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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, for example, if a one-off letter is required, or an hourly rate if more extensive work is needed.
There are two stages to our debt recovery procedure:-
Stage 1 – Letter Before Claim
We charge a fixed fee of £25 plus VAT for each unpaid invoice.
This fee includes:
- Taking your instructions regarding the unpaid invoice
- Sending a Letter Before Claim to the debtor
Stage 2 – Issuing a Claim Form
The amount we charge in respect of issuing a Claim Form is dependent on the value of the debt, as follows:
Debt Value | Court Fee | Our Fee | VAT | Total |
|---|---|---|---|---|
Up to £5,000 | £25 - £410 | £250 | £50 | £325 - £710 |
£5001 - £10,000 | 4.5% value of the claim | £375 | £75 | £675 - £900 |
£10,001 - £50,000 | 4.5% value of the claim | £500 | £100 | £1,050 - £2,850 |
£50,001 - £100,000 | 4.5% of the claim | £625 | £125 | £1,200 - £5,250 |
Please note that interest and compensation may be added to the debt which may take it into a higher banding, with higher cost.
The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt, nor if the other party disputes, counterclaims or wishes to enter into negotiations regarding the debt – a further cost estimate will be provided in those circumstances.
This fee includes:
- Reviewing any response to the letter before Claim from the Debtor.
- Drafting and issuing a Claim Form via the Money Claim On-line service
- Where no Acknowledgement of Service or Defence is received, applying to the Court to enter Judgement in default.
- When Judgement in default is received, write to the other side to request payment.
- If payment in full is not received within 14 days, providing you with advice on next steps and likely cost.
Matters usually take 4 – 12 weeks 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 and whether the debtor pays promptly on receipt of Judgement in default. If enforcement action is needed the matter will take longer to resolve and be subject to further costs.