An overdue invoice can quickly become a drain on cash flow and management time. The right response is usually neither endless informal chasing nor immediate court action. It is a documented sequence that establishes what is owed, gives the debtor a reasonable opportunity to respond and preserves your options.
1. Check the debt and your evidence
Confirm the customer’s correct legal name, invoice number, amount, due date and the basis on which the goods or services were supplied. Assemble the contract or accepted quotation, purchase order, invoice, delivery evidence, timesheets and relevant correspondence.
Check whether the customer has raised a genuine complaint, alleged defective work or challenged the amount. A disputed debt may still be recoverable, but it must be understood rather than treated as a simple late payment.
2. Confirm that the invoice reached the right person
Contact accounts payable and verify that the invoice was received, approved and entered into the payment system. Ask for a specific reason for non-payment and a realistic payment date. Record who you spoke to and what was agreed.
3. Send a clear written reminder
Identify the invoice, amount and original due date; attach a copy; explain how payment can be made; and ask the debtor to raise any dispute promptly. Keep the tone professional and set a clear response deadline.
4. Escalate commercially
If routine reminders achieve nothing, contact someone with authority to resolve the issue, such as a finance manager, director or business owner. Keep contact proportionate and avoid language that misrepresents your powers or unfairly damages the debtor’s reputation.
5. Consider interest and recovery costs
For qualifying business-to-business transactions, legislation may permit statutory interest and fixed compensation. Your contract may instead contain its own late-payment provisions. Calculate any addition carefully and state its basis clearly. See our guide to late-payment interest and compensation.
6. Address any dispute
Ask the debtor to explain the dispute in writing and provide supporting evidence. Compare it with the contract and your records. Separate any genuinely disputed element from sums that are accepted or clearly due.
7. Use professional commercial debt recovery
If direct efforts have stalled, a specialist can assess the evidence, make structured contact, negotiate within agreed authority and give you a clear record of activity. At South Coast Collections, scope and fees are agreed in writing before recovery begins. Our service is for commercial debts, not consumer accounts.
8. Decide whether legal action is proportionate
Consider the amount, evidence, limitation position, debtor’s solvency, likely legal costs and the prospects of enforcing any judgment. A judgment does not itself guarantee payment. A properly drafted letter before action may be required before proceedings.
Useful official guidance
- GOV.UK: late commercial payments, interest and debt recovery
- Civil Procedure Rules: Pre-Action Conduct
This article provides general information for UK businesses and is not legal advice. The appropriate course depends on the contract, parties, facts and value of each matter.