Debt Recovery Costs for Businesses
Business-to-business debt recovery up to £100,000
This page provides costs information for business-to-business debt recovery work where the debt is up to £100,000. It is published in accordance with the SRA Transparency Rules.
We act for businesses seeking to recover unpaid invoices and commercial debts. The information below applies to debt recovery matters where:
- the creditor is a business;
- the debtor is based in England or Wales;
- the debt is up to £100,000;
- the matter concerns recovery of an unpaid invoice, contractual debt or other commercial debt;
- the matter is not subject to complex factual, legal or jurisdictional issues at the outset.
We do not offer fixed fees for debt recovery work. Our work is charged on the basis of our hourly rates, subject to a minimum initial charge.
Our minimum initial charge
Our minimum initial charge for opening a debt recovery file is £600 plus VAT.
| Minimum initial charge | VAT at 20% | Total including VAT |
| £600 | £120 | £720 |
The minimum initial charge covers opening the file, undertaking initial onboarding and compliance steps, reviewing the initial material, and carrying out up to two hours of work.
The minimum initial charge is payable in full once we agree to open the file and commence work. It is a minimum charge and is not a refundable deposit or a time bank from which unused time will be refunded.
No refund will be made of the minimum initial charge merely because:
- the matter settles;
- the matter is withdrawn;
- the debtor pays promptly;
- the case concludes quickly;
- you decide not to proceed further;
- the work required is less than two hours; or
- we complete the initial work in less than two hours.
If the work required exceeds two hours, further time will be charged at the applicable hourly rate.
The minimum initial charge is not a fixed fee for the whole matter. The total cost will depend on the work required, the debtor’s response, the complexity of the documents, whether the debt is disputed, and whether court proceedings or enforcement action are required
What may be included within the minimum initial charge
Our minimum initial charge for opening a debt recovery file is £600 plus VAT.
The minimum initial charge may include, depending on the circumstances:
- opening the file;
- initial onboarding and administrative steps;
- conflict checks;
- client due diligence and compliance checks;
- taking and reviewing initial instructions;
- reviewing the unpaid invoice or invoices;
- reviewing the relevant contract, purchase order, terms of business or correspondence;
- checking the debtor’s identity and address;
- considering the initial recovery options;
- advising briefly on the initial recovery strategy;
- preparing and sending an initial letter before action or other pre-action correspondence;
- reporting to you on the next steps or on any initial response received.
The precise work undertaken within the minimum initial charge will depend on the circumstances of the matter.
What is not included in the minimum initial charge
Unless expressly agreed in writing, the minimum initial charge does not include:
- initial onboarding and administrative steps;
- conflict checks;
- client due diligence and compliance checks;
- taking and reviewing initial instructions;
- reviewing the unpaid invoice or invoices;
- reviewing the relevant contract, purchase order, terms of business or correspondence;
- checking the debtor’s identity and address;
- considering the initial recovery options;
- advising briefly on the initial recovery strategy;
- preparing and sending an initial letter before action or other pre-action correspondence;
- reporting to you on the next steps or on any initial response received.
The precise work undertaken within the minimum initial charge will depend on the circumstances of the matter.
Hourly rates
After the first two hours included within the minimum initial charge, our hourly rates are as follows:
| Fee earner | Hourly rate excluding VAT | VAT at 20% | Hourly rate including VAT |
| Kate Irvine-Yates, Solicitor/Director | £300.00 | £60.00 | £360.00 |
We record time in 6-minute units. We will provide estimates and updates as the matter progresses.
Likely costs
Because we do not offer fixed fees and because debt recovery matters vary significantly, we cannot give a single total cost that will apply to every case. The likely cost depends on factors including:
- the value of the debt;
- the number and quality of the documents;
- whether the debtor disputes liability;
- whether there are multiple invoices;
- whether the debtor raises a counterclaim or set-off;
- whether proceedings need to be issued;
- whether enforcement action is required;
- the debtor’s conduct and responsiveness.
As a general guide, our likely fees for an undisputed business debt recovery matter are as follows:
| Stage | Likely fees excluding VAT | VAT at 20% | Likely fees including VAT |
| Opening the file, initial review and initial letter before action | Minimum £600 | £120 | Minimum £720 |
| Pre-action correspondence after the initial letter, if required | £300 to £900 | £60 to £180 | £360 to £1080 |
| Preparing and issuing a straightforward county court claim | £600 to £1,500 | £120 to £300 | £720 to £1800 |
| Requesting default judgment, if no acknowledgement of service or defence is filed | £150 to £450 | £30 to £90 | £180 to £540 |
| Initial advice on enforcement options after judgment | £300 to £900 | £60 to £180 | £360 to £1080 |
These figures are estimates only and are not fixed fees, save that the minimum initial charge is payable as set out above. We will provide a matter-specific estimate before carrying out substantial work.
