Late payment is one of the most persistent frustrations for UK sole traders and small business owners. You did the work, sent the invoice, and then — nothing. Days pass, then weeks. You need the money, but you also need the relationship.
Chasing payment does not have to be awkward or aggressive. Done right, it is just a normal part of running a business. Here is how to approach it.
Start before the due date
The most effective chasing happens before the invoice is overdue.
A short, friendly email a few days before the due date — “Just a reminder that invoice INV-0047 is due on Friday, please let me know if you have any questions” — does two things. It confirms the client received the invoice, and it removes any excuse for “I forgot.”
This is not nagging. It is professionalism. Most clients appreciate the heads-up.
First chase: the day it goes overdue
If the due date passes without payment, follow up the same day or the next working day. Keep the tone neutral — late payment is often an oversight, not a decision.
A simple message:
Hi [name], I wanted to check in on invoice INV-0047 for £[amount], which was due on [date]. Could you let me know when I can expect payment? Happy to answer any questions.
Short, clear, no drama. Attach the invoice again — sometimes they have genuinely lost it.
Second chase: one week later
If you have heard nothing after a week, follow up again. This time, it is reasonable to be slightly more direct:
Hi [name], following up on invoice INV-0047 for £[amount], now one week overdue. Could you confirm a payment date? If there is an issue with the invoice I am happy to discuss it.
At this point you are establishing a paper trail. Keep everything in writing.
Third chase: two to four weeks overdue
If you still have not been paid, it is worth calling — emails are easy to ignore. Follow up the call with a written summary: “As discussed, payment of £[amount] for invoice INV-0047 is now overdue. We agreed [outcome of the call].”
In the written follow-up, you can mention that you will need to take further steps if payment is not received by a specific date. Give them a deadline — seven days is reasonable.
Know your legal options
Once an invoice is significantly overdue, you have several options:
Statutory interest and compensation
Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest on overdue B2B invoices at 8% above the Bank of England base rate. You can also claim a fixed compensation fee:
- £40 for debts under £1,000
- £70 for debts between £1,000 and £9,999
- £100 for debts of £10,000 or more
You do not need to have stated these in your original terms — they are a statutory right for B2B transactions. Consumer debts (B2C) are handled differently.
Letter before action
Before taking legal action, you should send a formal letter before action (sometimes called a letter before claim). This states the amount owed, gives a final deadline (usually 14 days), and makes clear that court proceedings will follow if payment is not received.
You can write this yourself — there is no legal requirement to use a solicitor. Keep it factual and professional.
Small claims court
For debts up to £10,000 in England and Wales, the small claims track is the most practical route. You can make a claim online via the Money Claim Online (MCOL) service. The fee is based on the value of the claim and is recoverable if you win.
The process is designed to be used without a solicitor. If the client does not respond or contest the claim, the court will issue a default judgment in your favour. From there, you can apply for enforcement if they still do not pay.
Debt collection agencies
Some sole traders use debt collection agencies for persistently overdue accounts. Agencies typically take a percentage of what they recover (often 10–25%), so it only makes sense for larger debts or where court feels disproportionate.
Practical things that help
Clear payment terms from the start. If your invoice says “payment due within 30 days of invoice date,” there is no ambiguity. If it says “due on receipt,” you will spend time arguing about what that means.
A record of everything. Keep copies of the original invoice, every follow-up message, and any responses. If it goes to court, this is what you will rely on.
Separate the relationship from the money. Late payment is usually not personal. Keep your chasing professional and give clients a clear, easy way to resolve it. Most will.
Know when to let a client go. If a client is a persistent late payer, the time you spend chasing them has a cost. Factor that in when you are deciding whether to work with them again.
Chasing invoices is uncomfortable, but it is a normal part of running a business. The key is having a consistent process — so you follow up at the right times, keep records, and know your options if it escalates.
Griffio keeps track of which invoices are sent and which are overdue, so nothing slips through the cracks.