Debt Recovery: No Win No Fee
Commission-only debt recovery means you pay nothing unless money is recovered. Here is exactly how this model works and what to look for in an agency.
What 'no win no fee' means in debt recovery
In the context of commercial debt recovery, 'no win no fee' (also called commission-only or contingency-based recovery) means the agency charges nothing upfront and takes a percentage commission only from amounts actually recovered. If they recover $0, you pay $0. If they recover $10,000 at a 15% commission rate, they keep $1,500 and remit $8,500 to you.
How the commission model works in practice
You refer an account (the debt, debtor details, supporting documents). The agency attempts recovery by letter, phone, email, and SMS. If payment is received, the commission is deducted from the recovered amount and the net proceeds are paid to you. The agency keeps its records so you always know what is owed, what has been received, and what the fee will be.
What is included in a standard commission
Outbound letters, calls, emails, and SMS to the debtor. Skip-tracing if contact details are outdated. Negotiation of payment plans. Account management and reporting. Preparation of documentation for escalation if needed. These services are covered by the commission — you should not be paying extras for these.
What is NOT included (watch for these)
Legal proceedings — court filing fees and solicitor fees are separate if escalation is needed. Disputed debts requiring mediation or tribunal attendance. International tracing. These are legitimate additional costs but should be disclosed and agreed before incurred.
Commission rates — what is normal
Typical rates in Australia range from 10–25% depending on account age, amount, and complexity. Lower rates (10–15%) for fresh, large, or high-volume accounts. Higher rates (20–25%+) for aged, complex, or previously-attempted accounts. Rates should be disclosed in writing before any work starts.
Red flags
High upfront registration fees. Vague commission structures. Fees charged per contact attempt. 'Investigation fees' before work begins. No written engagement terms. A legitimate no-win-no-fee agency puts everything in writing upfront.
Frequently asked questions
What happens if only part of the debt is recovered?
Commission applies to the amount actually collected. If a $20,000 debt is partially recovered at $12,000 and a 15% rate applies, the commission is $1,800. The remaining $8,000 can continue to be pursued or the account can be closed.
Does no win no fee include legal action?
Typically no. The commission-only model covers agency recovery (letters, calls, negotiation). If legal action is required — court filings, solicitor representation — these costs are separate and must be agreed separately.
Can I negotiate the commission rate?
For large accounts or portfolio placements, rates are often negotiable. Single small accounts are typically at the agency's standard rate. Ask for the rate schedule upfront and compare it against at least one other agency.
Ready to recover your debts?
Refer an account today. No upfront fee, no lock-in — commission only if we recover.