Polite reminder
A short, professional message asking a customer to pay an overdue invoice. It is the first and gentlest step of recovery, sent before any formal legal letter, and often the only step needed.
Glossary
The terms,
in plain English.
Chasing an unpaid invoice comes with its own vocabulary. Here is what each term means, grouped by where it shows up — from the first reminder to a County Court judgment.
In short
Recovering a B2B debt moves through a few clear stages: a reminder, a Letter Before Action, then — if needed — a County Court claim that can end in a judgment (a CCJ). Along the way you can add statutory interest and a fixed compensation sum. The definitions below explain each term as it appears.
Glossary
Before court — the letters
Letter Before Action (LBA)
A formal written warning that a County Court claim will follow if a debt is not paid or addressed by a stated deadline. It sets out the amount, the reason, any interest, and how to respond.
Pre-Action Protocol for Debt Claims
The set of steps the court expects a creditor to follow before issuing a debt claim — chiefly giving the debtor clear information and a fair chance to respond. Skipping it can affect costs if the matter reaches court.
Litigant in person
Someone who conducts their own court case without a solicitor acting for them. RobinReturn prepares solicitor-drafted documents for you to send and file as a litigant in person; it does not act as your legal representative.
Glossary
Money & interest
Commercial debt (B2B)
A debt owed by one business to another for goods or services. RobinReturn handles undisputed commercial debts up to £10,000 in England & Wales; it does not handle debts owed by private consumers.
Late Payment of Commercial Debts (Interest) Act 1998
The UK law that gives a business the right to claim interest and a fixed compensation sum when another business pays a commercial debt late.
Statutory interest
Interest a business can charge on a late commercial debt under the 1998 Act — the Bank of England base rate plus 8 percentage points, as simple (non-compounding) interest from the day payment became late.
Fixed compensation (s.5A)
A fixed sum claimable per late invoice under the 1998 Act, in addition to interest: £40 for debts under £1,000, £70 from £1,000, and £100 from £10,000.
Bank of England base rate
The UK's headline interest rate, set by the Bank of England. Statutory interest on a late debt is this rate plus 8 percentage points, using the base rate in force on the relevant reference date (30 June or 31 December).
HMCTS court fee
The fee paid to HM Courts & Tribunals Service to issue a County Court claim. It scales with the amount claimed and is separate from RobinReturn's fees — and is itself recoverable from the debtor.
Glossary
The court process
Small claims track
The County Court procedure for most claims up to £10,000. It is designed to be used without a solicitor, and the losing side does not usually pay the winner's legal costs.
County Court claim
A formal claim issued through the County Court to recover money owed. For a business debt it usually follows an unanswered Letter Before Action.
Claim Form (N1)
The court form that starts a County Court claim, setting out who is claiming, from whom, how much, and why. RobinReturn generates the N1 and its supporting documents for you to file.
Particulars of Claim
The part of a claim that explains the detail of what is owed and why — the dates, the contract or invoices, and how the sum is made up.
Money Claim Online (MCOL)
The government's online service for issuing and managing many County Court money claims. RobinReturn prepares your documents and guides you through MCOL; filing the claim itself is done by you through the MCOL service.
Default judgment
A judgment a claimant can ask the court to enter when the debtor does not respond to a claim within the time allowed. It results in a County Court Judgment without a hearing.
Glossary
Status & outcomes
Undisputed debt
A debt the customer does not genuinely dispute — they simply have not paid. RobinReturn is built for undisputed B2B debts.
Disputed debt
A debt the customer contests — for example, claiming the goods or work were not as agreed. A genuine dispute is not a simple late payment and may need legal advice; it falls outside RobinReturn's workflow.
County Court Judgment (CCJ)
A court's formal decision that a debtor owes a sum of money. A CCJ is recorded on the debtor's credit file and is often the point at which a debt is paid. RobinReturn's role ends at judgment.
Statute-barred (Limitation Act)
A debt that can no longer be pursued through the courts because too much time has passed — generally six years for a simple contract debt in England & Wales under the Limitation Act 1980. Acting before then matters.
FAQs
Quick
clarifications.
What is the difference between a Letter Before Action and a County Court Judgment?
A Letter Before Action is a formal warning sent before any court involvement, giving the debtor a final chance to pay. A County Court Judgment is a court's decision, made after a claim is issued, that the debtor owes the money.
Do I need a solicitor to use these processes?
Not for an undisputed small claim. The small claims track is designed to be used as a litigant in person, and RobinReturn prepares solicitor-drafted documents for you to send and file. RobinReturn is not a law firm and does not give legal advice.
What size of debt does this cover?
RobinReturn handles undisputed business-to-business debts up to £10,000 in England & Wales — the range that fits the County Court small claims track.
Know the terms?
Put them to work.
Start with a reminder on an undisputed B2B invoice. RobinReturn is not a law firm and does not give legal advice.