How to chase a late payment without the awkwardness

Nobody starts their own business looking forward to chasing money. Most late payers aren't being difficult: the invoice got buried, the person who approves payments is on holiday, or it's simply slipped their mind. A clear, polite reminder sorts out most of them.

What works best is a short ladder of messages, each a little firmer than the last.

1. The friendly nudge (a day or two after the due date)

Keep it light and assume good faith.

Hi Sarah, just a quick note that invoice INV-0007 for £1,860 was due on 27 September. I've attached it again in case it went astray. Thanks very much, Callum

Attach the invoice again. Half the time, that's all it takes.

2. The clear reminder (about a week later)

Still polite, but specific about what you need and by when.

Hi Sarah, I haven't yet received payment for invoice INV-0007 (£1,860, due 27 September). Could you let me know when it will be paid? My bank details are on the invoice. If there's a problem with it, just tell me and I'll sort it out. Thanks, Callum

Asking "is there a problem?" gives them an easy way to raise a query, which is often the real reason for the delay.

3. The final notice (two to three weeks overdue)

Firm and factual. Give a date.

Hi Sarah, invoice INV-0007 for £1,860 is now three weeks overdue. Please pay it by Friday 18 October. If it isn't paid by then, I'll add statutory interest and compensation as allowed under the Late Payment of Commercial Debts Act, and consider next steps. Callum

Only mention steps you're actually prepared to take.

What the law lets you add (business customers only)

If your customer is another business, UK law lets you claim:

• Statutory interest of 8% a year plus the Bank of England base rate, on the amount owed.
• A fixed sum for the cost of recovering the debt: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.

This doesn't apply to private customers, such as a homeowner you did a job for. For them, a polite chase and, if needed, the small claims process are the usual routes.

Small habits that prevent late payment

• Put the due date on the invoice, not just "payment terms: 14 days".
• Make paying easy: bank details on every invoice, and a card payment link if you can.
• Invoice the day the job's done. The longer you wait, the later you're paid.
• Keep a note of when you chased. It keeps you calm and gives you a record if it goes further.

The shortcut

Thistle Invoice has these three messages built in. When an invoice goes overdue, the nudge is one tap away, already filled in with the invoice number, amount and due date, ready to send by WhatsApp, text or email. The app also keeps track of which reminders you've sent.

This is general information, not legal advice.