If the debt is disputed, if a defence or counterclaim is filed, or if the matter becomes complex, the likely costs may be higher. We will provide a revised estimate if that occurs.
Court fees and disbursements
Disbursements are costs payable to third parties. These are payable in addition to our fees.
Likely disbursements may include:
| Disbursement | Likely cost or range | VAT position |
| Court issue fee | Depends on the value of the claim and the applicable HMCTS fee scale | Usually no VAT |
| Company search | Approximately £5 to £20 | VAT may apply |
| Land Registry search, if required | Approximately £3 to £10 | Usually no VAT |
| Process server, if required | Approximately £100 to £250 | VAT may apply |
| Counsel’s advice or attendance, if required | Usually from £500 plus VAT, depending on seniority and complexity | VAT usually applies |
| Enforcement officer, bailiff or High Court Enforcement Officer fees | Depends on the enforcement method used | VAT may apply depending on provider |
Court fees are set by HM Courts and Tribunals Service and may change from time to time. We will confirm the applicable court fee before issuing proceedings.
We will seek your approval before incurring any material disbursement.
If the debt is disputed
If the debtor disputes the debt, raises a counterclaim, alleges defective goods or services, relies on a set-off, or otherwise contests liability, the matter will no longer be treated as straightforward debt recovery.
In that situation, we will continue to charge on an hourly-rate basis and will provide an updated estimate for the next stage of work. The likely cost of a disputed matter will depend on the issues raised, the value of the claim, the volume of documents, and whether the matter proceeds to a hearing.
Likely timescales
Timescales depend on the debtor’s response and court availability. As a general guide:
| Stage | Indicative timescale |
| Opening the file and initial review | Usually within 3 to 5 working days of receiving complete instructions and funds on account |
| Initial letter before action | Usually within 3 to 5 working days after the initial review |
| Debtor response period | Usually 7 to 14 days for a business debt, depending on the circumstances |
| Preparing and issuing a court claim | Usually within 5 to 10 working days after expiry of the letter before action deadline, provided all documents and court fees are available |
| Debtor’s time to respond to court claim | Usually 14 days from deemed service, or 28 days if an acknowledgement of service is filed |
| Requesting default judgment | Usually within 5 working days after the relevant deadline expires, if no defence or acknowledgement is filed |
| Court processing of judgment | Dependent on court processing times |
These timescales are estimates only.
Key stages of an undisputed debt recovery matter
A typical undisputed debt recovery matter may involve the following stages:
- taking your instructions;
- opening the file and carrying out compliance checks;
- reviewing the invoice, contract, terms of business and supporting documents;
- checking the debtor’s details;
- advising on the initial recovery position;
- sending a letter before action;
- considering any response from the debtor;
- advising on whether to issue proceedings;
- preparing and issuing a county court claim, if instructed;
- requesting judgment in default, if the debtor does not respond;
- advising on enforcement options, if judgment is obtained and payment is still not made.
Enforcement action is not included unless separately agreed.
Interest and compensation
In some business debt claims, you may be entitled to claim interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998, or under your contractual terms.
We will advise whether interest and compensation appear recoverable in your case.
Recovery of costs from the debtor
If court proceedings are issued, the court may order the debtor to pay some of your court fee and fixed legal costs. However, the amount recoverable from the debtor may be less than the amount you pay us.
You remain responsible for paying our fees and disbursements unless we agree otherwise in writing.
Experience and qualifications
Debt recovery work is carried out or supervised by suitably qualified and experienced members of the firm.
Kate Irvine-Yates is a Solicitor/Director with 16 years’ post-qualification experience. She has experience in commercial disputes / business debt recovery / civil litigation / contractual claims.
Where appropriate, work may also be undertaken by paralegals or legal assistants under supervision.
Contact
For further information about our debt recovery services, please contact:
Irvine Yates Limited
937 Oldham Road
Rochdale
OL16 4SE
Email: kate@irvineyates.co.uk
Telephone: 0161 669 3222
This information is provided for transparency purposes. It is not a quotation for any specific matter. We will provide a matter-specific estimate before accepting instructions.