Unpaid invoices cost you time and cash flow. When it's time to bring in a professional, three questions come up again and again: what will it cost, how do you find a good agency fast, and will you be paying upfront? This guide answers all three, with links to the official sources so you can check the detail yourself.
Most UK commercial debt recovery agencies work on commission, typically 10-25% of what they recover, with nothing to pay if nothing is collected. For UK business-to-business debts, the law lets you claim reasonable recovery costs back from the debtor, so the cost can often be passed on. To find an agency quickly, start with the Credit Services Association member directory, check the FCA Register and Companies House, and choose an agency you can instruct online straight away.
How much does professional debt recovery typically cost?
Most agencies charge commission: a percentage of the money they actually recover. For UK commercial debts, that typically sits between 10% and 25%.
Where your debt lands in that range comes down to a few things:
Age - the older the invoice, the more work it takes to collect.
Size - larger balances usually attract a lower percentage.
Location - recovering from a debtor overseas costs more than in the UK.
Complexity - disputed debts, or cases that need legal action, sit at the higher end.
What STA charges
No charge for onboarding, reporting or our online portal.
Discounted rates for repeat or high-value placements.
If an international case needs passing to a local agent, the commission increases, and only ever with your approval first.
Costs you can claim back from the debtor
For UK business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 (opens in a new tab) gives you three rights when an invoice is paid late:
Statutory interest at 8% above the Bank of England base rate.
A fixed compensation sum for each invoice: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.
Reasonable recovery costs above that fixed sum, which can include a collection agency's fees.
GOV.UK explains how to charge interest and claim debt recovery costs (opens in a new tab), and the fixed sums are set out in section 5A of the Act (opens in a new tab).
That's why recovery can often be cost-neutral. Where a UK debtor pays the interest and costs on top of the debt, you keep the full value of your invoice. Where they don't, you pay our commission on what's recovered.
- The Act doesn't cover debts owed by consumers.
- If your own terms already set out late payment interest, those generally apply instead, provided they're a substantial remedy for late payment.
If it goes to court
If a debtor won't engage, legal action is the next step. In England and Wales, the court issue fee depends on how much you're claiming, including interest:
Claim amount | Court issue 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 £200,000 | 5% of the claim |
Over £200,000 | £10,000 |
Source: GOV.UK - Make a court claim for money: fees (opens in a new tab). Further fees can apply later, for example for a hearing or to enforce a judgment. Scotland and Northern Ireland have their own court processes and fees.
Taking it to court? Know the cost first
Changes on the way
The Commercial Payments Bill is currently going through Parliament. It proposes maximum payment terms of 60 days, mandatory interest on late payments at 8% above base rate, and new powers for the Small Business Commissioner to adjudicate payment disputes and fine persistent late payers. It has passed the House of Lords and is waiting for its second reading in the Commons, so none of this is law yet.
You can follow its progress on the UK Parliament Bill page (opens in a new tab) or read the government's overview of the Bill (opens in a new tab).
Where can I find a debt recovery agency quickly?
The quickest route to a reliable agency is an official directory, a five-minute background check, and an agency that lets you place a case online straight away. Speed matters. The older a debt gets, the harder it is to collect.
Where to look
CSA Member Directory (opens in a new tab) - the Credit Services Association is the UK trade association for the debt collection and debt purchase industry. You can search members by service and location. Every member has to follow the CSA Code of Practice (opens in a new tab), which covers commercial as well as consumer collections.
FCA Financial Services Register (opens in a new tab) - any agency collecting regulated consumer credit debts must be authorised by the Financial Conduct Authority. Commercial B2B collection doesn't need FCA authorisation, but an agency that holds it is already working to the regulator's standards.
Companies House (opens in a new tab) - check how long the agency has been trading and whether its accounts are up to date.
ICO register of fee payers (opens in a new tab) - an agency handling your customers' personal data should be registered with the Information Commissioner's Office.
A quick checklist before you instruct
What to have ready
You'll get started faster with:
If your debtor is an individual or a sole trader, the Pre-Action Protocol for Debt Claims (opens in a new tab) applies before you can go to court. It requires a formal letter of claim and gives the debtor 30 days to respond. A good agency builds this into its process for you.
Placing a recovery with STA
You can place a recovery online through our portal and track every case 24/7. Our average UK commercial recovery time is 3–4 weeks, and if a case needs to go legal, STA Legal picks it up under the same group.
CSA member since 1995 (member no. 238).
FCA authorised, firm reference 705183.
ICO registered, Z7268646.
ISO 27001 and ISO 9001 certified, plus Cyber Essentials Plus.
You can see all of our accreditations, with links to each register, on our trust page.
Do debt recovery agencies charge upfront or commission only?
Most commercial debt recovery agencies, STA included, work on commission only: no collection, no commission. Some charge upfront instead, or add fees on top. Neither model is wrong, but you should know which one you're signing up to.
Fee model | How you pay | Works well for | Watch out for |
|---|---|---|---|
Commission only (no collection, no commission) | A percentage of what's recovered | Most commercial debts, UK and international | Rates that rise for older or overseas debts |
Fixed fee per case | A flat fee upfront | Small, undisputed debts where a formal letter may be enough | You pay whether or not it works |
Subscription or retainer | A monthly fee | Ongoing, high-volume credit control | Paying in months with little to chase |
Solicitor-led legal action | Court fees plus legal costs | Disputed or high-value debts | Court fees are paid upfront, and a judgment doesn't guarantee payment |
Questions to ask any agency
Is there anything to pay if nothing is recovered?
Are there placement, admin or minimum fees?
What happens to the rate if a case needs legal action or an overseas agent?
Can the commission be claimed back from the debtor?
How quickly are recovered funds paid back to you?
How STA charges
We charge commission only on what we recover: 10% for UK commercial debts and 15% for international. There are no upfront fees, no subscription and no minimum spend, and recovered funds are paid back to you weekly by BACS.
For UK debtors, we pursue our costs and statutory interest from the debtor under the late payment legislation. If legal action is the right next step, STA Legal quotes a fixed fee from its published tariff, and nothing is issued without your go-ahead.
Ready to recover an unpaid invoice?
Start a recovery →Frequently asked questions
Can I claim debt collection fees back from the debtor?
For UK business-to-business debts, yes. The Late Payment of Commercial Debts (Interest) Act 1998 lets you claim reasonable recovery costs on top of statutory interest and fixed compensation. It doesn't apply to debts owed by consumers.
Is debt collection regulated in the UK?
Collecting consumer credit debts is a regulated activity that needs FCA authorisation. Commercial debt collection isn't FCA regulated, which is why CSA membership and its Code of Practice are a useful benchmark when you're choosing an agency.
How long does debt recovery take?
It depends on the debtor and how old the debt is. STA's average for UK commercial recovery is 3–4 weeks. Cases that need legal action take longer.
Is it worth using an agency for a small debt?
On a commission-only basis there's no upfront cost, so even smaller invoices can be worth placing. Going straight to court means paying the issue fee upfront, starting at £35 and rising with the size of the claim.
