Short answer: Check the exact company on Companies House, assemble your proof, send a Practice Direction letter before action giving 14 days, claim Late Payment Act interest and compensation, then instruct a partner or issue a claim. You pursue the company, not its directors, unless a guarantee exists.
Recovering unpaid invoices from a limited company is ordinary B2B credit control with one sharp difference: the debtor is a separate legal person. You chase the company named on the invoice — not the director’s personal bank account — unless a personal guarantee or other liability sits alongside the company debt.
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. Recovery is not guaranteed.
Is the company the right debtor?
Before you escalate, match the invoice to the legal entity:
- full company name and company number as on Companies House;
- registered office address for formal notices;
- the trading name on emails or purchase orders, if different from the legal name;
- whether you invoiced an LLP, limited company, or a sole trader using a similar brand.
A wrong legal entity wastes weeks. If the purchase order names “Acme Holdings Ltd” but you billed “Acme Trading”, fix the paperwork before a letter before action. Directors are not automatically liable for the company’s unpaid trade invoices.
What proof stands up to a company dispute?
Limited companies often reply through finance teams or advisers. A thin chase invites a generic “under investigation” stall. Gather:
- signed terms, acceptance email, or purchase order that incorporates your terms;
- the invoice with number, date, amount, VAT and due date;
- delivery note, timesheets, milestone sign-off, or other proof of supply;
- statement of account showing payments and the open balance;
- prior reminders and any written admissions of the debt.
That pack is what unpaid invoices recovery actually rests on. Without it, escalation is negotiation by assertion.
When is the limited-company invoice legally late?
GOV.UK explains that you can claim interest and debt recovery costs if another business is late paying for goods or a service. On a qualifying commercial contract, the Late Payment of Commercial Debts (Interest) Act 1998 can add statutory interest and fixed compensation once payment is late.
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. Confirm the Act applies to your contract and that the payment day has passed. Adding interest and compensation strengthens a proportionate demand; it does not compel payment on its own.
Which pre-action rules apply: company or sole trader?
This is where limited-company recovery diverges from chasing an individual trader.
The Pre-Action Protocol for Debt Claims applies when a business claims a debt from an individual, including a sole trader. It does not apply to company-versus-company debts.
For a limited company or LLP debtor, follow Practice Direction – Pre-Action Conduct and Protocols: set out the claim clearly, enclose or list key documents, and allow a reasonable time to reply — 14 days in a straightforward case. That letter is the commercial letter before action.
Do not send a Debt PAP Information Sheet and 30-day sole-trader pack to a limited company. It confuses the file and signals you have not checked the debtor type. More detail: Debt PAP: sole traders vs limited companies.
What is a proportionate path from reminder to instruction?
- 1. Confirm the legal name, number and that the balance is past due.
- 2. Send a clear final reminder with the statement and core attachments.
- 3. If ignored, send a Practice Direction letter before action and diarise the reply window.
- 4. If still unpaid and not genuinely disputed, instruct specialist business debt collection via a partner.
- 5. You decide whether to issue a county court claim. GOV.UK explains how to claim money owed by a person or business. Issuing is not payment. We do not issue proceedings.
The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.
When should you pause collection against a company?
Pre-legal collection is for undisputed commercial debt. Pause and take advice where there is a genuine issue of substance, for example:
- goods or services disputed in writing at the time with a specific reason;
- a set-off or contra claim documented in the trading history;
- the wrong company invoiced;
- a formal insolvency process already underway that changes how you must claim.
A late, undocumented excuse after months of silence is not a new payment term. Document the dispute, reply in writing, and only instruct on the clean balance you can still prove.
What can partners do, and what can they not do?
A collection partner can chase the company professionally, seek payment plans where appropriate, and report progress. They cannot pretend to be High Court Enforcement Officers, invent FCA authorisation, or guarantee recovery. Court enforcement after judgment is a separate path you choose with proper advice. We remain an introducer: partners collect; marketing language about “we deal with it” still means an assigned partner does the recovery work.
Frequently asked questions
Can I chase the director personally for a limited company’s unpaid invoice?
Usually no. The company is the debtor unless you hold a personal guarantee, a director has given a separate contractual undertaking, or another legal basis for personal liability applies. Check the paperwork before writing to an individual.
Does the Late Payment Act apply to limited-company invoices?
Often yes, where both sides act in the course of a business and the contract is for goods or services in scope. Confirm your contract qualifies. Consumer debts sit outside this site’s B2B path.
How long should I wait after a letter before action?
Practice Direction guidance points to a reasonable time — typically 14 days for a straightforward debt. Diarise it. Silence after that window is a commercial signal to escalate, not a court order for payment.
Does recovering unpaid invoices from a limited company cost nothing?
No. The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.
Can Debt Collection UK sue the company 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 should I stop internal chasing and instruct a partner?
When reminders and a proper LBA have failed, the documents support the balance, and there is no genuine dispute worth trying. Upload the invoice and terms via the secure form rather than sending another polite chase into silence.
The fee is 15% of what is recovered, payable only when you have been paid. When a limited company has ignored a sound invoice, pass the file via unpaid invoices or a letter before action next step — then leave the chase with a partner if internal credit control has stalled.