Commercial Debt Recovery Costs

It is very difficult to estimate commercial debt recovery costs because so much is dependent upon the actions of the parties and the complexity of the case. We would urge you to contact Rupert Farr or click here to fill out an enquiry form to be provided with a quote.

We are obliged to provide certain information on our website about the costs of commercial debt recovery actions for sums under £100,000. The day to day conduct of such a matter will be dealt with by either a paralegal, trainee solicitor, solicitor or partner. Where a partner does not have day to day control, the paralegal, trainee solicitor or solicitor dealing with the matter will be supervised by a partner. We charge on a time spent basis and the hourly charge out rates range from £115 plus VAT (currently at 20%) for a paralegal, to £600 plus VAT for the Senior Partner. Costs can range from £250 plus VAT to send one letter if payment is immediately received from the debtor, to around £75,000 plus VAT if a relatively straightforward but contested claim goes to trial. A likely cost for a claim that is paid before proceedings are issued, but after several rounds of correspondence will be around £5,000 plus VAT. If mediation, but not the issuing of proceedings, are involved prior to settlement, a likely cost will be £10,000-£15,000 plus VAT. If proceedings are issued, then costs will rise en route to trial and may be around £50,000-£75,000 plus VAT. These estimates do not involve defending any counterclaims, or dealing with any complex claims or appeals.