How to Chase Late Invoice Payments in the UK: A Practical Guide

Chasing payments is the worst part of running a business. Here's a practical approach that gets results without damaging relationships.

Why Clients Pay Late

Before you chase, understand why:

• Invoice lost or overlooked
• Cash flow problems
• Dispute over work
• Waiting for their own clients to pay
• Disorganisation
• Deliberate delay (unfortunately common)

Knowing the reason helps you respond appropriately.

Step 1: Friendly Reminder (1-7 Days Overdue)

Most late payments are oversights. Start friendly.

Email Template

Subject: Quick reminder — Invoice #1234

Hi [Name],

Hope you're well. Just a quick reminder that invoice #1234 for £[amount] was due on [date].

I've attached a copy in case it's gone astray. If you've already sent payment, please ignore this.

Let me know if you have any questions.

Thanks, [Your name]

Step 2: Firmer Follow-up (7-14 Days Overdue)

If no response, follow up more firmly.

Email Template

Subject: Outstanding invoice #1234 — action required

Hi [Name],

I'm following up on invoice #1234 for £[amount], which is now [X] days overdue.

Please arrange payment within the next 7 days. If there's an issue with the invoice or work, let me know so we can resolve it.

Payment details are on the attached invoice.

Best regards, [Your name]

Step 3: Phone Call (14+ Days Overdue)

Sometimes email isn't enough. Call them.

Key points:

• Stay calm and professional
• Confirm they received the invoice
• Ask when to expect payment
• Get a specific date (not "soon")
• Follow up in writing to confirm

Step 4: Final Notice (21-30 Days Overdue)

Time to mention your legal rights.

Letter Template

FINAL NOTICE — Invoice #1234

Dear [Name],

Despite previous reminders, invoice #1234 for £[amount] remains unpaid, now [X] days overdue.

Please pay within 7 days. If payment is not received, I will:

• Add statutory interest at 8% above the Bank of England base rate
• Add the statutory compensation fee
• Consider debt recovery proceedings

These are my rights under the Late Payment of Commercial Debts (Interest) Act 1998.

To avoid this, please pay £[amount] by [date].

Yours faithfully, [Your name]

Your Legal Rights

Statutory Interest

8% + Bank of England base rate per year on overdue amounts.

Statutory Compensation

Recovery Costs

If your costs exceed the fixed sum, you can claim additional reasonable costs.

Step 5: Debt Recovery Options

If they still don't pay:

Debt Collection Agency

Agencies chase the debt for you, typically charging 15-50% of recovered amounts. Worth it for larger debts.

Small Claims Court

For debts under £10,000, use Money Claims Online. Court fees are often recoverable.

Letter Before Action

Send a formal letter giving 14 days to pay before legal proceedings.

Prevention is Better Than Cure

The best approach is preventing late payment:

• ✓ Invoice immediately
• ✓ Offer multiple payment methods
• ✓ Set clear terms upfront
• ✓ Take deposits for large projects
• ✓ Check credit before extending terms
• ✓ Send automatic reminders

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• Send automatic payment reminders
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• Accept online payments
• See when invoices are viewed

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