5 Fast Fixit Solutions for Late Payment of Invoices

Late invoices can put unnecessary pressure on cash flow. The fastest response is usually a consistent process: speak to the customer’s accounts team, confirm the invoice is correctly recorded, agree a payment date, document your legal position and escalate persistent non-payment before the debt becomes harder to recover.

1. Call the accounts payable contact

When an invoice becomes overdue, contact the person responsible for processing payment. Establish whether the invoice has been received, approved or queried, then confirm any agreement by email.

For practical guidance, see six tips for making successful debt collection calls.

2. Check the invoice is correctly recorded

Payment can be delayed by missing purchase-order numbers, incorrect company details, approval problems or failed portal submissions. Correct genuine administrative issues promptly and resend the invoice where necessary.

Our guide to how to get invoices paid covers common causes of delay, while a payment link for faster settlement can reduce payment friction.

3. Get a dated commitment in writing

Ask for a specific payment amount and date, then record that agreement in writing. If the customer disputes the invoice, follow a step by step approach to disputed invoices rather than continuing routine chasing.

Where only part of the balance is paid, see handling part and short payments.

4. Understand your statutory rights

For qualifying business-to-business debts, statutory interest is normally 8 percentage points above Bank Rate unless the contract provides a different substantial remedy. Bank Rate is currently 3.75%, making the statutory rate 11.75% per year.

Fixed compensation can also be claimed: £40 for debts below £1,000, £70 for debts from £1,000 to £9,999.99 and £100 for debts of £10,000 or more.

If no payment date was agreed, a commercial payment normally becomes late 30 days after the later of receiving the invoice or receiving the goods or services. The GOV.UK guidance explains the rules.

Read how to claim statutory interest on late payments and writing a debt collection letter before escalating formally.

5. Escalate persistent non-payment

There is no universal legal rule requiring referral at 60 days, but setting an internal escalation point can stop overdue accounts drifting indefinitely. See when to escalate an invoice.

Statutory demands may be appropriate in limited circumstances involving undisputed debts and potential insolvency, but they should not be used merely as pressure where a genuine dispute exists. Read using statutory demands properly.

Frequently asked questions

How long before an invoice is legally late in the UK?

If an agreed payment date exists, the invoice generally becomes late after that date. Without one, the statutory 30-day rule normally applies.

Can I stop supplying a customer who has not paid?

Possibly, but your contractual rights and the circumstances matter. Check the agreement before suspending supply. A business credit check can also help assess future risk.

Who can chase invoices if we have no credit controller?

Outsourced credit control can provide a structured external chasing process.

Do some debts require specialist recovery?

Yes. construction debt recovery can involve payment applications, contractual notices and retentions, while international debt collection can involve different jurisdictions.

If an overdue business invoice is no longer responding to ordinary chasing, speak to our commercial debt collection agency about the available recovery options.