Commercial Litigation – Business to Business Debt Collection Cost/Prices
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.
We anticipate this will take between 3 and 5 hours work at £150 – £275 per hour (+ VAT). Subtotal: £450 – £1,375 (+VAT).
Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the nature of the claim. Court fees are recoverable as part of your debt claim.
- Tracing agent fee: £45 (+VAT)
- HM Land Registry search fee: £3 per search
- Court fee: £35 – £5,000 (the court fee will depend on the value of the claim)
- Subtotal: £92 – £5,057
Grand total: £632 – £6,707
Anyone wishing to proceed with a claim should note that:
- 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 and reviewing documentation
- 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 is received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
Matters usually take 2 – 7 weeks from receipt of instructions from you to receipt of payment from the other side or obtain Judgment in default, 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.