Stage 1: Pre legal collections Fees

If you’re a business owner you’ll know how important it is to receive payment promptly, and the detrimental impact that late or unpaid invoices can have on your business, from causing uncertainty and disrupting cash flow to potentially damaging your reputation if you’re unable to pay your staff or creditors.

At Rothera Bray our debt recovery team specialises in recovering commercial debt for businesses, credit control and rent recovery on residential and commercial properties. Our primary aim is to provide a tailored debt recovery/collection service, ensuring that your money is recovered at minimal cost to you.

Disputed cases

Charged at hourly rates listed below depending on experience.

Our debt recovery department is headed up by Terhi Sygrove. Terhi has over 10 years’ experience as a debt recovery manager and can provide expert legal advice on commercial and consumer debt recovery as well as national and international credit control. She also represents unpaid creditors, suppliers, liquidators and also advises on credit control procedures and practice.

Letter before action (undisputed debt) – £255+VAT (If there is any work outside standard preparation such as lengthy interest calculations, high volume of invoices etc. we may charge further fees calculated on our hourly rates, confirmed at outset of matter)

We will initially send a Letter Before Action to the debtor, asking them to pay the full amount within a specified time, and stating in no uncertain terms that failure to do so will result in the start of Court proceedings which will include a claim for costs, fees and interest.

Unless you say otherwise, in all commercial debt recovery cases we will include a claim for interest and compensation costs under the Late Payment of Commercial Debts (Interest) Act 1998. Alternatively, we will claim interest at the relevant rate set out in your terms and conditions.

Stages of process:

When you instruct us to send a letter before action, we will:

• Carry out a full credit check on your debtor, using our in-house facility if they are a company;
• Carry out an insolvency search if your debtor is an individual;
• Calculate any interest payable arising from your terms and conditions or late payment interest & costs from the due date of each invoice;
• Send a letter before action promptly upon receiving your instructions;
• Acknowledge your full instructions by email to confirm that the letter before action has been sent out, by what method and with details of the amount demanded including interest and costs if and where appropriate;
• When the deadline in the letter expires we will contact you to check whether payment has been received, and if not we will advise you about your further options and the next course of action.

Our fee includes:

• Initial consultation by phone/email/in person
• Carrying out credit checks/insolvency searches on your debtor
• Calculating the total interest payable to you
• Issuing the letter before action and confirming with you when it has been sent
• Receiving payment and sending on to you and/or providing advice on next steps as appropriate.

Our fee does not include:

• Trace fees (typically ca. £100.00 for positive trace)

The fees for our service can vary depending on several factors including:

• The amount of debt that is owed
• The type of company owing the debt, (e.g. sole trader, company or international)
• Complex, disputed letters or where there is considerable documentation (hourly rates may apply)

Timescales: Typical debt cases last anywhere from 2 weeks – 8 weeks to obtain payment/Judgment in default.

Statutory Demand 

Alternatively at this stage a formal Statutory Demand can be made under the Insolvency Act, in place of a letter before action. This is a formal step which precedes the presentation of a Winding Up Petition against a company or a Bankruptcy Petition against an individual.

To proceed down this route the debt must be over £5000 and you must not know of any dispute in relation to your claim, or a debtor can apply to the County Court to set the Statutory Demand aside.

Normal hourly rates apply:

Stages of process:

• A Statutory Demand must be personally served on the debtor. We will arrange this on your behalf by instructing a process server.
• If the debtor does not pay the debt or contest the demand within 21 days of receipt, you can start formal insolvency proceedings.

Due to the formal appearance of a Statutory Demand and the possible consequences of non-payment, this is a much more aggressive and effective method of recovering payment.

A typical statutory demand will require:

·         2-3 hours preparation

·         Instructing a process server

Our fee does not include:

·         Process server fee, normally around £75.00+£90.00+VAT

• Trace fees (typically ca. £100.00 for positive trace)

Timescales: A statutory demand usually takes about 2-4 weeks once instructions have been received and sent to the process server.

Our debt recovery department is headed up by Terhi Sygrove. Terhi has over 10 years’ experience as a debt recovery manager and can provide expert legal advice on commercial and consumer debt recovery as well as national and international credit control. She also represents unpaid creditors, suppliers, liquidators and also advises on credit control procedures and practice.