Late payment chaser letter templates

How to use these templates

Chasing payment works best as a calm, escalating sequence — each letter a notch firmer than the last, sent on a fixed schedule so nothing slips. Copy the wording below, replace everything in [square brackets], and send on the cadence set out in your credit control policy. Keep every chase polite and professional even as it firms up; the goal is to get paid and keep the customer, not to vent. Always attach a copy of the invoice and log each contact against the account.

These are practical templates for UK limited companies, not legal advice. If a debt becomes genuinely contentious or heads to court, take proper advice before sending a letter before action.

Letter 1 — polite reminder (day 1 overdue)

Friendly, assumes an oversight. Most invoices are settled at this stage.

Dear [Name],

I hope you're well. I'm writing about invoice [number] for [£amount], dated [date], which was due for payment on [due date] and now appears to be outstanding.

I appreciate this may simply be an oversight. I've attached a copy of the invoice for your convenience. Could you let me know when we can expect payment, or get in touch if there's any query holding it up?

Payment can be made by bank transfer to [bank details]. Thank you — we value your business.

Kind regards,
[Your name], [Company]

Letter 2 — firm follow-up (day 7–14)

Warmer tone gone, expectation clear. Pair this with a phone call.

Dear [Name],

Further to my reminder of [date], invoice [number] for [£amount] remains unpaid. It is now [X] days overdue.

Please arrange payment in full within 7 days, by [date]. If there is a problem with the invoice or a reason it cannot be settled, contact me straight away so we can resolve it.

I should make you aware that, under the Late Payment of Commercial Debts (Interest) Act 1998, we are entitled to charge interest and a fixed recovery sum on overdue commercial invoices, which we reserve the right to apply if payment is not received.

Payment details are below. I'd much rather settle this between us than take it further.

Yours sincerely,
[Your name], [Company]

Letter 3 — final demand before action (day 21+)

Formal, with a hard deadline and a stated consequence. Send by email and post.

Dear [Name],

FINAL DEMAND FOR PAYMENT — invoice [number], [£amount]

Despite our reminders of [dates], this invoice remains unpaid and is now [X] days overdue. The account has been placed on hold and no further orders will be processed until the balance is cleared.

Unless payment in full is received by [date — give 7 days], we will, without further notice: (1) apply statutory interest at 8% above the Bank of England base rate plus the fixed recovery charge; and (2) refer the debt to [our solicitors / a debt recovery agency] and/or issue a claim through the courts to recover the sum due, interest and costs.

To avoid this, please pay [£amount] in full to [bank details] by the date above, or call me today to agree a resolution.

Yours sincerely,
[Your name], [Company]

Letter 4 — statutory interest & recovery cost demand

Use when you apply your statutory rights to an unpaid commercial debt. The fixed recovery sum is £40 for debts under £1,000, £70 for £1,000–£9,999.99, and £100 for £10,000 or more.

Dear [Name],

As notified, invoice [number] for [£amount] remains overdue. In accordance with the Late Payment of Commercial Debts (Interest) Act 1998, we are now charging:

• Statutory interest at 8% above the Bank of England base rate, currently a total of [X]%, accruing daily from the original due date — [£interest] to date;
• Fixed recovery sum of [£40 / £70 / £100].

The total now due is [£amount + interest + recovery sum], with interest continuing to accrue at [£X] per day until paid in full.

Please settle this total by [date] to [bank details]. We remain willing to discuss a resolution, but interest will continue to accrue until the debt is cleared.

Yours sincerely,
[Your name], [Company]

If payment still doesn't follow, the next step is a formal letter before action and a claim through the small claims track (debts up to £10,000) — take advice first. See your credit control policy for the full escalation path.