Templates

Chasing letter templates

A chasing letter is a formal written request for payment of an overdue invoice. Where a reminder email is a nudge, a letter on your letterhead signals that the debt is being tracked properly - which is often exactly the prompt a slow payer needs. Below are three templates that escalate in tone: a polite first chase, a firmer second chase, and a final demand before formal action.

Replace [client name], [invoice number], [amount], [due date], [X] and [your name] with your own details. Send each letter as a PDF attached to an email, by post, or both - and keep a copy of everything.

When to send a letter instead of an email

Emails are right for the first couple of reminders - see our payment reminder email templates for those. Switch to a chasing letter when emails are being ignored, when the invoice is a month or more overdue, or when you are dealing with an accounts department that processes formal correspondence faster than inbox chatter. A letter also builds the paper trail you will want if the debt ever goes further.

1. First chasing letter (polite)

Use when: the invoice is one to two weeks overdue and emails have gone quiet.

[Your name / business name] [Your address] [Client name] [Client address] [Date] Dear [client name], Re: Outstanding invoice [invoice number] I am writing regarding invoice [invoice number] for [amount], which was due for payment on [due date] and remains outstanding. I appreciate this may simply have been overlooked. Please could you arrange payment at your earliest convenience, or let me know when I can expect it. I have attached a copy of the invoice for reference. If payment has already been made, please accept my thanks and disregard this letter. Yours sincerely, [your name]

2. Second chasing letter (firm)

Use when: the first letter has had no response and the invoice is around a month overdue.

[Your name / business name] [Your address] [Client name] [Client address] [Date] Dear [client name], Re: Overdue invoice [invoice number] - second reminder Despite my previous reminder, invoice [invoice number] for [amount] remains unpaid. It is now [X] days past its due date of [due date]. Please arrange payment within 7 days of the date of this letter, or contact me to agree a payment date. I would remind you that under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to claim statutory interest and compensation on overdue business invoices. I would prefer to resolve this without doing so. If there is a query or difficulty with this invoice, please contact me so we can resolve it. Yours sincerely, [your name]

3. Final chasing letter (final demand)

Use when: two chases have been ignored. This is the last step before a letter before action.

[Your name / business name] [Your address] [Client name] [Client address] [Date] Dear [client name], Re: Final demand - invoice [invoice number] Despite previous reminders on [dates of earlier chases], invoice [invoice number] for [amount] remains unpaid, [X] days past its due date of [due date]. Please treat this letter as a final demand for payment. Payment of the full amount is required within 7 days of the date of this letter. If payment is not received by that date, I intend to claim statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998, and to send a formal letter before action as the first step towards court proceedings. If you dispute this invoice, please contact me within the same period so the matter can be resolved. Yours sincerely, [your name]

What every chasing letter needs

The invoice number, amount and due date - make it effortless for the right person to find and pay it.
A specific deadline - "at your earliest convenience" in the first letter, a dated 7-day deadline once things escalate.
The next step - later letters should say plainly what happens if the deadline passes, then follow through.
A way back - always invite a reply in case there is a genuine query. Most late payments are oversights, not refusals.
A copy for your records - date every letter and keep it. A tidy chase history is exactly what a court wants to see, and often what makes court unnecessary.

If the invoice is business-to-business, work out what interest and compensation you can add with our late payment interest calculator. For the full escalation path - and what to do if letters do not work - see how to chase an unpaid invoice and what to do when a client won't pay.

Never reach the letter stage

Invoices rarely need a formal chasing letter when the reminders start on the due date and never miss a beat. Badger sends the whole sequence for you, polite to firm, and stops the moment you are paid. Your first chase is free.

Start chasing free

These are general templates for guidance only and not legal advice. Statutory interest and compensation apply to business-to-business invoices; different rules apply to consumers. If you are close to court action, check the Pre-Action Protocol for Debt Claims on gov.uk or take advice.