By
August 24, 2026
How Can a UK Company Chase an Unpaid Invoice?
If a customer has not paid an invoice by the agreed due date, a UK limited company should follow up promptly and use a clear escalation process.
Most unpaid invoices should start with a polite reminder before moving to more formal debt-recovery action.
Before contacting the customer, confirm:
Once the invoice becomes overdue, send a short reminder.
For example:
Subject: Invoice INV-001 – Payment Overdue
Our records show that invoice INV-001 for £2,500 was due on 20 August 2026 and remains outstanding.
Please arrange payment at your earliest convenience. A copy of the invoice is attached.
A professional reminder is often enough to resolve an administrative delay.
If there is no response, contact the customer directly.
Ask whether:
Keep records of emails, calls and any payment promises.
If payment is still outstanding, send a firmer notice stating:
Invoice number → Amount outstanding → Original due date → New payment deadline → Next steps if unpaid
The UK's Small Business Commissioner recommends escalating from reminders and direct contact to a formal final demand where necessary.
For qualifying B2B invoices, a UK company may be entitled to charge statutory late-payment interest.
The statutory rate is generally:
8% per year + Bank of England base rate
Fixed debt-recovery compensation may also be available:
Debt under £1,000 → £40
£1,000–£9,999.99 → £70
£10,000+ → £100
Check your contract before applying statutory interest because contractual late-payment provisions can affect what can be claimed.
If the customer accepts the debt but cannot pay everything immediately, you could agree instalments.
For example:
£6,000 outstanding
£2,000 now → £2,000 next month → £2,000 final payment
Put the arrangement in writing and specify the payment dates.
If reminders are ignored, the next step may be a formal Letter Before Action or Letter Before Claim.
It should clearly identify the debt, state what payment is required and explain that legal proceedings may follow if the matter is not resolved.
The precise pre-action requirements depend on the debtor and jurisdiction, so make sure the correct procedure is followed before starting a claim.
If the invoice remains unpaid, options can include:
Legal action should usually be a last resort because costs and recovery prospects need to be considered.
Do not leave overdue invoices unattended for months.
A simple internal process could be:
Due date passes → Friendly reminder → Second reminder/contact → Final demand → Formal recovery
The exact timing should reflect your contract, customer relationship and the amount owed.
Preventing late payment is often easier than recovering debt.
Before starting work:
For higher-value projects, consider deposits or milestone payments rather than waiting until the entire project is completed before receiving anything.
A UK company can chase an unpaid invoice using a clear escalation process:
Check invoice → Send reminder → Contact customer → Send final demand → Consider interest → Offer payment plan → Letter Before Action → Debt recovery or court action
The key is to act promptly, remain professional and keep written records of every attempt to collect the outstanding payment.
