Guides

Late payment, explained by people who recover it.

What the law gives you, what to send and when, what recovery actually costs, and what to do when a customer's status on the register changes. Written for finance managers and owners, not lawyers.

What is your late invoice owed?Try it
£
Statutory interest at base + 8%£0.00
Fixed compensation, per invoice£0.00
Owed to you£0
Bank of England base rate plus 8 points, on the gross sum, under the Late Payment of Commercial Debts (Interest) Act 1998.How it is worked out →
Start here · Credit control · 5 min

How to chase an unpaid invoice: the sequence that works

Most unpaid invoices are not disputes and not bad debt. They are invoices nobody chased properly. This is the sequence that gets them paid, with the timing and the wording.

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All guides

8 guides
Formal recovery4 min

How long do you have to recover a business debt? Limitation periods explained

  • Six years, or five in Scotland
  • When the clock starts
  • What restarts it, and what does not
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The statutory sums4 min

Late payment interest and compensation: what you can claim on every overdue invoice

  • How the rate is fixed, and from which day
  • The three compensation bands
  • A worked example on a £4,500 invoice
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Formal recovery4 min

Letter before action: what it must contain, and the two versions

  • Company debtor: the Practice Direction
  • Sole trader: the Protocol and its 30 days
  • What must be enclosed
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When the register changes4 min

A customer has gone into liquidation, administration, or been struck off. What now?

  • Reading the notice on the register
  • How to lodge a proof of debt
  • Objecting to a strike-off in time
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Fees3 min

How much does commercial debt recovery cost in the UK?

  • Commission by the age of the debt
  • What no-win-no-fee does and does not cover
  • The questions to ask before instructing anyone
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Credit control4 min

A credit control process for a small business, in one page

  • Terms that belong on every invoice
  • The weekly ledger review
  • Three triggers for handing a debt over
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Legislation3 min

The Commercial Payments Bill: what changes for UK businesses that get paid late

  • Statutory interest becomes mandatory
  • The 60-day cap on payment terms
  • Reporting duties for large businesses
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