Debt Recovery
Our costs
Business to Business debt recovery (up to £100,000)
We understand that embarking on debt recovery proceedings can be daunting which is why we offer clear and comprehensive guidance and advice through every stage.
Click here to view a flowchart that sets out the debt recovery process.
The prices we charge to send a letter of claim and to pursue court proceedings to obtain a County Court Judgment for an undisputed debt owed by a business are set out in the tables below.
If any of the following circumstances apply, then we will provide you with separate advice on the work that will be necessary together with a bespoke costs estimate:
- If the debtor is an individual;
- If the debtor is a company based outside of the English and Welsh jurisdiction;
- If the debt is for more than £100,000, or the matter is complex.
We will also provide advice on whether you are entitled to claim interest on the debt whether contractually or pursuant to the Late Payment of Commercial Debts (Interest) Act 1998, which enables interest to be claimed at 8% above base rate if the criteria under the Act are met.There is also the possibility of claiming additional sums and costs under this Act.
Letter of claim
The first stage will be to demand payment from the debtor by sending a "letter of claim" requesting that payment is made in full within a set period of time (usually 7 days). From our experience, in the majority of cases, such a letter from solicitors will produce payment. We offer a simple price for setting your business up on our debt recovery service and sending out a letter of claim regardless of the value of the debt, as below.
| Value of debt | Our cost (including VAT) |
| Up to £100,000 | £600 (£100 VAT) |
The above fixed cost includes:
- Setting your business up on our debt recovery system;
- Providing you with our instruction form for completion;
- Reviewing your completed instruction form and attached documents;
- Carrying out a quick check of debtor's solvency at Companies House;
- Advising on interest claim and calculating;
- Sending a letter of claim to debtor; and
- Receiving payment and sending it on to you.
If you have, or are likely to have, multiple debtors, then once you are set up on our system, we are able to offer a reduced rate for subsequent letters of claim as follows:
| Numbers of letters (within calendar year from set up) | Our cost per letter (including VAT) |
| 2 - 9 | £150 (£25 VAT) |
| 10+ | £75 (12.50 VAT) |
In terms of timescales, we aim to set up your business on our debt recovery system and send out the first letter of claim within one week of receiving your instructions (subject to completion of any applicable regulatory checks we need to undertake on file set-up). Once your business is set-up, we aim to send out letters of claim on the day we receive your completed instruction form (if received before midday).
Payment is generally received within one to two weeks of the letter of claim being sent out (if the debtor pays promptly).
Court proceedings
If the letter of claim does not produce payment from the debtor and you decide you wish to pursue court proceedings, we can do so on your behalf via the court service, Money Claims Online. This is an online service through which we can issue your claim and keep track of your claims at all stages. We have a simple and clear pricing structure as below.
| Value of debt (including any interest claimed) | Court fee | Our costs (including VAT) | Total | Costs/fees recoverable on Judgment |
| Up to £10,000 | £35 - £455 | £600 (£100 VAT) | £635 - £1,055 | £107 - £585 |
| £10,000.01 to £100,000 | 5% of the value of the claim | £900 (£150 VAT) | £900 + court fee | £130 + court fee |
The above fixed costs include:
- Drafting and issuing a claim at court (using the Money Claim Online service) including calculation of interest (if claimed);
- Applying for a Judgment in default (where the claim is not disputed);
- When Judgment is received, writing to the debtor to request payment; and
- Receiving payment and sending it on to you.
In terms of timescales, if the claim is not defended then it usually takes between 7 – 9 weeks from receipt of instructions to obtaining a default Judgment. Payment under a Judgment is required within 14 days of the date of the Judgment.
In addition to the above, we can provide a bespoke costs estimate for the following:
- Advice on the merits of the claim (either before a Letter of Claim is sent or before court proceedings are issued);
- Dealing with any dispute at whatever stage it may arise;
- Negotiations on your behalf;
- Enforcement of a Judgment;
- Service of a Statutory Demand and advice on insolvency procedures.
