How to chase an unpaid invoice without wrecking the client relationship

Before you chase: check the boring things

A surprising share of "late" invoices were never properly received. Before you send anything firm, check:

• that it went to the person who pays, not only the person who commissioned the work
• that it had their purchase order number, if they use them
• that the due date has actually passed, counted from when they got the invoice
• that your bank details on it are right

Large organisations pay in batches, often weekly or monthly. An invoice that arrives the day after a payment run waits for the next one. A two-minute phone call to accounts payable asking "when is your next payment run, and is my invoice in it?" fixes more late payments than any template.

A chasing timeline that works

The aim is to be predictable. Clients who learn that your reminders arrive on time, every time, start paying before the first one.

You do not have to use these exact gaps. Just decide yours once and stick to them, so you are not deciding whether to chase each invoice based on how awkward you feel that morning.

What to say in each reminder

The first nudge, the day after it is due

No apology, no "just checking in", no "sorry to bother you". You did the work and the date has passed. Saying so plainly is not rude.

The second reminder, a week later

Ask a direct question that needs a direct answer: "Can you confirm the date this will be paid?" A vague reply ("I'll chase it up") is a sign to pick up the phone.

The phone call

Calls work when emails do not, because they are harder to ignore and you learn things. "It's stuck because finance needs a PO" is fixable today. "We're having a difficult month" is something you would rather know now. Always follow a call with a two-line email confirming what was agreed, so there is a record.

The final notice

Keep it short and factual. Give the invoice number, the original amount, the due date, the statutory interest and compensation you are now adding, the new total, and a date seven days out by which you need payment before you take further action. Then do what you said you would do.

Late payment interest and compensation in the UK

If your client is a business, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim two things on a late invoice, unless your contract sets a different arrangement.

Statutory interest at 8% a year above the Bank of England base rate. To work it out, multiply the debt by the combined rate, divide by 365, and multiply by the number of days late. For example, with the base rate at 4%, a £2,000 invoice that is 45 days late carries 2,000 x 0.12 / 365 x 45, which comes to about £29.59. Check the current base rate when you do the calculation.

Fixed compensation for the cost of recovering the debt, claimable once per invoice:

You can also claim reasonable recovery costs above those amounts if you genuinely incur them. To claim, send a new invoice or a statement showing the interest and compensation as separate lines. The figures and conditions are on gov.uk's late commercial payments guide.

Two caveats. The Act covers business-to-business debts only, so if your client is a private individual, such as a wedding couple or a homeowner, it does not apply, and you can only charge interest if your contract says so. Second, adding interest is a lever, not a requirement. Many freelancers mention it in the final notice and then waive it if the invoice is paid within the week. Both of you know it could have been charged, and that is usually enough.

Pausing the work

If you are partway through a project, your contract may let you stop work until overdue invoices are paid. If it does, say so calmly and in writing: "I'll pick the next stage back up as soon as invoice 031 is settled." If it does not, add that clause to your next contract. Our guide to what to put in a freelance contract has the wording.

Do not hold back files or logins you have already been paid for, and think carefully before withholding anything the client needs in order to operate. "I stopped working" is a strong position. "I took their website down" is not.

Letter before claim and the small claims court

If the final notice passes with no payment and no plan, the next step is a letter before claim. This is a formal letter stating:

• what is owed and why
• the invoices and dates involved
• the interest and compensation you are claiming
• that you will start court proceedings if it is not paid or disputed by a set date

If your client is an individual or a sole trader, the Pre-Action Protocol for Debt Claims applies. It requires particular information in the letter and gives them 30 days to respond. For a limited company, 14 days is normally treated as reasonable.

After that, a claim of up to £100,000 can be started online through Money Claim Online. Claims up to £10,000 normally go to the small claims track, which is designed for people without lawyers. There is a court fee that rises with the size of the claim, and you can add it to what you are claiming. Many debts are paid between the letter before claim and the court date, because a county court judgment affects the debtor's credit for six years.

This is a general guide, not legal advice. If a large sum is at stake, a solicitor's letter can be worth the cost on its own.

Make the next one less likely

The best chase is the one you never have to send.

• Take a deposit on new clients and larger jobs, so you are never fully exposed. See how to ask for a deposit.
• Agree payment terms in writing before work starts, including your right to pause.
• Invoice on delivery, not at month end.
• Make paying easy. A card payment link turns "I'll do it tonight from my laptop" into thirty seconds on a phone.
• Automate the reminders, so chasing is never a decision you have to make.

That last point is the one that changes behaviour. In Panorivo, an invoice that passes its due date is flagged and the reminders go out on their own, so a late payer gets the same polite, punctual nudge whether you are on a shoot, on holiday or just not in the mood. The client sees what they owe in their own portal, and can pay by card if you have connected Stripe. It is free, and it will not chase anyone you have not invoiced through it.