How to chase an unpaid invoice (without damaging the relationship)
Every freelancer deals with late-paying clients eventually. How you handle it determines whether you get paid and whether you keep the relationship. Here's a proven escalation process that works.
Prevention first: set expectations upfront
The best time to handle a late payment is before it happens. Your contract and invoice should clearly state:
- Payment due date (Net 7, 14 or 30)
- Late payment interest (8% + Bank of England base rate for UK B2B)
- The fixed compensation charge (£40 for invoices under £999, £70 for £1,000–£9,999)
- Your preferred payment method
When clients know the consequences in advance, they tend to pay on time.
The escalation ladder
Stage 1 — Friendly reminder (1 day after due date)
Hi [Name],
Just a quick note to flag that invoice #[number] for £[amount] was due on [date]. It may have slipped through — please let me know if you need me to resend it or if there's anything else I can help with.
Thanks,
[Your name]
Stage 2 — Follow-up (7 days overdue)
Hi [Name],
Following up on my previous message — invoice #[number] for £[amount] is now 7 days overdue. Could you let me know when I can expect payment, or flag if there's an issue I can help resolve?
I've reattached the invoice for reference.
Thanks,
[Your name]
Stage 3 — Firm notice (14–21 days overdue)
Dear [Name],
Invoice #[number] for £[amount], due on [original date], remains unpaid after [X] days. I have contacted you on [dates] without resolution.
Under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to charge statutory interest at 8% above the Bank of England base rate from the due date, plus a fixed compensation charge of £[40/70/100].
Please arrange payment within 7 days to avoid further action.
Yours sincerely,
[Your name]
Stage 4 — Letter before action (30+ days overdue)
This is a formal legal warning that you intend to pursue the debt through the courts. Send it by email and recorded post. State the amount owed plus interest, give a 7-day deadline, and state you will file a Money Claim Online application if unpaid.
Money Claim Online (MCOL)
For UK debts up to £10,000, the online small claims process is straightforward and relatively cheap. Filing a claim often prompts immediate payment even from clients who've been ignoring you — the threat of a county court judgment (CCJ) on their business credit file is a powerful motivator.
When to cut your losses
For very small amounts — under £100 — the time and stress of pursuing may not be worth it. Write it off, learn from the client red flags you may have missed, and move on. For anything significant, always pursue through MCOL — it's designed exactly for situations like this.
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