Chasing late payments without losing the client

Nobody goes into a trade to become a debt collector. You finish the job, you send the invoice, and then you wait. And wait. Chasing money you have already earned feels awkward. Most tradespeople put it off.

Here is the thing. A calm, steady follow up works. It does not have to be a fight. This is how to get paid and keep the client.

Start before the work begins

The best chase is the one you never need. Agree your payment terms in writing before you pick up a tool.

Say the number of days in plain words on the quote. "Payment due 14 days after the invoice date" leaves no room for doubt.

If you agree nothing in writing, the law still gives you a backstop. Between two businesses, the invoice is legally due 30 days after you send it, unless your contract says otherwise. But do not rely on the backstop. Write your terms down.

Also agree who approves the invoice. If you deal with one person on site and another person signs the cheques, get the cheque signers name before you start.

Invoice fast and invoice clean

Send the invoice the same day you finish. Every day you wait is a day the client forgets what you did for them.

Make the invoice easy to pay. Show your business name, the invoice number, the date, what the work was, the amount, and the exact date payment is due. Add your bank details or payment link so paying is one easy step.

Many slow payments are not refusals. They are confusion. A client who cannot see what the invoice is for or where to pay it will put it aside.

The friendly chase, step by step

Silence is the enemy. Most overdue invoices get paid quickly once someone asks for the money. Here is a simple rhythm to follow.

Day one after the due date: a short reminder. A polite text or email. "Hi, just a reminder that invoice 102 for £1,850 was due yesterday. Can you let me know when it is paid? Thanks." That is it. Many clients simply forgot.

One week overdue: pick up the phone. A call beats another email. Keep it warm. "Hi, just checking the invoice went through alright. Is there anything you need from me to get it paid?" Ask when the payment will land and write down what they say.

Two weeks overdue: a firmer written reminder. Restate the invoice number, the amount, and the due date. Mention that late payment interest now applies under UK law. You are still being professional. You are just being clearer about the consequences.

Three to four weeks overdue: a final letter before action. Write that if payment is not received within a short deadline, say seven days, you will take formal steps to recover it. Recorded delivery so you have proof it arrived.

The key at every step is to stay calm and factual. You are not accusing anyone. You are collecting what you are owed.

Know your legal rights

This part surprises most tradespeople. When your client is another business, UK law is firmly on your side. The Late Payment of Commercial Debts (Interest) Act 1998 gives you three rights automatically. You do not need to have written them into your contract.

Statutory interest. You can charge interest at 8 percent above the Bank of England base rate, from the day after payment was due. The base rate is currently 3.75 percent, so the total rate is 11.75 percent a year. That is serious money on a big invoice.

Fixed compensation. You can also claim a fixed sum for the cost of recovering the debt. It is £40 for invoices under £1,000, £70 for invoices from £1,000 to £9,999, and £100 for invoices of £10,000 or more. It applies per invoice, not per client. So three unpaid invoices means three payments.

Reasonable recovery costs. If your actual costs of chasing the debt go beyond the fixed sum, for example a solicitors letter, you can claim the difference too.

One important note. This law covers business to business work. If your client is a homeowner, it does not apply in the same way. With consumers you can only charge late fees if your terms said so before the sale and the terms are fair under consumer law. That is another reason to get everything in writing first.

If it still will not move

For most firms, court is a last resort. But knowing the option exists makes every earlier step stronger.

In England and Wales, unpaid invoices up to £10,000 go through the small claims track of the County Court. It is designed so you can represent yourself. No lawyer needed. You can start a money claim online.

Judges in these cases like clear records. Keep every quote, invoice, reminder, and note of every phone call. If you can show you chased calmly and in order, you are in a strong position. A court judgment also affects the clients credit record, which is often what finally moves them to pay.

Before you go to court, a solicitors letter or a debt collection agency can settle many cases. But weigh the cost. Agencies often charge a share of what they recover.

Keep the relationship alive

Being firm and being friendly are not opposites. Most late payers are not bad people. They are busy, or their own cash flow is tight, or your invoice is buried under fifty others.

Ask why it is late before you assume the worst. If a good client is genuinely short of cash, a short payment plan can save the relationship and still get you paid. Get any plan in writing.

What you should not do is punish the client by cutting corners on the work or going silent yourself. That never gets the invoice paid faster.

And remember this for next time. Clients who pay late once will pay late again. For the repeat offender, take a deposit before you start, or move them to staged payments where part of the money lands before you begin each phase.

How PlusWise helps

PlusWise keeps your quotes, invoices, and client records in one place. So you always know exactly who owes you what and which invoices are overdue. No digging through emails. No paper pile. When it is time to chase, every detail you need is right there on the screen.

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Sources checked September 2026: HMRC and government guidance on the Late Payment of Commercial Debts (Interest) Act 1998; Bank of England base rate announcement of 17 September 2026; government guidance on money claims and the small claims track in England and Wales.