Short answer: if you are an overseas business owed money by a UK limited company, start by checking the debtor on Companies House and confirming which law governs your contract. Then send a clear letter before action, and if that fails, instruct a UK-based partner agency or a UK solicitor. Court claims in England and Wales generally need a UK address for service, which is one reason local help is useful.
Cross-border trade is routine, and so are cross-border late payments. If your business is based outside the UK and a UK company has not paid your invoice, the distance can make the problem feel harder than it is. This guide explains the practical steps to recover an unpaid invoice from a UK company, the legal points to check, and when to bring in help on the ground.
Debt Collection UK is a trading name of PASECOM GROUP LTD. We introduce unpaid invoices owed by UK limited companies, LLPs and PLCs to independent partner agencies, who collect. We are not solicitors and we are not authorised by the FCA. This is general information, not legal advice.
Which law and which court apply?
Start with your contract or terms. Many contracts say which country’s law governs them and which courts have jurisdiction. If your terms choose English law and the courts of England and Wales, the path is relatively clear. If they choose your own country’s law and courts, you may be able to sue at home, but you would then have to get that judgment recognised and enforced in the UK, which adds time and cost.
The UK also has three separate legal systems: England and Wales, Scotland, and Northern Ireland. A company registered in Scotland, for example, is usually pursued through the Scottish courts. Check where the debtor is registered.
If there is no written contract, or the position is unclear, take advice before issuing any proceedings.
How do you check the UK company?
Companies House is public and online. Search for the debtor and note:
- the exact registered name and company number;
- the registered office address, which is the right address for formal letters;
- whether the company is active, or has a proposal to strike off or an insolvency notice;
- whether its accounts are up to date, and who its directors are.
Also search The Gazette for insolvency notices. If the company is in liquidation or administration, collection usually stops and you claim through the insolvency practitioner instead.
What should your letter before action say?
If the claim may end up in the courts of England and Wales, follow the Practice Direction – Pre-Action Conduct and Protocols. Write to the registered office with the invoice details, the total, any interest you are claiming and how it is calculated, and give a reasonable period to pay or explain any dispute: 14 days in a straightforward case. Send it by email and tracked international post, and keep proof.
Our guide to the final demand letter covers the content in more detail and includes a template for limited-company debtors.
Can an overseas business claim UK late payment interest?
Possibly. The Late Payment of Commercial Debts (Interest) Act 1998 applies to qualifying business contracts, and section 12 deals with contracts that have an international element. In broad terms, where the contract is governed by the law of part of the UK, the Act can apply, but there are exceptions where UK law was chosen only to obtain its benefits without a significant connection. If it applies, you may claim statutory interest at 8% above the Bank of England base rate, fixed compensation under section 5A, and reasonable recovery costs. If your contract is governed by another country’s law, check what that law provides instead.
What about currency?
If you invoiced in euros, dollars or another currency, state the amount in that currency in your letter and keep the original figure. If proceedings become necessary, take advice on how the claim should be expressed and on exchange-rate issues before you issue.
Why is local help useful?
A UK-based partner agency brings practical advantages:
- Same time zone and familiarity. It can phone the debtor during UK business hours and knows how UK companies usually handle supplier payments.
- Knowledge of UK procedure. It knows the pre-action rules and how county court claims and enforcement work.
- A UK address for service. Under CPR Part 6, parties to a claim in England and Wales generally need to give an address for service in the UK. A UK solicitor working with the agency can provide this if a claim is needed.
- Access to court routes. If pre-legal work fails, a partner can explain court options, such as a county court money claim, and enforcement after judgment, with costs set out before anything is filed.
An agency cannot force payment, take goods or act as a court officer. What it offers is lawful, professional pressure and negotiation, close to the debtor.
How do you start recovery from abroad?
- Gather the invoice, contract or order, proof of delivery and your correspondence.
- Check the debtor on Companies House and The Gazette.
- Send a letter before action giving 14 days.
- If the debt remains unpaid and undisputed, upload the file to instruct a UK partner agency.
Our international debt collection page explains how cross-border files are handled.
What evidence travels best?
When you are not on site, documents do the work. A signed order or accepted quote, a delivery record or courier tracking, the invoice itself and any email in which the customer acknowledged the work are the strongest. If your documents are not in English, consider having the key ones translated, because a UK agency or court will need to read them. Keep everything in one file, in date order, so a partner can review it quickly.
Frequently asked questions
Can I use Money Claim Online from outside the UK?
The court rules generally require a UK address for service, so overseas creditors often act through a UK solicitor or representative.
Do I need a UK lawyer to send a demand letter?
No. You can send a letter before action yourself. Advice is useful if the contract is complex or the debt is disputed.
Is the process different if the debtor is a sole trader?
Yes. Individuals are covered by a different pre-action protocol. We only accept limited company, LLP and PLC debtors.
Will a UK judgment be enforced against assets outside the UK?
Not automatically. Enforcement abroad depends on the rules of the other country.
Want a UK partner to take the file?
If the debtor is a UK limited company, LLP or PLC and the invoice is undisputed, upload it using the form below. We introduce it to an independent partner agency in the UK. The fixed fee is 15% of what is recovered, charged only when you are paid. Recovery is not guaranteed.