Debt collection for a 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 (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.
For a fixed fee of £25, we will review the following documents and advise you on the merits of your case:
- Contract between the parties; - Email correspondence between the parties; - Copies of outstanding invoices; and
We will also identify the full and correct name of the party to sue and the correct address for service.
If we believe that you have a valid claim, with your instruction, we will draft a Letter Before Action to send to the debtor in compliance with the Civil Procedure Rules Pre- Action Protocols.
If you instruct us to send a Letter Before Action, the advice fee of £25 will be deducted from the fixed fee.
The fixed fee to send a Letter Before Action depends on the value of the debt owed to you and are outlined in the list below.
Less than £1,000 - our fee is £75 + VAT
£1,000 to £10,000 - our fee is £100 + VAT
£10,000 to £100,000 - our fee is £150 +VAT
|Debt value||Court fee (issuing through Money Claims Online)||Our fee (excluding VAT)||Fee to enter into Default Judgment|
|Up to £300||£25||£50||£22|
|£10,001-£200,000||4.5% of the value of the claim||£100||£30|
|Greater than £200,000||£10,000||£100||£30|
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 costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions.
- Receiving a payment and sending onto you.
- Where no Acknowledgement of Service or Defence is received, applying to the court to enter into Default Judgment.
If payment is not made after Judgment has been received, we will provide you with advice on next steps and likely costs.
Matters usually take 2-12 weeks from receipt of instruction 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 Judgment in default. If enforcement action is needed, the matter will take longer to resolve.