Commercial debt recovery fees

Fixed Fees for Commercial Debt Recovery

 These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is need.

Anyone wishing to proceed with a claim should note that:-

• The VAT element of our fee cannot be reclaimed from your debtor
• Interest and compensation may take the debt into a higher banding, with a higher cost
• The quotes quoted above are not for matters where enforcement action, such as the Bailiff, is needed to collect your debt.

Stage 1 Costs

DEBT VALUE                                  OUR FEE (including VAT)

Up to £5,000.00                                  £300.00

Over £5,000.00                                   £400.00

 Our Fee includes:

• Taking your instructions and reviewing documentation
• Undertaking appropriate searches
• Sending a Letter before Action
• Receiving payment and sending on to you

Stage 2 Costs

If at the end of Stage 1 your debt is not paid, our Stage 2 costs include:

• Drafting and issuing a Claim Form in the County Court
• Where no Acknowledgement of Service or Defence is received, applying to the Court to enter Judgment in Default
• When Judgment in Default is received, writing again to the other side to request payment
• If payment is not received within 14 days, providing you with advice on the next steps and likely costs

DEBT VALUE                      COURT FEE             OUR FEE (including VAT)

Up to £300.00                         £25.00                                     £200.00

£301 – £500                             £35.00                                     £200.00

£501 – £1000                           £60.00                                     £250.00

£1001 – £1,500                        £70.00                                     £250.00

£1,501 – £3,000                       £105.00                                   £300.00

£3,001 – £5,000                       £185.00                                   £300.00

£5,001 – £10,000                     £410.00                                   £300.00

£10,001 – £100,000                 4.5% of value of claim            £300.00

£100,001 – £200,000               5% of value of claim               £400.00

Greater than £200,000             £10,000.00                              £400.00

Matters usually take 2 months from receipt of instructions to you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgment in default. If enforcement action is needed, then a matter will take longer to resolve.