What to Do About Late-Paying Clients: A UK Business Guide

Almost every freelancer and small business owner deals with a late-paying client eventually. It’s frustrating, but there’s a fairly standard set of steps that tends to work better than either ignoring it or firing off an angry email.

Step 1: Send a polite reminder, in writing

As soon as an invoice passes its due date, send a short, friendly reminder — people do genuinely forget, or an invoice gets lost in a busy inbox. Reference the original invoice number and due date, and attach or re-send the invoice itself so there’s no excuse for further delay.

Step 2: Re-issue with a clear “overdue” note

If the first reminder doesn’t get a response within a few days, send a follow-up invoice or statement clearly marked as overdue, restating the amount, the original due date, and how many days it’s now outstanding. This creates a clear paper trail and signals you’re keeping track.

Step 3: Know your legal position

Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses can charge statutory interest (currently the Bank of England base rate plus 8%) plus a fixed compensation fee on overdue business-to-business invoices, once agreed payment terms have passed. You don’t have to enforce this on every client, but knowing it’s an option — and mentioning it — often speeds things up.

Step 4: Pick up the phone

Emails are easy to ignore; a phone call is much harder to dodge, and it’s often the fastest way to actually find out what’s going on — sometimes there’s a genuine hold-up on their end (an approval process, a change of contact) that a quick conversation resolves in minutes.

Step 5: Consider your options for persistent non-payment

If a client simply won’t pay after repeated attempts, options include mediation, the Money Claim Online service for debts under £10,000, or in more serious cases, a solicitor’s letter before action. These are last resorts, but it helps to know they exist rather than simply writing off the debt.

Prevention is easier than collection

Clear payment terms, a deposit for new or larger clients, and prompt, professional invoicing all reduce how often you end up chasing money in the first place. Our overdue invoice tool makes it quick to re-issue a chaser invoice with an updated due date, so following up doesn’t become its own chore.