From letter before action to court: how long it takes, what it costs, and when invoice finance is faster

### Letter before action to judgment: each step, its minimum period and the rule behind it

| Step | What happens | Minimum period | Rule |
| --- | --- | --- | --- |
| 1. Letter before claim | You write with the amount, how it is worked out, and what you want | Day 0 | PD Pre-Action Conduct para 6(a) |
| 2. Response period: limited company or LLP | The debtor replies, pays or disputes | 14 days in a straightforward case | PD Pre-Action Conduct para 6(b) |
| 2. Response period: sole trader or individual | Reply Form and information sheet go with the letter | 30 days from the date on the letter | Pre-Action Protocol for Debt Claims paras 1.1, 3.4 |
| 3. Issue the claim | Money Claim Online or form N1, fee paid on issue | The next day, at the earliest | EX50 fees order 1.1 |
| 4. Deemed service | Claim form treated as served | 2nd business day after posting | CPR 6.14 |
| 5. Acknowledge or defend | Debtor acknowledges service or files a defence | 14 days after service | CPR 10.3 |
| 6a. No response: default judgment | You request judgment | Once the time to respond has passed | CPR 12.3 |
| 6b. Acknowledged: defence due | Defence filed, or default judgment available | 28 days after service, up to 28 more by agreement | CPR 15.4, 15.5 |
| 7. Payment under a judgment | Debtor must pay | 14 days from the judgment, unless it says otherwise | CPR 40.11 |
| 8. Defended: trial | Mediation (small claims), allocation, hearing | Median 41 weeks from issue for small claims, 55.9 weeks for other tracks | MoJ Civil Justice Statistics, April to June 2026 |

Source: Civil Procedure Rules and Practice Directions (justice.gov.uk); EX50 (GOV.UK); Ministry of Justice Civil Justice Statistics Quarterly (https://www.justice.gov.uk/courts/procedure-rules/civil/rules/pd_pre-action_conduct)

Times run in calendar days except deemed service, which counts business days. If a sole trader says they are seeking debt advice, the protocol says not to issue for at least 30 days after the completed Reply Form or any documents they asked for (para 4.2). If they reply but you cannot agree, give at least 14 days' notice before issuing (para 8.2).

### Statutory late payment interest rate by the half-year in which interest started

| Interest started in | Reference date | Bank Rate on that date | Statutory rate |
| --- | --- | --- | --- |
| July to December 2026 | 30 June 2026 | 3.75% | 11.75% |
| January to June 2026 | 31 December 2025 | 3.75% | 11.75% |
| July to December 2025 | 30 June 2025 | 4.25% | 12.25% |
| January to June 2025 | 31 December 2024 | 4.75% | 12.75% |
| July to December 2024 | 30 June 2024 | 5.25% | 13.25% |
| January to June 2024 | 31 December 2023 | 5.25% | 13.25% |
| July to December 2023 | 30 June 2023 | 5% | 13% |
| January to June 2023 | 31 December 2022 | 3.5% | 11.5% |

Source: Rate of Interest (No. 3) Order 2002 art 4 (legislation.gov.uk); Bank Rate history (Bank of England) (https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp)

Simple interest, charged per day on the amount owed. An invoice that fell due in, say, November 2025 carries 12.25% for as long as it stays unpaid, even though the Bank Rate has since fallen.

### Worked example: the unpaid invoice

| Input | Example figure |
| --- | --- |
| Invoice total owed, including VAT | £8,400.00 |
| Agreed payment date | 31 July 2026 |
| Date on the letter before claim | 28 September 2026 |
| Debtor | Limited company |
| Other undisputed invoices to other customers | £36,000 |
| Advance rate (placeholder, not a market figure) | 80% |

Invented figures. The 80% advance rate is a placeholder, not a view on what funders offer.

