Chase late payments without losing clients UK (2026): reminders, interest and tone

Chase late payments without losing clients UK (2026): reminders, interest and tone

By InvoiceAdept Team2 September 2026Updated 2 September 202615 min read

Last reviewed: 2 September 2026
Author: InvoiceAdept Editorial
Sources checked today: GOV.UK late commercial payments, GOV.UK interest, GOV.UK debt recovery costs, Bank of England Bank Rate, BoE Bank Rate history, OSBC interest calculator guidance, GOV.UK make a court claim for money.

This is a practical UK guide for tradespeople and small suppliers on how to chase overdue invoices without wrecking the client relationship. It is not legal advice. Rules change; confirm on GOV.UK before you claim interest, send a Letter Before Action, or issue court proceedings.

Sister pages (keep these aligned — do not contradict them): Late payment rights UK tradespeople (2026) for the rights overview, and How to calculate late payment interest UK (2026) plus the live late payment calculator for the arithmetic.

Quick answer: chase with process, not panic

Late invoices are a cash-flow problem, not a personality test. The trades who get paid without burning bridges treat chasing as a repeatable process: clear terms up front, polite nudges on a fixed cadence, the right channel (email for the audit trail, WhatsApp or phone for speed), and escalation only when the facts justify it.

Checked on 2 September 2026: Bank of England Bank Rate is 3.75% (held 30 July 2026; next MPC decision due 17 September 2026). For eligible business-to-business debts under the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest is Bank Rate + 8% — currently 11.75% simple interest — plus fixed compensation of £40 / £70 / £100 per late invoice. That statutory route does not automatically apply to consumers / homeowners. See the sister rights page for the six-month reference-date rule.

InvoiceAdept helps you raise invoices, send Pro reminders, and keep digital records. It does not file Money Claim Online, County Court claims, VAT returns, Self Assessment, Making Tax Digital updates, or CIS300 returns.

Mindset before you send the first reminder

Most overdue commercial invoices are not “they’re stealing from you.” They are purchase-ledger queues, missing PO numbers, a finance contact on holiday, or a main contractor waiting on their own client. Start with the assumption of friction, not malice — then escalate if the silence continues.

• Separate the person from the process. You are following payment terms you both agreed (or the statutory default). You are not picking a fight.

• Facts beat feelings. Invoice number, amount, due date, days late, and how to pay. Leave sarcasm out of writing that might end up in court.

• One channel for the record, one for speed. Email (or logged letter) builds evidence. A call or WhatsApp often unlocks the BACs the same afternoon.

• Never invent stats. This rewrite removes the previous unsourced “62% of small businesses…” claim. Stick to GOV.UK, Bank of England, and OSBC.

If there is a genuine dispute (scope, snagging, variation not agreed), OSBC guidance is that you cannot charge statutory interest and compensation on an invoice paid late because of a dispute. Sort the dispute first; chase only the undisputed balance.

Know which rights apply before you mention interest

Tone fails when you threaten the wrong regime. Align with the sister guides:

While Bank Rate is 3.75%, the statutory annual rate for eligible B2B debts is 11.75%. You do not always use “today’s” Bank Rate: OSBC’s six-month reference rule uses the rate in force on 31 December (for debts overdue 1 Jan–30 Jun) or 30 June (for debts overdue 1 Jul–31 Dec). For debts becoming overdue in 2026, both halves currently point at 3.75% → 11.75%. Full worked examples: How to calculate late payment interest UK.

Compensation is a fixed £ sum. Interest is a separate %. Do not mix them in one column the way older blogs did. Source: GOV.UK debt recovery costs.

A relationship-safe chasing cadence

Having a calendar removes the awkward “do I chase today?” spiral. Adapt for relationship and job size: a trusted commercial client one week late after years of on-time payment deserves a phone call before formal language. A new main contractor who ghosts a £12,000 completion invoice does not.

This cadence matches the spirit of the sister rights page. Compress it for small undisputed balances; stretch the soft steps for a long-standing client with a temporary cash squeeze — but do not skip documentation.

Many UK tradespeople also find it helpful to review How to chase late invoice payments UK at this stage.

WhatsApp vs email vs phone: which channel when

Channel choice is where relationships are won or lost. Use each tool for what it is good at.

