A no win, no fee arrangement, sometimes called a conditional or contingency fee, means the recovery partner’s main fee is only payable if money is recovered. If nothing comes back, you usually pay nothing for their time. The detail lives in the written agreement, and that is where the differences between partners show.

What the phrase means

In most arrangements the partner charges a percentage of the amount recovered, sometimes with a minimum charge. The percentage can depend on the age and size of the debt, whether it is disputed and how much work is expected. Because the fee depends on success, partners assess each debt before they accept it, and they can decline debts they think are unlikely to be recovered.

We do not publish a standard percentage, because the independent partner sets their own terms for your enquiry and confirms them in writing before you decide.

What is usually included

  • Formal written demands to the debtor, including a letter before action.
  • Telephone and email contact to negotiate payment or a payment plan.
  • Collecting and accounting for the money recovered.
  • Keeping you informed of progress.

What often isn’t

  • Court fees and legal costs if the debt has to be litigated. These are often charged separately or need your approval first.
  • Enforcement after a judgment, such as bailiffs or charging orders.
  • Tracing a debtor who has moved, and other third-party costs.
  • Cancellation. Some agreements charge if you withdraw, settle directly with the debtor or stop the process part way.

Also check how “recovered” is defined. If the debtor pays you directly after the partner has started work, the fee usually still applies.

When it suits a business

No win, no fee works best for undisputed invoices owed by a company that is still trading, where you want to avoid paying for recovery up front. It is less suited to small sums, where a percentage fee may not justify the partner’s time, and to disputed debts or insolvent debtors, where recovery is uncertain and the partner may propose different terms or decline.

Remember that statutory interest and compensation can be claimed on top of the debt. Depending on the agreement, that can offset part of the fee.

Five questions to ask before you sign

  1. What counts as a successful recovery, including part payments and payments made directly to me?
  2. How is the fee calculated, what does it apply to, and is VAT additional?
  3. Which costs are outside the fee, and will you ask before incurring them?
  4. What do I pay if nothing is recovered, or if I withdraw?
  5. When and how is recovered money paid to me, and what reporting will I get?

Our fees page expands on each of these.

Where we fit

No Win No Fee Services is an introduction service. We do not carry out recovery work or set the partner’s fees. We help businesses owed money by a limited company start the conversation, and where appropriate we introduce an independent partner who assesses the debt and offers their terms. We may receive a referral fee for the introduction. You decide whether to go ahead, with nothing to pay for the enquiry itself.

Want the terms before the commitment?

Tell us about the invoices and the company that owes you. If an introduction is appropriate, the partner explains their fees before you decide anything.

Start your enquiry

This post provides general information, not legal or financial advice. Terms vary between partners, so rely on the written agreement you are offered. No Win No Fee Services makes introductions; independent partners assess and provide recovery services.