Business to business debt recovery - undisputed debt

Range of fees for a business to business debt that is undisputed

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 basis (eg, if a one off letter is required) or an hourly rate if more extensive work is needed.

*For debt values of £10,000 plus, we have given an hourly rate above.  A claim can take anywhere from 10 hours of work up to 150 hours of work.  A time estimate will be discussed on an individual basis. In our experience, there are recurring factors which may increase the complexity of a claim:

• A debtor avoiding service of a claim;
• Complicated legal or factual issues;
• Further investigations required, such as – contacting third parties for evidence;
• 2 or more witnesses;
• Large volume of documents from either side;
• Multiple or various applications having to be made;
• Responding to multiple or various applications made by the other party;
• Inconsistent or conflicting accounts of events;
• Multiple parties;
• Fraud or dishonesty;
• A debtor becoming legally represented; and
• Higher value debt.

Those cases which are less complex typically include some of the following:

• Debtors that can be served, but who do not respond to a claim;
• Our clients already being familiar with the debt recovery process; and
• Simple factual matters.

Anyone wishing to proceed with a claim should note that:

• The VAT element of our fee cannot be reclaimed from your debtor
• VAT is applied at a rate of 20% and at the time of providing a quotation, this information is also provided
• Interest and compensation may take the debt into a higher banding with a higher cost
• The costs quoted above are not for matters where enforcement action such as the bailiff is needed to collect your debt
• The costs quoted above does not include negotiations with the other side over an instalment plan or collecting payments on your behalf

Our fee includes:

• Taking your instructions and reviewing documentation
• Undertaking any necessary searches
• Sending a letter of claim
• Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
• Where no acknowledgement of service or defence is received, applying for judgment in default
• When judgment is received, writing to the other side demanding payment
• If payment is not received within 14 days providing you with advice on the next steps available to you

Excluded costs

The costs as outlined above do not include other third-party costs such as:

• Advocate's fees (if applicable)
• Barrister’s fees (if applicable)

These will be given to a client at the time a suitable application based on a client’s circumstances is identified. These fees will attract VAT at a rate of 20%..

Matter usually take approximately 3-4 months from receipt of instructions from 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 the judgment in default.  If enforcement action is needed, the matter will take longer to resolve.

We have a range of fee earners available to deal with these matters from junior members of staff through to Director level who are qualified as Legal Executives or Solicitors.  All work is supervised by the Directors.

For further details on our Litigation Team please click here