We know how important it is for you to have a seamless credit control system in place. Unpaid invoices can bring your business to a grinding halt.
It affects cash flow and can lead to serious issues including payment of creditors and even staff, all with the potential of damaging your reputation as an employer and supplier.
Our debt recovery team can work quickly to help resolve your issue with the minimum of fuss, taking the stress out of the situation – it may only take one letter! Click here to view the members of our team.
If all doesn’t go to plan, our specialist commercial litigation lawyers will be able to advise you on the best course of action that’s appropriate to the amount you are owed. If a customer becomes insolvent or there are any other insolvency issues, our nationally renowned team will also help protect your interests by liaising with the liquidator.
We are always at the end of the phone or email to provide guidance and advice on debt recovery issues, and for many businesses, we are an extension of their credit control team.
Recovering debts up to £100k
Before talking about our prices, we thought you might like to understand in a little more detail what is typically involved and how long it might take.
This is what we will do for you:
- Review any documentation
- Obtain any appropriate searches
- Send a letter before action
- Receive payment and send to you, or if the debt is not paid, draft and issue a claim
- Where no Acknowledgment of Service or Defence is received, we’ll apply to the court to enter Judgment in default
- When Judgment in default is received, we’ll write to the other side to request payment
- If payment is not received within 7 days, we’ll provide you with advice on the next steps we can take and the likely costs.
How long will all that take?
The process usually takes 6 to 8 weeks from initial discussion to receiving payment from the debtor. That will depend on whether or not we need to issue a claim. This is on the basis that the debt is paid promptly when they receive Judgment in default.
If the debtor does not pay, we may need to consider enforcement action and will discuss timescales and provide you with a tailored quote.
How much will it cost?
We’ve outlined the costs below for recovering undisputed debts up to £100,000 in value, and where enforcement action is not needed.
During the course of the debt claim, 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.
Letter of Claim – £25 (plus VAT)
No additional charge is made for stationary or postage. Those fixed charges may increase if we are not provided from the outset with all necessary information to issue the letter of claim as required under the Pre-Actons Protocol for Debt Claims.
Fee if debt successfully recovered – 4% of the amount of debt paid (plus VAT)
This will be payable if payment is made by the debtor of more than £2,000 after we send the letter of claim but before court proceedings are started.
Court Proceedings – £100 (plus VAT) + Court fee (table below)
For drafting and issuing proceedings. You’ll also need to pay the court fee depending on the amount of the claim.
|Debt value||Court fee||Our fee (plus 20% VAT)||Total cost (inc. 20% VAT)|
|Up to £300||£35||£100||£155|
|£301 – £500||£50||£100||£170|
|£501 – £1,000||£70||£100||£190|
|£1,001 – £1,500||£80||£100||£200|
|£1,501 – £,3000||£115||£100||£235|
|£3,001 – £5,000||£205||£100||£325|
|£5,001 – £10,000||£455||£100||£575|
|£10,001 – £100,000||5% of the value of the debt||£100||£620.05 – £5,120|
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.
VAT – Please note that the addition of vat to our charges is governed by very complex statutory provisions and extra-statutory guidance. Read more here.
What happens next?
We would love to work with you to recover unpaid debts.