Short answer: UK businesses usually compare a fixed percentage on money recovered with solicitor time billing plus court fees. Through Debt Collection UK the fee is a fixed 15%, charged only when you are paid. Court fees, where needed, are separate and listed on GOV.UK.
Business debt collection fees are what a UK creditor actually pays to move an unpaid commercial invoice beyond soft reminders. The two models businesses compare most often are a contingent fixed percentage on recovered money, and solicitor time billing (plus court fees if you issue a claim). The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.
Debt Collection UK (a trading style of PASECOM GROUP LTD) introduces B2B files to independent partner agencies. We are not solicitors, we are not authorised by the Financial Conduct Authority, and we do not collect consumer credit. PASECOM GROUP LTD was incorporated on 7 April 2026. We introduce commercial claims; we do not issue proceedings. Partners collect. Recovery is not guaranteed.
This article is about fee structure, not a repeat of our no collection, no fee explained piece (which defines the contingent commission model) or our debt recovery agency vs solicitor guide (which compares roles and timescales). Here the focus is what you pay, what sits outside the percentage, and when each model suits an undisputed B2B balance. Service pages: no collection, no fee and debt collection agency. Also see business debt collection and unpaid invoices.
What do businesses typically pay for B2B collection?
For undisputed commercial debt, pre-legal collection through a partner is priced at 15% of what is recovered, payable only when you have been paid — a no-collection, no-fee basis. If nothing is recovered, that contingent percentage is not taken; that does not mean the whole journey costs nothing if you later choose court, solicitors, or enforcement.
What the percentage is for: commercial chase and partner recovery activity under their terms. What it is not automatically for (unless those terms say so):
- 1. Court issue fees if you later make a county court claim.
- 2. Solicitor hourly or fixed-fee litigation work.
- 3. Enforcement after judgment.
- 4. Your own staff time assembling proof before instruction.
Upload on this site has no upload fee. The fee is 15% of what is recovered, payable only when you have been paid.
How does a fixed 15% fee, only if paid, work?
A contingent fixed percentage aligns the partner’s fee with cash that actually returns. The fee is 15%, payable only when you have been paid. That is the commercial offer for introduced B2B files; always read the partner agreement for how the percentage is calculated.
Useful when:
- 1. The debt is undisputed B2B and proof is ready.
- 2. Soft chasing and a proper letter have stalled.
- 3. You want the success fee tied to recovered funds rather than open-ended time billing.
- 4. Cash flow matters more than running a litigation project yourself.
Not a promise of payment. Partners collect; we introduce. More: no collection, no fee explained. Path overview: debt collection agency.
Is Late Payment Act compensation the same as the agency fee?
GOV.UK explains that where another business is late paying for goods or a service, you may be able to claim interest and debt recovery costs — see GOV.UK late commercial payments.
The statute is the Late Payment of Commercial Debts (Interest) Act 1998. On a qualifying commercial debt, once statutory interest runs you may also claim fixed compensation under section 5A: £40, £70, or £100 depending on the size of the debt.
Those bands are statutory add-ons to the claim schedule. They are separate from the 15% fee. Claiming £40 / £70 / £100 from the debtor is separate from agreeing a 15% success fee with a collection partner. More: late payment compensation.
How do solicitor time billing and court claim fees work?
Instructing a solicitor on time-spent (or staged fixed) fees is a different cost shape. You may pay for letters, advice, and — if you authorise it — issuing a claim, whether or not the debtor pays. That can suit complex disputes or planned litigation. We do not provide legal advice; take advice if the file is contested.
If you make a court claim for money in England and Wales, GOV.UK — make a court claim for money explains the process. Court fees apply and change; check GOV.UK for current amounts rather than relying on a blog figure. Debt Collection UK does not issue proceedings. Partners collect. Role comparison: debt recovery agency vs solicitor.
Why follow the Practice Direction before you escalate cost?
Fee choices sit after proper pre-action steps. For company-versus-company files in England and Wales, follow Practice Direction – Pre-Action Conduct and Protocols: set out the claim, list key documents, say what you want and by when, and allow a reasonable time to reply — typically 14 days in a straightforward case.
A clear letter before action is the usual step before instructing a partner or spending on solicitors and court fees. Detail: letter before action for business debts.
When does the percentage model suit better than a solicitor?
Lean toward a fixed percentage / collection partner when the invoice is undisputed, evidence is complete, a Practice Direction letter has been ignored or met with silence, and you want contingent pricing tied to recovered cash. Instruction path: business debt collection.
Lean toward a solicitor when there is a genuine dispute on quality, quantity, delivery, or contract terms; when you need formal advice on limitation or insolvency; or when you have already decided to issue proceedings. Agency vs solicitor roles: debt recovery agency vs solicitor.
Neither path guarantees payment. Do not instruct a collection partner on a file you know is genuinely contested without sorting the dispute first.
What fee questions should you ask before you instruct?
- 1. Confirm the debtor entity and that the balance is still unpaid B2B.
- 2. Assemble invoice, contract or PO, delivery proof, and chase history.
- 3. Add Late Payment interest and the correct £40 / £70 / £100 band where the Act applies — remembering those figures are not the agency fee.
- 4. Send a proportionate Practice Direction letter with a clear pay-by date.
- 5. Decide fee model: contingent fixed percentage (marketing: 15% only when the client is paid) vs solicitor time billing and possible court fees.
- 6. Agree partner or solicitor terms in writing before work starts. Recovery is not guaranteed.
Frequently asked questions
What are typical business debt collection fees in the UK? For pre-legal B2B recovery introduced through this site, partners usually work on a fixed percentage of recovered sums. Marketing here describes 15% only when the client is paid (often no-collection, no-fee). Solicitor and court routes use different fee structures — check GOV.UK for current court fees.
Is the Late Payment Act £40 / £70 / £100 the collection agency fee? No. Those amounts are statutory fixed compensation you may claim from a late-paying business on a qualifying commercial debt. They are separate from any partner commission.
Does “no collection, no fee” mean recovery costs nothing? No. It means the contingent success fee is only taken if funds are recovered (subject to written terms). The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed. See no collection, no fee explained.
When should I use a solicitor instead of a percentage-based agency? When the debt is disputed, you need legal advice, or you plan to issue proceedings. We are not solicitors and do not conduct litigation. Compare roles in agency vs solicitor.
Are court claim fees included in the 15%? Not unless the partner’s written terms expressly say so. Court fees are paid to the court when you issue a claim — see GOV.UK make a court claim for money and check GOV.UK for current amounts. Debt Collection UK does not issue proceedings.
Can Debt Collection UK guarantee I will get paid? No. We introduce B2B files to independent partner agencies. Partners collect. Recovery is not guaranteed.
If an unpaid commercial invoice is blocking cash flow, choose the fee model that matches the file: contingent fixed percentage for undisputed pre-legal chase, or solicitor and court costs when litigation is the right tool. The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed. Upload the invoice and terms when you are ready to instruct.