Legal options in this article (letters before action, statutory interest, small claims court) are based on UK law. The process varies by country — check the rules that apply where you operate.
Late payment is one of the most common problems facing freelancers and small businesses. Research consistently shows that most late payments are due to oversight rather than deliberate non-payment — so a systematic, professional approach gets results without burning bridges.
Step 1 — Send a polite reminder (1–3 days overdue)
A brief, friendly email checking the invoice has been received. Assume good faith — the most common reason for late payment is the invoice sitting in a spam folder or being overlooked. Resend the invoice and ask them to confirm receipt.
Step 2 — Firm follow-up (7–14 days overdue)
If there is still no payment, follow up more directly. Reference the invoice number, the amount, and the due date. Ask when they expect to pay. Keep the tone professional but make it clear payment is overdue.
Step 3 — Phone call (14–21 days overdue)
A phone call is far harder to ignore than an email. Speak to the right person — accounts payable, the business owner, or whoever you dealt with. Confirm they have the invoice and agree on a specific payment date.
Step 4 — Letter before action (30+ days overdue)
If all else fails, send a formal letter before action (LBA) stating that you intend to pursue the debt through the courts if payment is not received within 7 to 14 days. State the amount owed plus any interest you intend to claim. Many clients pay at this stage.
Step 5 — Small claims court or debt recovery
In England and Wales, debts up to £10,000 can be claimed through the small claims track, online at moneyclaim.gov.uk. The process is straightforward and the court fee is added to your claim, so you get it back if you win. Scotland and Northern Ireland have their own simple procedures with lower limits. For larger debts, a solicitor's letter or professional debt recovery agency may be more appropriate.
Claim statutory interest from business clients
If your client is a business (not a consumer), the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim interest at 8% above the Bank of England base rate on overdue invoices, plus fixed compensation of £40, £70 or £100 depending on the size of the debt. You can claim it even if your terms did not mention it — but stating it on your invoices often prompts faster payment in the first place.
Putting a card payment link in your invoice payment instructions removes most late payment — clients can pay the moment they open the invoice.
Frequently asked questions
What is the recommended first step for chasing an unpaid invoice?
Send a brief, friendly email 1 to 3 days after the due date checking the invoice has been received, since the most common reason for late payment is the invoice sitting in a spam folder or being overlooked.
When should I call a client about an unpaid invoice rather than emailing?
At 14 to 21 days overdue, a phone call is recommended since it is far harder to ignore than an email — speak to the right person and agree on a specific payment date.
What is a letter before action and when should I send one?
A letter before action is a formal letter sent when an invoice is 30 or more days overdue, stating that you intend to pursue the debt through the courts if payment is not received within 7 to 14 days.
Can I charge interest on a late invoice?
In the UK, if your client is a business, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim interest at 8% above the Bank of England base rate plus fixed compensation of £40, £70 or £100 depending on the debt size.
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