can lawfully retain a customer’s property under a “lein”, a legal right that may allow you to keep possession of goods until payment is made.

Key insights include:

• A common law lien can, in certain circumstances, allow you to hold a customer’s property until a debt is paid
• This often applies where you’ve improved or worked on the customer’s goods (e.g. repairs or servicing)
• Contractual liens offer stronger protection if built into your terms upfront
• Wrongful retention can expose your business to claims under the Torts (Interference with Goods) Act 1977
• Acting without clear legal rights can quickly turn a debt issue into a legal dispute

The takeaway? While liens can be a powerful tool to encourage payment, they must be used carefully and lawfully, and the best protection is always in your contracts.

Take a moment to read the full article here.

Disclaimer: General Information Provided Only

Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.