Chasing late payments: reminders, interest and your rights

Prevent late payment before the job starts

Agree payment terms in writing before work begins — 7, 14 or 30 days — and put them on every quote and invoice. For larger jobs take a deposit and stage payments so you're never owed more than you can afford to lose. For new customers, a quick credit check or a look at their payment reputation costs little.

The chasing sequence

Consistency beats aggression. Run the same sequence every time:

• Day the invoice falls due — polite reminder with the invoice attached and a payment link or bank details.
• 7 days late — firmer email or call: confirm there's no dispute, ask for a payment date, and get it in writing.
• 14 days late — formal letter before action: state the balance, that statutory interest is accruing, and that you'll start a claim if unpaid in 7–14 days.
• After that — small claims (Money Claim Online) for amounts up to £10,000 in England and Wales.

Statutory interest and compensation

For business-to-business work, the Late Payment of Commercial Debts (Interest) Act 1998 lets you charge 8% plus the Bank of England base rate from the day the invoice became overdue — even if your terms don't mention it. You can also claim fixed compensation per invoice: £40 for debts under £1,000, £70 under £10,000, £100 above that.

Mentioning this in your reminder — politely — is often enough to move you to the front of the payment queue.

Keep your paperwork straight

Claims fail on missing paperwork, not on merit. Keep the accepted quote, the invoice, delivery or completion evidence, and every reminder. If a customer goes quiet, a paper trail turns a stressful claim into an administrative one.