Short answer: check your own paperwork first, then send a polite reminder, then escalate to someone with authority to pay. If that fails, send a formal letter before action giving 14 days to pay or explain any dispute, and add your Late Payment Act interest and compensation. If the company still ignores you, instruct a partner agency or consider a county court claim.
Silence is one of the most frustrating parts of running a business. The work is done, the invoice has gone, and the customer neither pays nor tells you why. The good news is that there is a clear, calm sequence for dealing with it. Following it protects your cash flow, keeps the relationship where that is still possible, and puts you in the right position if you need a collection agency or a court later.
This guide is for invoices owed by limited companies, LLPs and PLCs in England and Wales. Debt Collection UK is an introducer: we pass undisputed business invoices to independent partner agencies, who collect. We are not a law firm and we are not authorised by the FCA.
Is your own paperwork in order?
Before you chase harder, make sure the invoice can stand up. A surprising number of “ignored” invoices are stuck for administrative reasons.
- Is the invoice addressed to the right legal entity? Check the exact name and number on Companies House.
- Does it carry any purchase order number the customer requires?
- Does it state the due date, your bank details and what was supplied?
- Was it sent to the address or inbox the customer’s accounts team actually uses?
- Do you have proof that the goods or services were delivered, such as a signed delivery note, timesheet or completion email?
Fixing a missing PO number now saves weeks later. It also makes it much harder for the debtor to claim a dispute at the last minute. Our guide to proof of debt documents has a fuller checklist.
When is the invoice legally late?
If you agreed a payment date, the invoice is late the day after that date. If you did not, GOV.UK explains that payment is late 30 days after the later of the customer receiving the invoice and you delivering the goods or service. Our guide on when a commercial invoice is legally late covers the detail, including the 60-day limit on agreed terms between businesses.
What should the first reminder say?
Keep the first reminder short and friendly. Assume an oversight. Restate the invoice number, amount and due date, attach the invoice again, and ask the customer to confirm when payment will be made. Send it shortly after the due date passes.
Make a note of every contact: date, person, what was said. That log becomes valuable evidence if you need a letter before action or a claim.
Who should you escalate to?
If the reminder brings nothing, stop writing to a general accounts inbox and find the person who can authorise payment: a finance manager, the finance director or, in a smaller company, a director. Their names are often on Companies House. Phone them, then confirm the call in writing.
Ask a direct question: is there any reason this invoice should not be paid? If they raise a genuine dispute, deal with it on the evidence. If they promise payment, ask for a date and confirm it in writing. If they say nothing, you have your answer.
If you still supply this customer, consider whether to pause further work or deliveries until the account is up to date, as long as your contract allows it. Adding to an unpaid balance rarely improves it.
When should you send a letter before action?
Once reminders and calls have failed, send a formal letter before action. For a company debtor, the court expects you to follow the Practice Direction – Pre-Action Conduct and Protocols. The letter should set out the invoices, the total, how any interest and compensation are calculated, and give a reasonable time to pay or to explain any dispute. In a straightforward case, 14 days is the period the Practice Direction treats as reasonable.
State what you intend to do if there is no reply, such as instructing a collection agency or issuing a claim, and only say it if you mean it. Empty threats teach a late payer to wait.
We offer a UK final-demand template for limited-company debtors. Leave your name, email and phone below to unlock it. It is a practical draft, not legal advice and not a solicitor’s letter.
Can you add interest and late payment compensation?
Usually, yes, on a qualifying business-to-business supply. The Late Payment of Commercial Debts (Interest) Act 1998 gives you:
- Statutory interest at 8% above the Bank of England base rate, as simple interest from the day after the payment was due.
- Fixed compensation under section 5A: £40 for a debt under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more, per invoice.
- Reasonable section 5A recovery costs that the fixed sum does not cover.
Your contract may set a different, substantial remedy instead, so read your terms. Put the figures in your letter before action, worked out clearly. Do not inflate them; a false figure undermines everything else.
What if the company still ignores you?
At this point you have three realistic choices.
- Instruct a collection agency. A specialist agency can contact the company on its own letterhead, reach the decision-makers and negotiate payment or a plan. For an undisputed invoice owed by a trading company, this is often the most proportionate next step.
- Issue a county court claim. You can claim a fixed sum through Money Claim Online, paying a court fee based on the amount. See how to make a county court claim.
- Pause and reassess. If the company looks insolvent, check Companies House and the Gazette before spending more. If there is a real dispute, resolve the facts first.
What should you avoid doing?
Do not post about the debtor publicly, contact its customers, or make statements you cannot support. Do not threaten steps you have no intention of taking. Keep your language factual and calm. If the matter does reach court, the judge will read your letters.
Frequently asked questions
How long should I wait before escalating?
There is no fixed rule. Many businesses send a reminder soon after the due date, escalate within a few weeks, and send a letter before action once it is clear the company is not engaging.
Can I charge interest if my terms do not mention it?
On a qualifying commercial supply, yes. The Late Payment Act implies the right into the contract.
Is silence the same as accepting the debt?
Not formally, but a company that ignores a proper letter before action and then defends a claim may face questions from the court about why it did not respond.
Can I use your service if the debtor is a sole trader?
No. We only accept debts owed by limited companies, LLPs and PLCs. The creditor can be a sole trader.
Ready to stop chasing?
If the debtor is a limited company, LLP or PLC and the invoice is undisputed, upload it using the form below. We introduce it to an independent partner agency. The fee is a fixed 15% of what is recovered, charged only when you are paid. Recovery is not guaranteed.