### Worked example: £8,400 invoice from letter before claim to judgment

| Step | Earliest date | Detail |
| --- | --- | --- |
| Statutory interest starts | Sat, 1 August 2026 | Bank Rate 3.75% on 30 June 2026 + 8% = 11.75% a year; £2.70 a day |
| Letter before claim | Mon, 28 September 2026 | 59 days late; interest so far £159.54 |
| Response period ends | Mon, 12 October 2026 | 14 days |
| Claim issued | Tue, 13 October 2026 | Claim £8,670.10 (debt, £200.10 interest, £70 fixed sum); issue fee £455 |
| Deemed served | Thu, 15 October 2026 | Second business day after posting |
| Acknowledgment or defence due | Thu, 29 October 2026 | 14 days after service |
| Default judgment can be requested | Fri, 30 October 2026 | If nothing has been filed |
| Earliest payment date under a default judgment | Fri, 13 November 2026 | 46 days after the letter, if judgment is entered the day you ask |
| If acknowledged: defence due | Thu, 12 November 2026 | Up to Thu, 10 December 2026 with an agreed extension |
| If defended: median trial date | Tue, 27 July 2027 | Small claims track; 41 weeks after issue; hearing fee £346 |
| Invoice finance on the other invoices | When your facility pays out | £28,800 advance at the placeholder rate |

Source: Market Invoice, applying the rules, fees and rates cited on this page to the example figures

Against a company that does not respond, the earliest payment deadline is 46 days after the letter and 105 days after the invoice fell due. If it defends, the median small claims wait puts a trial about 10 months after the letter.

### Which route is faster, by situation

| Your situation | Faster route | Why |
| --- | --- | --- |
| Debtor is solvent, the debt is not disputed, you can wait about 7 weeks | Letter before claim, then a money claim | 94% of civil court judgments are default judgments; interest and the fixed sum go into the claim |
| Debtor has gone quiet and you need cash this month | Invoice finance on your other, undisputed invoices | The court path cannot pay before the dates above; a facility pays on invoices that are still in date |
| You already have a facility and this invoice is on it | Follow your funder's collections terms before you sue | Issuing proceedings can take the debt out of funding (Aldermore 5.5.3) |
| The debt is disputed | Pre-action exchange, mediation or a defended claim | Both funder contracts we read let the funder hand a disputed debt back to you (recourse), and a defended small claim has a median of 41 weeks from issue to trial |
| Debtor is a company, owes more than £750 and does not dispute it | Statutory demand, if you are ready to petition | 3 weeks to pay under s123(1)(a); a petition fee of £352 plus the deposit |
| You want the problem gone and accept a discount | Sell the debt | A buyer prices in the delay and the risk; see the debt sale guides |

Source: Market Invoice, from the rules, statistics and funder terms cited on this page

A summary for planning. It is general information, not legal advice.

### Money claim issue fees by claim value, including interest

| Claim value | 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 |
| More than £200,000 | £10,000 |

Source: EX50 civil court fees, fees order 1.1 to 1.2 (GOV.UK) (https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50/civil-court-fees-ex50)

Money Claim Online takes claims up to £99,999.99. The 5% fee is rounded down to the nearest penny.

### Hearing fees if the claim is defended

| Track and claim value | Hearing fee |
| --- | --- |
| Small claims, up to £300 | £27 |
| Small claims, £300.01 to £500 | £59 |
| Small claims, £500.01 to £1,000 | £85 |
| Small claims, £1,000.01 to £1,500 | £123 |
| Small claims, £1,500.01 to £3,000 | £181 |
| Small claims, more than £3,000 | £346 |
| Fast track | £619 |
| Intermediate track or multi-track | £1,334 |

Source: EX50 civil court fees, fees order 2.1 (GOV.UK) (https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50/civil-court-fees-ex50)

Payable by the claimant by the date the court sets. If you settle before it is due, you do not pay it.

### Fees to enforce a judgment the debtor has not paid

| Step | Fee |
| --- | --- |
| Order for the debtor (or a company officer) to attend court and give information | £69 |
| Warrant of control (county court enforcement agents) | £96 |
| Writ of control (High Court enforcement) | £82 |
| Third party debt order (freezes money in the debtor's account) | £139 |
| Charging order (on the debtor's land or property) | £139 |
| Attachment of earnings (individuals only) | £139 |
| Winding-up petition against a company (plus the official receiver's deposit) | £352 |

Source: EX50 civil court fees, fees orders 3, 7 and 8 (GOV.UK) (https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50/civil-court-fees-ex50)

GOV.UK says a county court warrant of control is for debts of £5,000 or less and a High Court writ for at least £600; between those, you can choose.