What to do when an invoice goes unpaid

The work is done. The invoice is out. The due date has come and gone. This guide is the playbook for when prevention has already failed. Most tradespeople either chase too softly for too long, or jump straight to threats. Neither works. There is a sequence that does, and most of it is admin, not confrontation.

Each step below is a stage in that sequence, with sample wording and the moment to move on to the next one.

Day numbers below are counted from the invoice due date. Day +1 means one day after the due date, Day +7 means a week after, and so on.

1. The friendly nudge

Day +1 to +3. The first message goes out a day or two after the due date, not two weeks later.

Early is better for one reason: at day +1 the message is admin. At day +14 it feels like an accusation. The longer you leave it, the more awkward it gets, both for you and for the customer.

Sample wording:

Hi [name], just a quick note that invoice [number] was due on [date]. Probably already in hand, but let me know if there is any issue.

That is it. Short, friendly, leaves the customer an easy way to reply. Most invoices that miss their date are not refusals to pay, they are admin lapses on the customer's side. A nudge solves it.

Common mistake: waiting two weeks because day +1 feels too soon. By the time you do chase, it has become a bigger conversation than it needed to be.

2. The follow-up

Day +7 to +14. If the nudge has been ignored, the follow-up asks for something specific.

The shift here is small but important: you are no longer checking in, you are asking for a payment date. Open-ended messages let the customer reply with nothing in particular. A specific question needs a specific answer.

Sample wording:

Hi [name], following up on invoice [number], which is now a week overdue. Could you confirm the date payment will be made?

Reference the agreed terms if the customer has gone quiet. It reminds them, without saying it directly, that this was set out at the start.

Common mistake: "let me know when you can pay" instead of "could you confirm the date payment will be made". The first gives the customer nothing to commit to. The second gives them something to either answer or visibly avoid.

3. The formal demand

Day +14 to +30. The tone changes here. Still professional, but the message now references the payment terms, signals what comes next, and sets a hard date.

For business customers, this is the moment to mention statutory interest. For homeowners, mention contractual interest only if it was written into the quote.

Sample wording:

Hi [name], invoice [number] is now [X] weeks overdue. Under the payment terms agreed on [date], the invoice is now accruing late payment interest. If payment is not received by [date], I will begin formal recovery, starting with a Letter Before Action.

A clear deadline, a clear consequence. Nothing more.

Common mistake: threatening something you do not intend to follow through on. From this stage onwards, every message you send may end up in front of a court. Write it so you would be comfortable reading it back there.

4. Letter Before Action

If the formal demand passes without payment, the next step is a Letter Before Action. This is the last formal step before court. See the full guide to sending a letter before action for what it must contain and the rules that differ for individuals and limited companies. Where the customer is an individual or a sole trader, the Pre-Action Protocol for Debt Claims requires you to give them at least 30 days to respond, with specific information included in the letter. Where the customer is a limited company, the protocol does not strictly apply, but courts still expect reasonable pre-action conduct, so the same letter does the job.

The letter has to set out who you are, what the debt is for, how much is owed, how the figure was calculated (including any interest), and what will happen if they do not respond within 30 days.

A well-written Letter Before Action gets a lot of debts paid on its own. By this stage the customer understands two things: you know what you are doing, and the next step is real.

A short version:

Dear [name], this is a Letter Before Action regarding invoice [number] dated [date], for the sum of £[amount] plus £[interest] in late payment interest. The invoice remains unpaid [X] weeks after its due date and after [X] reminders. If payment in full is not received within 30 days of the date of this letter, I will issue a money claim through the County Court without further notice. You may incur additional costs and a County Court Judgment, which would appear on your credit file for six years.

Send it by recorded delivery. Keep the proof of postage.

5. Money claim through the County Court

If the 30 days pass without payment or a serious response, the next step is a money claim through gov.uk. It is done online, you pay a court fee which scales with the size of the claim, and the fee is normally added to what the customer owes if you win.

If the customer does not respond, or responds and loses, the court issues a County Court Judgment. They have a month to pay before the judgment hits their credit file for six years. Every mortgage application, every car loan, every credit check sees it. This is why most claims that reach this stage get paid before judgment is entered.

For higher-value or disputed debts, the Small Business Commissioner has free guidance. For anything large or complex, talk to a solicitor before you file.

6. When to stop

Not every debt is worth chasing. If the customer has gone bankrupt, if the amount is small, or if the time cost has overtaken the money cost, the right answer is to write it off and move on.

A clean write-off is a better outcome than six months of low-grade stress for a debt that was never coming back. Keep the records (invoice, chase history, Letter Before Action if sent) and claim the bad debt relief through HMRC if you are VAT registered and the invoice has been overdue for more than six months.

Common mistake: chasing for six months a debt that should have been written off in month one. The cash cost of writing off is small. The time cost of not writing off compounds quietly across every other job you are trying to deliver.

Business or homeowner: what changes

The chase sequence is the same for both. The legal levers are not.

For business customers, you can charge statutory interest and a fixed compensation fee on any late invoice, whether or not it is in your terms. The right comes from the Late Payment of Commercial Debts (Interest) Act 1998.

For homeowners, you can only charge interest if it was written into the payment terms before the work started. If it was not, you can still ask the court to award interest at the end of a successful claim, but you cannot add it to your invoices.

If you are not sure your payment terms cover this, see our guide to writing payment terms that actually get you paid.

Before you escalate, check

• The work was agreed in writing before it started
• The completion was confirmed in writing before the invoice went out
• The invoice clearly states the due date and the agreed terms
• You have sent the friendly nudge, the follow-up, and the formal demand
• You have kept copies of every message and the proof of postage on any letter

If any of these are missing, fix them on the next job. They are what make the escalation actually work when you need it.

Trame sends the chase sequence automatically and keeps every message timestamped against the invoice, which is exactly what you need if it ever has to be shown to a court.

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Frequently asked questions

Getting paid: full guide series

• Why UK tradespeople get paid late, and how to stop it
• How to write payment terms that actually get you paid
• What to do when an invoice goes unpaid (you are here)
• How to chase a friend or referral for payment
• How to send a letter before action for an unpaid invoice