How to chase an unpaid invoice: the escalation ladder that gets trades paid
Most unpaid invoices aren’t theft — they’re drift. The customer meant to pay, the invoice slid down an inbox, and nobody asked again. Which is good news: drift responds to process. Here’s the escalation ladder, from friendly nudge to court claim, and the wording that keeps the relationship while getting the money.
The escalation ladder
Chase on a schedule, not on frustration. A rhythm that works:
- Day before due: a friendly heads-up with the payment link — catches the “meant to” payers
- Day 1 overdue: polite reminder, restate amount and payment link, assume good faith
- Day 7: firmer — “this is now a week overdue; please pay today or tell me if something’s wrong”
- Day 14: phone call. Voice moves money that messages don’t; agree a date on the call and confirm it in writing
- Day 21–28: formal — state that late-payment interest is accruing and that you’ll begin recovery action if unpaid by a stated date
- Then: letter before action, and small claims if it comes to it
Interest and compensation: your statutory lever
For business customers, the Late Payment of Commercial Debts legislation gives you statutory interest — 8% above the Bank of England base rate — plus fixed compensation per invoice (£40, £70 or £100 by debt size), without needing it in your contract. Mentioning this in a chase is often what unlocks payment: it signals you know the rules.
For domestic customers it’s contractual: you can charge interest only if your terms said so. Either way, the bigger lever is usually the next rung of the ladder, not the interest itself.
The letter before action
A letter (or email) before action is the formal final demand courts expect to see before a claim. It states the amount owed and for what, any interest and compensation claimed, a deadline (14 days is conventional), and that court proceedings will follow without further notice if unpaid. Send it even when you doubt you’ll sue — a majority of debts settle at this stage, because it shows you’re serious and organised.
Small claims: worth it or not?
For debts up to £10,000 in England and Wales, the small claims track is designed for people without solicitors, and claims are issued online. There’s a court fee scaled to the claim (recoverable if you win) and a hearing is rare — most defendants pay or settle after the claim lands.
The honest calculus: winning a judgment and collecting the money are different things. A judgment against a customer with nothing to take is paper. For solvent customers who are simply stubborn, small claims works and is far cheaper than writing off the invoice.
The better fix: make drift impossible
Every rung of the ladder is cheaper than the one after it — and prevention is cheaper than all of them. Deposits and stage payments shrink the exposure; invoicing the day the job finishes starts the clock sooner; a card link makes paying a ten-second job. TradeHub OS does the chasing automatically — reminders on your schedule, payment link in every message, escalating tone — so awkward conversations happen to your software, not your evenings.
This guide is general information for UK trades and landlords, not legal advice. Always refer to the current regulations and official guidance from the HSE, Gas Safe Register or your competent-person scheme.