Practical channel rules for UK trades

1. Send the first overdue reminder by email with the invoice attached and bank details / card link repeated.

2. If you already job-chat on WhatsApp, send a short parallel nudge: “I’ve emailed invoice #1042 (£1,850, due 15 Aug) — flagging in case it landed in spam.”

3. Do not open with statutory-interest threats on WhatsApp at 9pm. Save rate language for email once they are clearly overdue.

4. After any phone promise, send a confirmation email or WhatsApp the same day. Verbal “I’ll sort it Friday” without a written echo is how weeks disappear.

5. Keep WhatsApp professional: no ALL CAPS, no emoji storms, no public group shaming.

Template reminder language (copy and adapt)

These are plain-English templates, not solicitor letters. Swap names, amounts, and dates. For consumer clients, omit the statutory-interest paragraphs.

1) Due-day / day-1 friendly nudge

Hi Sarah — just a quick note that invoice #1042 for £1,850 was due on 15 August. If you’ve already arranged payment, please ignore this. Otherwise I’d appreciate payment at your earliest convenience. Bank details (and the card link) are on the attached PDF. Thanks, Dave.

2) Day-7 firmer reminder (B2B — mention rights lightly)

Hi Sarah — following up on invoice #1042 for £1,850, now 7 days overdue (due 15 August). Could you arrange payment this week? I’ve attached the invoice again. For commercial debts, late payment can attract statutory interest at 8% above Bank of England Bank Rate plus fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998 — I’d rather resolve this without extra charges. Let me know if you need a remittance advice or PO reference.

3) Day-14 call follow-up (confirm in writing)

Hi Sarah — thanks for the call. As discussed, you’ll clear invoice #1042 (£1,850) by Friday 5 September. I’ll look out for the BACs / card payment. If anything changes, please reply to this email so we both have it in writing. Cheers, Dave.

4) Day-21 formal notice (B2B — name the daily figure)

Work the daily rate with the late payment calculator and the sister interest guide. Example while statutory rate is 11.75% on a £1,850 invoice: daily interest ≈ £1,850 × 0.1175 ÷ 365 ≈ £0.60.

Dear Sarah, Invoice #1042 dated 1 August 2026 for £1,850 (incl. VAT) was due on 15 August 2026 and remains unpaid (21 days late as at 5 September 2026). Under the Late Payment of Commercial Debts (Interest) Act 1998 I am entitled to statutory interest at Bank Rate + 8% (currently 11.75% using the applicable reference Bank Rate of 3.75%) — about £0.60 per day on this invoice — plus fixed compensation of £70 for a debt between £1,000 and £9,999.99. Please arrange payment of the principal within 7 days. If the principal remains unpaid I will issue a separate interest-and-compensation invoice and may take further recovery steps. Payment details are on the attached invoice. Yours sincerely, Dave / Trading name Ltd

5) Soft payment-plan offer (when cash flow is the issue, not avoidance)

Hi Sarah — I understand cash is tight this month. I’m happy to accept £925 this week and £925 on the 20th for invoice #1042, provided both dates are confirmed in writing. If that works, reply “agreed” and I’ll pause further escalation while those dates hold.

Offering a plan is relationship capital. Document it. If they miss the first instalment, return to the formal track — do not silently rewrite your terms forever.

When (and how) to mention statutory interest without sounding hostile

Naming interest early does not mean collecting every penny of it. Many commercial buyers pay as soon as they see a specific daily £ figure. That is professional, not hostile — provided you:

• Confirm the debt is B2B and not in genuine dispute.

• State the annual % you are using (e.g. 11.75%) and the daily £.

• Mention the compensation band only when the reminder is already firm (day 7+).

• Offer an easy way to pay (sort code / account, or a Stripe card link on Pro).

• Keep the door open: “I’d prefer to resolve this without additional charges.”

Do not invent “admin fees” that are neither the fixed statutory sum nor evidenced reasonable recovery costs. GOV.UK allows reasonable costs above the fixed sum where you can evidence them — that is not a blank cheque.

If your contract already sets a different interest rate, GOV.UK’s interest page says you generally cannot also claim statutory interest on top. Enforce the contractual rate instead (if it is a substantial remedy). Public authorities cannot push you below the statutory floor. Details: sister rights page.

