It is one of the most stressful parts of running a business — but a late invoice is usually recovered with a calm, documented escalation, not a fight. Here is the plan, and how the reason they are not paying changes your next move.
When a customer will not pay an invoice, escalate in calm, documented steps: confirm the debt is due and undisputed, send a firm reminder, then a Letter Before Action with a clear deadline, and only then a County Court claim. The right next move depends on whether they can’t pay, won’t pay, or are disputing the work.
‘Will not pay’ covers four very different situations, and each one points to a different next move.
| What is really going on | Best next move |
|---|---|
| Just slow — an admin delay or a missed invoice | A polite reminder usually settles it. |
| Won’t pay — ignoring you, no real reason given | Reminder, then a Letter Before Action, then a claim. |
| Can’t pay — the business has no money | Check they can pay; consider written instalments. |
| Disputing — arguing the work, amount or contract | Gather evidence; a genuine dispute may need advice. |
Before you spend anything on court fees, it is worth checking the debtor can actually pay — winning a judgment against a business with no money recovers little or nothing.
For a clear, undisputed debt the path is the same every time — and each step gives the debtor another chance to pay.
Start with a firm, factual reminder. If that is ignored, a Letter Before Action sets a formal deadline and shows you are serious; many debtors pay at this point. If the deadline passes, you can prepare a County Court claim on the small-claims track — for a business debt up to £10,000 — and, if the debtor still does not respond, obtain a default judgment. The full recovery process walks through each stage.
Pressure that is calm and documented works better than threats — and keeps you on the right side of the line.
Keep the tone measured at every stage: state what is owed, why, and what happens next, as fact rather than threat. You can usually add statutory interest and a fixed sum of compensation to a late B2B invoice under the Late Payment of Commercial Debts Act — the interest calculator works out the total. Where you can, keep the door open to the working relationship; most customers who are simply slow come good once they see you follow a clear process.
None of this is legal advice. If the debt is disputed, consumer, or high-value and complex, consider taking your own advice. New to the terms here? See the glossary.
Escalate in calm, documented steps rather than jumping to court. Confirm the invoice is due and undisputed, send a firm written reminder, then a Letter Before Action giving a clear payment deadline, and only then prepare a County Court claim. Most invoices are paid before the claim stage once the debtor sees you will follow through.
A reminder first, then a Letter Before Action, before any claim. The court expects you to give the debtor a fair chance to pay before you issue proceedings — that is the point of the pre-action conduct rules, and, where you are chasing a sole trader or individual, the Pre-Action Protocol for Debt Claims. Going straight to court without warning can cost you on costs even if you are owed the money.
Can't-pay is a different problem from won't-pay. It can be worth agreeing a realistic instalment plan in writing rather than forcing a claim against a business with no money. Before you spend on court fees, it is worth checking the debtor can actually pay — a judgment against an insolvent company recovers little or nothing.
A genuine dispute about the work, the amount or the contract needs different handling: gather your evidence, and consider legal advice. The reminder and Letter Before Action route, and a default judgment, are for clear, undisputed debts — using them to pressure a genuinely disputed debt can backfire. RobinReturn is built for documented, undisputed B2B invoices.
Yes, for a commercial debt between businesses. Under the Late Payment of Commercial Debts (Interest) Act 1998 you can usually add statutory interest and a fixed sum of compensation (£40, £70 or £100 by invoice size) to a late B2B invoice. The interest calculator works out the running total.
Start with the lowest-friction move — a reminder while the debt is fresh — and escalate only if the customer gives you a reason to. RobinReturn is not a law firm and does not give legal advice.