Business Debt
Recovery
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What it costs

Fixed fees for the work, agreed in writing before anything starts — and a plain account of what is added to the debt rather than paid by you.

Two separate things get called 'the cost of debt recovery' and they behave completely differently. Our fee is what you pay us for the work. The court fees and the statutory entitlements are added to the debt and, if the debtor pays, come back to you. Keeping them apart is how you decide whether a step is worth taking.

Our fees

We charge fixed fees for the work, agreed in writing before it starts. We do not take a percentage of what we recover, so the money that comes back is yours.

The three steps most debts actually need:

Letter before action

Debtor is a business

A formal final demand from a legal name, with the interest and compensation calculated and added. Most commercial debts are paid at this stage.

What the fixed fee includes
  • Confirm the debtor's legal identity at Companies House
  • Check the debt is still within the limitation period
  • Calculate statutory interest and the fixed compensation sum
  • Letter before action with a 7 or 14 day deadline
  • Our recommendation on the next step if it is ignored
£45+VAT, per debt

Letter of claim

Debtor is an individual or sole trader

A different regime applies, with prescribed contents, prescribed enclosures and a 30-day clock. Getting it wrong costs you on costs later.

What the fixed fee includes
  • Confirm the debtor's legal identity and status
  • Calculate statutory interest and the fixed compensation sum
  • Protocol-compliant letter of claim, 30 days to pay
  • Information sheet, reply form and financial statement
  • Our recommendation on the reply, or the absence of one
£95+VAT, per debt

Court claim

Issued by RHF Solicitors, SRA 324115

If the deadline passes and the debt is not genuinely disputed, the claim is issued by a regulated firm — on the same file, with us still on it.

What the fixed fee includes
  • Draft the claim form and particulars of claim
  • Issue the claim against the debtor
  • Request judgment in default if it goes unanswered
  • Notify the debtor of the judgment
  • Advise on which enforcement route actually fits
from £195+VAT, plus the court fee

The full schedule

Every step, what it covers and what it costs. Nothing escalates without you agreeing it first.

£

Check and cost the debt

Who legally owes it, whether it is still in time, and what it is worth once statutory interest and compensation are added. Done before you commit to anything.

Free
Every case, no obligation
£

Second or final demand

Where the first letter produced contact but not payment, or produced nothing and the debtor is worth one more push before a claim.

£60
+VAT
£

Review and advise on the debtor's response

They have replied — with an offer, a dispute or an excuse. What it actually means and what we would do about it.

£145
+VAT
£

Negotiated settlement or payment plan

A plan in writing with the interest preserved and the consequences of default spelled out, so a default puts you back to the claim stage rather than back to the argument.

£275
+VAT
£

Court claim, debt up to £5,000

Drafted and issued by RHF Solicitors, with judgment in default requested if unanswered.

£195
+VAT, plus the court fee
£

Court claim, £5,000 to £10,000

As above, on a larger claim.

£450
+VAT, plus the court fee
£

Court claim, £10,000 to £100,000

As above, on a larger claim again.

£750
+VAT, plus the court fee
£

Statutory demand

Where the debt is clearly undisputed, the debtor is trading and you are prepared to petition if it is ignored. We will tell you when it is the wrong tool.

£550
+VAT, plus service
£

Enforcement — warrant or writ of control

Instructing a County Court bailiff, or transferring up to a High Court Enforcement Officer on a judgment of £600 or more.

£110
+VAT, plus the court fee
£

Enforcement — attachment of earnings

Where you have judgment against an individual or a sole trader who is in employment.

£275
+VAT, plus the court fee
£

Enforcement — charging order or third party debt order

Securing the judgment against property, or catching money held for the debtor by their bank. Which one fits depends entirely on what they actually have.

£950
+VAT, plus the court fee
£

Order to obtain information

Bringing the debtor to court to answer questions about their means under oath. Often the cheapest sensible first move against a debtor you know nothing about.

£325
+VAT, plus the court fee
£

A whole aged ledger

Ten debts or more. We triage the ledger with you first and quote on the entries where escalation would change the outcome — not on all of them.

Quoted
After triage, before you commit
The fee is usually smaller than what it adds to the debt

Worth doing the arithmetic before deciding it is an expense. On a £10,000 invoice 90 days late, the fixed compensation alone is £100 and the statutory interest is about £290 — so a £75 letter is more than covered by what it puts onto the claim, before the debt itself is recovered. That is the whole argument for costing a debt properly rather than just chasing it.

What gets added to the debt

This is the part most businesses do not claim, and on an aged ledger it is frequently larger than the cost of recovering it.

Your statutory entitlement on a late commercial debt
Statutory interest, currently 11.75%8.0% over base rate
Fixed compensation, debt under £1,000£40
Fixed compensation, £1,000 to £9,999.99£70
Fixed compensation, £10,000 or more£100
Reasonable recovery costs above the fixed sumRecoverable

Late Payment of Commercial Debts (Interest) Act 1998. Implied into business-to-business supply contracts by statute — it does not need to be in your terms. Calculate it on your invoice.

Court fees, if it gets that far

Set by the Ministry of Justice, not by us, and added to the claim so they are recovered from the debtor if you win. The scale in force from 13 July 2026:

Court fee to issue a money claim
Amount claimedCourt fee
Up to £300£35
£300.01 to £500£50
£500.01 to £1,000£70
£1,000.01 to £1,500£80
£1,500.01 to £3,000£115
£3,000.01 to £5,000£205
£5,000.01 to £10,000£455
£10,000.01 to £200,0005% of the claim
Over £200,000£10,000
Enforcement
StepCourt fee
Warrant of control (County Court bailiff)£96
Writ of control (transfer up to a High Court Enforcement Officer)£82
Attachment of earnings order£139
Third party debt order£139
Charging order£139
Order to obtain information from a debtor£69

Hearing fees only arise if a claim is defended and allocated to a track — see court claims for that scale. A winding-up petition is different again: £352 court fee plus a £2,600 deposit to the Official Receiver, which is why statutory demands are a considered decision rather than a routine step.

A worked example

An illustration, not a quote — the arithmetic is real but your debt is yours.

Illustrative · £8,500 invoice, 120 days past its due date
Invoice£8,500
Statutory interest at 11.75% for 120 days£328.36
Fixed compensation (debt of £1,000 to £9,999.99)£70.00
Claimable£8,898.36

Interest continues to accrue daily until the debt is paid. If a claim were issued, the court fee and fixed costs would be added on top and would also be recoverable from the debtor.

What we will not do

What you can add to the debt

A one-page summary of statutory interest, the fixed compensation sums and recoverable costs, with the current rate.

Send us the invoice.
You'll get a fee and a view.

Send us the invoice

Tell us what you are owed and who owes it. You get back what the debt is actually worth once interest and compensation are added, what we would do first, and the fixed fee for doing it.