Stop-work decisions: protect cash without drama

Chasing language alone will not fix a job where you keep pouring labour into an unpaid balance. Decide in advance when you pause.

Put stop-work and stage-payment rules on the quote, not only in your head. Mirror them on the invoice. See How to invoice a client (UK tradesperson) and the deposit invoice template UK.

If you are sorting this alongside other compliance work, read How to calculate late payment interest UK.

Letter Before Action: outline only (not a solicitor template)

A Letter Before Action (LBA) is a pre-action warning that you intend to start court proceedings if the debt is not paid by a clear deadline (commonly 14 days). It is not a court claim. This section is an outline of what people typically include — not legal advice and not a substitute for the Pre-Action Protocol guidance or a solicitor’s letter on large or disputed debts.

What an LBA outline usually covers

1. Your full business name and address; their full legal name and address.

2. Clear statement of the debt: invoice number(s), dates, amounts, what the work was.

3. How much is outstanding today (principal; and if claimed, interest and compensation to date with the rate used).

4. A deadline to pay (often 14 days) and how to pay.

5. A clear statement that if they do not pay (or make a proposal you accept) you intend to issue court proceedings without further notice.

6. An invitation to discuss if they dispute any part — and a request that any dispute is set out in writing with reasons.

7. A note that court fees and further costs may be added to the claim where the rules allow.

Tone for the LBA

Formal, factual, short. No insults. No WhatsApp-only delivery. Send by email with read/timestamp where possible and keep a PDF copy. For higher-value debts, consider recorded post as well.

OUTLINE ONLY — adapt with advice if needed: We refer to unpaid invoice #1042 dated 1 August 2026 for £1,850, due 15 August 2026. Despite reminders dated [dates], the sum remains unpaid. Please pay £1,850 [plus any stated interest/compensation to date] within 14 days of the date of this letter. If payment is not received we intend to commence court proceedings to recover the debt, interest, compensation and recoverable costs. If you dispute the debt, please explain why in writing within 14 days.

After the LBA window with no payment and no credible dispute, many trades use Money Claim Online for suitable debts. Court fees are set by HMCTS and can often be added to the claim. InvoiceAdept does not file MCOL or act as your solicitor.

Flexible options that keep goodwill

When the buyer is communicative but cash-constrained, flexibility can recover more than a threat:

• Written instalment plan with dates and amounts; pause escalation only while dates hold.

• Partial payment now against a dated remainder — receipt each slice.

• Card / Stripe link so they can pay without another trip to the bank (Pro feature on InvoiceAdept; no InvoiceAdept platform fee on Stripe).

• Early-payment discount on future jobs (e.g. a small % for payment within 7 days) — agree it in writing; do not silently cut today’s overdue invoice unless you choose to.

Do not offer endless soft extensions to a buyer who never replies. Silence after a formal notice is a signal to escalate, not to wait politely for another month.

Prevent the chase: habits that cut overdue invoices

Interest and LBAs are backstops. Cash on the due date is the goal.

If you are approaching the VAT registration threshold, confirm the live figure on GOV.UK — as of this review the standard threshold is £90,000 (not older £85,000 figures still floating around blogs). InvoiceAdept does not file your VAT return.

What InvoiceAdept does — and does not — do

Pricing (excl. VAT, from the live pricing page): Free — 5 invoices/month; Pro — £7.99/month; Pro+ — £12.99/month with CIS on the invoice. Company: Tech Me Today Ltd, Companies House 15917255, ICO ZB944663.

Pro reminders are honest tooling: they nudge the client on a schedule you control. They do not calculate court interest for you automatically as a filed claim, and they do not send Letters Before Action or MCOL filings.

Related: see Handling deposit payments tradesperson UK for practical next steps.

Worked snapshot (aligned with sister calculator guide)

Illustrative only — recalculate with your figures and the correct reference rate.

Commercial invoice £2,400 (incl. VAT), 14-day terms, 28 days late, overdue in 2026 → statutory 11.75%:

Full tables and a larger £12,500 example: How to calculate late payment interest UK (2026). Cross-check with the late payment calculator. Round to the nearest penny when you raise the interest invoice.

