A guide to our costs for Business to Business Debt Recovery (up to £100,000)

 Does this guide apply to your matter?

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.

Our fees

Our costs are charged on the basis of the work undertaken on your matter and not charged based on the value of your claim so you will only be charged for the work done.

Your matter will be dealt with by an Advanced Paralegal and will be charged at the rate of £230 per hour + VAT (£276 including VAT). Should the matter become more complex, the expertise of the litigation partner may be required and those costs will be charged at the rate of £290 per hour + VAT (£348 including VAT).  There may also be a £16.80 (including VAT) ID fee payable and if you require money to be transferred via bank transfer a further £36 (including VAT) will be charged.

We estimate for a straight forward debt recovery with no additional work than that given in the list below the costs will be £800 + VAT (£960 including VAT) plus £16.80 electronic ID verification fee (including VAT) and plus the Court fee applicable to the size of the claim.  

The Court fees applicable to debt claims are as follows:

What do the fees stated above include?

• Taking your instructions and reviewing documentation and writing to you to advise you on your matter.
• Undertaking appropriate searches
• Sending a letter before action
• Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
• Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
• When Judgement in default in received, write to the other side to request payment
• If payment is not received within X days, providing you with advice on next steps and likely costs

What you should be aware of before proceeding with a claim

• If the claim is under £10,000 then it will be allocated to the Small Claims Track, in the Small Claims Court you cannot claim back your solicitor’s fees.
• 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.

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. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.