You have finished the work and sent the invoice. The due date has passed, but the money has not arrived. Check the details first, send a clear reminder and keep a record of the reply. If the customer raises a genuine dispute, deal with it before escalating.

The messages below are templates you can adapt. They are not customer correspondence or formal letters before claim.

Before you chase

Check the invoice against your quote, agreed payment terms and payment records. Make sure:

• the payment is overdue under the terms you agreed;

• the invoice went to the right person or accounts address;

• the amount still owed allows for any deposit or part payment;

• the bank details and payment reference are correct; and

• you have the agreed scope, approval of extra work and relevant job records to hand.

Correct any error before sending a reminder. If the customer disputes the work or the price, ask them to explain the issue and respond to that point. Repeating a standard payment demand will not resolve it.

Keep copies of the invoice and your correspondence. Note the date of any phone call, who you spoke to and what was agreed.

Step 1: a polite reminder

Once payment is overdue, send a short message with the invoice number, outstanding amount and original due date. Attach the invoice again if that helps, and make the payment instructions easy to find.

Template: first reminder

Hi [name], invoice [number] for £[amount outstanding] was due on [due date]. I’ve attached it again. Please let me know when I can expect payment, or if you have a question about the invoice. Thanks, [your name].

Replace every bracketed field and check the amount before sending. Only say the invoice is attached if you have attached it.

If there is no reply, try a call. An invoice can be held up by a missing reference, a query or the wrong contact. Ask what is stopping payment and who can resolve it. The Small Business Commissioner’s guidance recommends checking the terms, making contact and recording any payment arrangement.

Step 2: a firmer written reminder

If the invoice remains unpaid and you have no useful reply, follow up in writing. State the balance and ask for a response by a clear date. Keep the language factual and do not threaten action you have not decided to take.

Template: follow-up reminder

Hi [name], £[amount outstanding] is still unpaid on invoice [number], due on [due date]. Please confirm by [reply date] when payment will be made. If there is a problem with the invoice, let me know so we can address it. Thanks, [your name].

The reply date is a practical follow-up date, not a statement of a legal deadline. Keep a copy. If the customer proposes instalments, write down the amounts and dates you both agree, then record each payment as it arrives.

TradePilot shows outstanding invoices and prepares reminder wording. You choose the message, check it and send it yourself. You can also use the late-payment letter tool as a starting point for wording; check it against your circumstances before using it.

Step 3: a formal letter before action

Before taking formal action, establish who owes the money and where the claim would be made. A householder, a sole trader and a limited company can require different treatment. England and Wales, Scotland and Northern Ireland also have different court procedures.

In England and Wales, the Pre-Action Protocol for Debt Claims covers a business claiming a debt from an individual, including a sole trader. It requires specified information and documents, with normally at least 30 days for an initial reply. Further obligations can apply after a reply.

That protocol excludes debts covered by another pre-action protocol, including construction and engineering disputes. Check which process applies before setting a deadline. A generic final reminder is not automatically a compliant letter before claim.

If you are unsure, get advice on the documents, response period and next step. Do not assume that sending a seven- or fourteen-day demand makes a court claim ready to issue.

Interest and recovery costs for business debts

For qualifying business-to-business debts, statutory interest is normally eight percentage points above the Bank of England base rate. A different contractual interest rate can affect whether statutory interest is available. Check the applicable rate and contract before adding a charge. GOV.UK explains commercial late-payment interest.

Fixed recovery compensation can also be available:

• £40 for a debt below £1,000;

• £70 for a debt from £1,000 to £9,999.99; and

• £100 for a debt of £10,000 or more.

See the official recovery-cost guidance. These commercial rules do not automatically apply to a domestic consumer. Do not add business-debt interest or compensation to a householder’s invoice simply because you are a business.

When to pause and get advice

Pause before escalating if the customer disputes the work, your evidence is incomplete, the customer may be insolvent, or you are unsure which process applies. Get advice if the amount could materially affect your business.

A court claim takes time and can involve fees. Consider whether a documented payment arrangement or another way of resolving the dispute is appropriate. The Small Business Commissioner may be able to help a small business with an unresolved payment dispute involving a larger business; its service does not cover every debt.

Make the next invoice easier to collect

Agree payment terms before starting. Put the due date and payment reference on the invoice, get approval for changes before doing extra work, and keep the customer, quote, job and invoice connected.

Check your outstanding balances regularly and record payments before sending another reminder. Clear records cannot guarantee payment, but they give you and the customer a better basis for resolving a query.

Written by Chris, founder of TradePilot.

This guide is general information, not legal advice. Official sources checked on 16 September 2026. Check the linked guidance for changes and get advice where the circumstances of a debt are unclear.