Late payments put pressure on your cash flow, even when the work's already done. Here's how to handle them calmly and get paid without burning bridges.
Start with a reminder
Most late payments come down to an oversight, not a refusal to pay. That means that people just forget rather than that they have no intention of paying for the goods or service that you've given them. A friendly reminder a few days after the due date, referencing the invoice number and amount, sorts out most cases quickly. Keep the tone professional and very straightforward rather than accusatory, since it's often just been missed.
If the reminder doesn't work
If payment still doesn't arrive, follow up with a clearer, firmer message. It helps to:
• Set a new payment deadline and state it clearly
• Ask if there's a reason for the delay, in case there's a genuine issue
• Offer a payment plan if cash flow is the problem on their end
• Keep a written record of every follow up you send
When to take it further
If a customer still won't pay, you're entitled to charge statutory interest and a fixed late payment fee under UK law, provided your contract didn't already rule this out. For larger amounts, a formal letter before action or the small claims court can help if the relationship has already broken down.
Frequently asked questions
Can I charge interest on late payments?
Yes. Under UK law, you can charge statutory interest plus a fixed fee on business-to-business invoices, as long as your contract doesn't say otherwise.
What if a customer refuses to pay at all?
Send a formal letter before action explaining what's owed and your next steps. If that doesn't work, the small claims court is designed for straightforward disputes like this and it means you don't need a solicitor.
How do I avoid late payments in the first place?
Clear payment terms agreed upfront, invoices sent promptly, and a deposit for larger jobs all reduce the chances of late payment before it becomes an issue.
