Legal options in this article (small claims court, statutory interest) 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 for small businesses. Here is how to handle it without damaging the relationship — or letting it drag on indefinitely.
Step 1 — Send a polite reminder
A few days after the due date, send a brief reminder. Keep it friendly — most late payments are due to oversight, not intentional non-payment. Resend the invoice link and ask if they have any questions.
Step 2 — Follow up more firmly
If the invoice is 2 weeks overdue with no response, follow up again and make it clear payment is now overdue. Mention the due date and ask when they expect to pay.
Step 3 — Phone call
At 3–4 weeks overdue, pick up the phone. Emails are easy to ignore. A phone call is harder to avoid and often resolves the issue quickly.
Step 4 — Formal letter before action
If the client still has not paid, send a formal letter before action. This is a written notice that you intend to pursue the debt through the courts if it is not paid within a set period (usually 7–14 days). Many clients pay at this stage.
Step 5 — Small claims court
In the UK, you can use the Money Claim Online service to pursue debts up to £10,000 through the small claims court. The filing fee is relatively small and is recoverable if you win.
Accepting online card payments through BillSend eliminates late payment entirely for those invoices — clients pay at the point of receiving the invoice.
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