Aged debt on a commercial ledger usually means an invoice unpaid well past ordinary credit terms — often 90 days or more after the due date. The file is no longer a polite reminder problem. It is a cash-flow decision: tighten the evidence, assert statutory late-payment rights where they apply, send a proper pre-action letter, then instruct a partner or decide on a court claim.
Debt Collection UK (a trading style of PASECOM GROUP LTD) introduces B2B files to independent partner agencies. We are not solicitors, we are not authorised by the Financial Conduct Authority, and we do not collect consumer credit. PASECOM GROUP LTD was incorporated on 7 April 2026. We introduce commercial claims; we do not issue proceedings. Partners collect. Recovery is not guaranteed.
This guide is for undisputed business-to-business balances. For the company path generally, see how to recover unpaid invoices from a limited company. If a final demand was already ignored, see what to do when a limited company ignores a final demand.
What “aged debt” means for B2B cash flow
In credit control, aged debt is the slice of unpaid invoices in the older columns of the aged debtors report — typically 60, 90, or 120+ days past due. A 90-day-late invoice is still the same legal debt, but commercially goodwill has usually worn thin and you need a clear paper trail before you escalate.
Age alone does not create a new cause of action. It does tell you informal chasing has failed, so stop vague “just chasing” emails and move to a documented sequence.
Re-check the due date and the evidence pack
Before you escalate aged debt unpaid invoices, confirm when the invoice became overdue under the contract or, if no period was agreed, under the Late Payment framework summarised on GOV.UK late commercial payments. Related reading: when a commercial invoice is legally late.
Assemble (or refresh) the pack: the invoice and statement; purchase order, signed terms, or email acceptance; delivery or performance evidence; prior reminders and any final demand; and any written admission of the balance. If the wrong legal entity was billed, fix that before a letter before action. A partner or court process is only as strong as the proof you can still show.
Late Payment Act rights still matter after 90 days
On a qualifying commercial contract for goods or services, the Late Payment of Commercial Debts (Interest) Act 1998 can add statutory interest and fixed compensation once payment is late. GOV.UK explains the interest and debt recovery costs route in plain terms.
Section 5A sets fixed compensation once statutory interest begins to run: £40, £70 or £100 per qualifying late payment, by debt band, with a further right to claim reasonable recovery costs not met by that sum. Interest is generally 8% above the relevant Bank of England base rate snapshot. Age does not remove those rights where the Act applies — state them clearly in your next formal letter. More: late payment compensation. Asserting interest strengthens a proportionate chase; it does not compel payment or transfer a partner’s commission onto the debtor. Confirm the Act applies before you quote figures.
Move from reminders to a Practice Direction LBA
After 90 days of unpaid commercial debt, the next formal step against another business (especially a limited company) is usually a proportionate letter before action under Practice Direction – Pre-Action Conduct and Protocols: set out the claim, enclose or list key documents, say what you want and by when, and allow a reasonable time to reply — typically 14 days in a straightforward case.
The Pre-Action Protocol for Debt Claims applies to claims against individuals, including sole traders. Do not send that sole-trader pack to a limited company. Company-versus-company files follow the Practice Direction. Detail: letter before action for business debts and the money page letter before action.
Diarise the deadline. Silence after a proper LBA is a commercial signal to escalate, not a court order for payment.
Limitation: why you should not leave aged invoices forever
Age also raises a hard stop risk. In England and Wales, many simple contract claims become statute-barred after six years under the Limitation Act 1980, subject to exceptions and to when time starts to run. GOV.UK’s guide to making a court claim for money sits alongside that framework if you later decide to issue.
Ninety days is nowhere near six years — but files that drift for years without a decision become difficult. Treat 90-day aged debt as a prompt to decide, not to hope.
When to instruct a partner vs issuing a court claim
Once the evidence is tight, Late Payment Act figures are stated where they apply, and a proper LBA has timed out with no genuine dispute:
- 1. Partner instruction — introduce the file for pre-legal commercial chase via business debt collection. On files introduced through this site, partners usually work on a fixed percentage / commission of what they recover (often structured as no-collection, no-fee), agreed in writing before they start. Marketing on this site describes 15% only when the client is paid. This guide is free. Recovery is not free and is not guaranteed.
- 2. County court claim — you decide whether to issue. GOV.UK explains how to claim money owed. Issuing is not payment. Court fees and solicitor costs are separate from a partner’s contingent commission. We do not issue proceedings.
Partners can chase professionally; they cannot pretend to be High Court Enforcement Officers, invent FCA authorisation, or guarantee recovery.
Pause if disputed or the debtor looks insolvent
Pre-legal collection is for undisputed commercial debt. Pause where the debtor raises a genuine written dispute; you billed the wrong entity; or Companies House shows a formal insolvency process. A late, undocumented excuse after months of silence is not a new payment term — document it, reply in writing, and only instruct on the clean balance you can prove.
A calm sequence for invoices over 90 days late
- 1. Confirm due date, legal entity, and that the balance is still undisputed.
- 2. Refresh the evidence pack and the aged debtors note of every chase so far.
- 3. Add Late Payment Act interest and compensation where the contract qualifies.
- 4. Send a Practice Direction letter before action; diarise about 14 days.
- 5. If still unpaid, instruct a partner on fixed-percentage terms, or decide whether to issue a claim yourself.
- 6. Stop escalation if insolvency or a real dispute appears.
Frequently asked questions
What counts as aged debt on unpaid invoices? In practice, aged debt means commercial invoices that have moved into the older columns of your aged debtors report — often 60, 90, or 120+ days past the due date. The legal claim is still the unpaid invoice; the age tells you informal chasing has failed.
Does waiting 90 days weaken my Late Payment Act claim? No. Where the Act applies, statutory interest and fixed compensation can still be claimed on a qualifying late commercial payment. State them clearly in your next formal letter. Confirm the contract qualifies first.
Is a 90-day-late invoice too old for a debt collection partner? Not by age alone. Partners need a clean, undisputed commercial file with proof. Ninety days is a common instruct point, not a bar — re-check evidence and limitation if the file has drifted much longer.
Should I send another polite reminder after 90 days? Usually no. Move to a documented Practice Direction LBA (or the Debt PAP pack if the debtor is an individual/sole trader), then decide on partner instruction or court.
Is recovery free on aged commercial debt? No. This guide is free. Partner recovery is usually a fixed percentage / commission of recovered sums (often no-collection, no-fee; marketing: 15% only when the client is paid), agreed before they start. Recovery is not guaranteed.
Can Debt Collection UK sue the debtor for me? No. We introduce B2B files to independent partner agencies. We are not solicitors and we do not conduct litigation. You remain the creditor if court action is needed.
When a commercial invoice has sat unpaid for 90 days or more, upload the invoice and terms rather than another polite chase. This guide is free. Instructing a partner is not: fees are usually a fixed percentage of what they recover (often no-collection, no-fee; 15% only when the client is paid), agreed before they start. Recovery is not guaranteed.