Protecting the relationship with repeat late payers

One late payment does not require cutting a client off. Habitual late payment does require different terms:

• Shorter payment terms (e.g. 14 days or payment on completion).

• Larger deposits (e.g. 40–50% before materials).

• Stage invoices so exposure never exceeds one milestone.

• Card link on every invoice.

• Written confirmation that future work pauses if a stage is unpaid.

Present this as process, not punishment: “To keep jobs moving smoothly we’re standardising deposits and stage payments.” Clients who value you will adapt. Clients who only valued your patience will show themselves.

Worth pairing this with our guide to Calculate retention payments construction UK.

Frequently asked questions

How do I chase a late payment without being rude?

Lead with facts: invoice number, amount, due date, and how to pay. Assume oversight on the first nudge. Escalate gradually (email → call → formal notice). Keep sarcasm and ALL CAPS out of writing that may become evidence.

Can I charge Bank Rate + 8% to a homeowner?

Not under the commercial Late Payment Act route. That Act is for B2B. For consumers you need a fair contractual term, and consumer unfair-terms rules apply. Prefer deposits, clear scope, and easy payment. See the sister rights page.

What is the statutory interest rate right now?

While Bank Rate is 3.75% (held 30 July 2026; next MPC 17 September 2026), statutory interest is 11.75% (Bank Rate + 8%) for eligible commercial debts. Apply the six-month reference-date rule — confirm on the BoE Bank Rate page and OSBC guidance.

Should I use WhatsApp or email?

Email for the audit trail and any formal language. WhatsApp for a short parallel nudge if you already message that way. Confirm phone promises in writing. Do not rely on WhatsApp alone for a Letter Before Action.

When should I stop work?

When a stage payment or deposit that your written terms require has not cleared, pause and confirm in writing. Do not keep financing the job. Check any trade-specific legal duties before withholding certificates or access.

When should I send a Letter Before Action?

After reminders and (for B2B) an interest notice or interest invoice have been ignored, and the debt is clear and preferably undisputed. An LBA is a warning, not a claim. Take advice on large, disputed, or complex debts.

Does InvoiceAdept file court claims or HMRC returns for me?

No. Pro can send reminders and card links. The calculator helps with arithmetic. You decide whether to issue an interest invoice or use Money Claim Online. InvoiceAdept does not file MCOL, VAT returns, Self Assessment, MTD updates, or CIS300 returns.

Is statutory interest compound?

No. It is simple interest on the overdue invoice amount (including VAT per OSBC). It does not compound onto previously accrued interest.

Can chasing damage the relationship?

Aggressive first contact can. A calm, factual process usually does not — commercial clients expect to be chased. A client who only stays if you never ask for money was never a healthy account.

What if we never agreed payment terms?

For eligible B2B debts, GOV.UK: if you do not agree a payment date, payment is late 30 days after the customer gets the invoice or you deliver (whichever is later). Still put terms on future quotes.

About this guide

Written for UK trades and small suppliers by InvoiceAdept Editorial (Tech Me Today Ltd 15917255, ICO ZB944663). Last reviewed 2 September 2026 against GOV.UK late-payment pages, Bank of England Bank Rate (3.75%, held 30 July 2026, next MPC 17 September 2026), OSBC interest-calculator guidance, and alignment with sister pages Late payment rights UK tradespeople and How to calculate late payment interest UK.

This rewrite removes the previous unsourced FSB-style “62%” late-pay claim, refreshes Bank Rate to 3.75% → statutory 11.75%, clarifies that statutory interest/compensation are B2B only, and centres the article on tone, cadence, channels, templates, stop-work, and LBA outline rather than thin rights rehash.

Not legal advice. If the debt is large, disputed, cross-border, or close to limitation, take advice from a solicitor or a qualified debt adviser before you issue a claim.

Useful links

• GOV.UK — Late commercial payments hub

• GOV.UK — Interest on late commercial payments

• GOV.UK — Claim debt recovery costs

• Bank of England — Bank Rate

• OSBC — Interest calculator guidance

• GOV.UK — Make a court claim for money

• InvoiceAdept late payment calculator

• Late payment rights UK tradespeople

• How to calculate late payment interest UK

• How to invoice a client (UK tradesperson)

• Deposit invoice template UK

• InvoiceAdept pricing

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