Guide

What to do when a client won't pay

Most late invoices are just forgetfulness, and a reminder sorts them. But every now and then a client goes quiet, or flatly refuses, and you are left out of pocket for work you have done. Here is the calm, escalating path to take in the UK - each step firmer than the last, so you rarely need to go all the way.

1. Rule out a genuine problem

Before assuming the worst, make sure there is not a simple reason. Did the invoice reach the right person? Is there a query about the work they have not raised with you? A direct, friendly "is everything ok with invoice [number]?" often unblocks a payment that was stuck on a misunderstanding, not a refusal.

2. Send a clear, escalating set of reminders

Stop hoping and start a sequence. A reminder on the due date, a gentle nudge a few days later, then progressively firmer messages each week. Keep them short, reference the invoice number and amount, and keep a record of each one. Our payment reminder templates and free reminder generator give you the exact wording, and how to chase an unpaid invoice walks through the full cadence.

3. Add statutory interest and compensation

For business-to-business invoices, the Late Payment of Commercial Debts (Interest) Act 1998 lets you charge statutory interest (the Bank of England base rate plus 8%) and a fixed compensation fee. Telling a client that interest is now accruing often focuses minds. Work out the figures with our late payment interest calculator.

4. Send a letter before action

If reminders are ignored, a letter before action (sometimes called a "letter before claim") is the formal final warning. It states what is owed, gives a clear deadline to pay (commonly 7 to 14 days), and makes clear you will consider court action if it is not met. It signals you are serious, and many disputes settle at this point. Keep it factual and professional - no threats beyond stating your intended next step.

5. Consider the small claims court

For most freelance and small-studio debts, the small claims track (part of the County Court in England and Wales, with equivalents in Scotland and Northern Ireland) is the route. You can start a claim online via Money Claim Online for many cases. Court fees apply but are recoverable if you win, and you usually do not need a solicitor for small claims. Your timestamped record of every reminder and the unpaid invoice is exactly the evidence that helps here.

6. Keep records throughout

Whatever stage you reach, a complete paper trail - the invoice, your terms, and every reminder with its date - is what makes the firmer steps credible and, if it comes to it, winnable. This is one quiet reason to chase through a consistent system rather than ad-hoc emails: it keeps the record for you.

This guide is general information for the UK, not legal advice. Rules and processes differ across England and Wales, Scotland, and Northern Ireland - check your situation or speak to a professional before taking formal action.