How freelancers can chase invoices without losing clients

Chasing an overdue invoice is one of the most dreaded tasks for any freelancer. You need the cash flow to run your business, but the last thing you want is to damage a good client relationship by appearing pushy, desperate, or unprofessional. This guide provides a practical, step-by-step process for chasing payments in the UK, complete with email templates and a tone that protects your client relationships while ensuring you get paid.

The Foundation: Preventing Late Payments in the First Place

The most effective way to handle late payments is to minimise them from the outset. A little administrative rigour before and during a project can make all the difference. This isn't about being bureaucratic; it's about being a professional who is easy to pay.

Clear Payment Terms in Your Contract

Your contract or statement of work is your first line of defence. Before you type a single word or design a single pixel, ensure your client has agreed to your payment terms in writing.

Your terms should clearly state:

• Payment Due Date: Is it "14 days from date of invoice," "30 days," or "due on receipt"? For new clients, shorter terms (7 or 14 days) are often wise. For established clients, 30 days is a common standard.
• Payment Methods: Make it easy for them. List your bank details for Bacs transfer clearly, including the account name, sort code, and account number. If you accept other methods, state them.
• Late Payment Policy: Include a clause referencing your right to charge interest and compensation on overdue commercial debts. You don't have to enforce it, but having it in the contract gives you leverage. A simple line is enough: "We reserve the right to claim statutory interest and compensation for debt recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998 if payment is not received according to our agreed credit terms."

Professional Invoicing

A confusing invoice is an invoice that gets put in a "deal with it later" pile. Your invoice must be crystal clear.

Ensure it contains:

• Your business name and address.
• The client's name and address.
• A unique invoice number.
• The invoice date.
• A clear description of the services provided.
• The total amount due (clearly showing VAT if applicable).
• The payment due date, stated prominently.
• Your payment details (Bacs is standard).

Sending the invoice to the right person is also critical. For a small business, it might be the owner you deal with. For a larger company, you need to ask, "Who should I send the invoice to for processing?" or "What is the email address for your accounts payable department?" Getting this wrong is a common cause of legitimate delays.

The Pre-emptive Reminder

One of the most effective, yet underused, techniques is the pre-emptive reminder. A few days before the invoice is due, send a polite, low-key email. This isn't chasing; it's a helpful customer service touch. It catches invoices that have been missed, forgotten, or are stuck in an approval queue.

Example Pre-emptive Email (2-3 days before due date):

Subject: Friendly Reminder: Invoice [Invoice Number]

Hi [Client Name],

Just a quick and friendly reminder that invoice [Invoice Number] for £[Amount] is due for payment on [Due Date].

A copy is attached for your convenience. Please let me know if you have any questions.

Best regards,

[Your Name]

This is friendly, helpful, and completely professional.

The Anatomy of a Professional Chasing Process

When an invoice becomes overdue, you need a systematic, escalating process. The key is to assume innocence first and only increase the firmness of your language as more time passes. Always remain professional, factual, and polite.

Step 1: The Gentle Nudge (1-3 Days Overdue)

The first follow-up should be light and assume a simple oversight. The goal is to bring the invoice to their attention without any hint of accusation.

Tone: Helpful, assuming administrative error. Method: Email.

Example Gentle Nudge Email:

Subject: Following Up: Invoice [Invoice Number]

Hi [Client Name],

Hope you're having a good week.

Just following up on invoice [Invoice Number] for £[Amount], which was due for payment on [Due Date]. I've attached it again in case the original went astray.

I would be grateful if you could let me know when payment can be expected.

Best regards,

[Your Name]

Step 2: The Polite Follow-Up (7-10 Days Overdue)

If a week has passed with no payment or response, it's time for a slightly more direct follow-up. The tone is still polite and professional, but it's now clearly a payment reminder.

Tone: Polite but direct. Method: Email.

Example Polite Follow-Up Email:

Subject: Overdue Invoice: [Invoice Number] - £[Amount]

Hi [Client Name],

Following up on my previous email, invoice [Invoice Number] is now 7 days overdue.

Please could you look into this for me as a matter of priority? If payment has already been sent, please disregard this message.

A copy of the invoice is attached again for your reference.

Kind regards,

[Your Name]

Step 3: The Phone Call (14+ Days Overdue)

If two emails have been ignored, it's time to pick up the phone. Emails are easy to ignore; a phone call is not. A call can quickly uncover the real reason for the delay—perhaps the invoice is disputed, lost, or the person responsible is on holiday.

Tone: Inquisitive and firm, but not aggressive. Goal: To speak to the right person and get a concrete date for payment.

How to handle the call:

1. Be Prepared: Have the invoice number, date, and amount in front of you.
2. Ask for the Right Person: "Hello, could I please speak to the person responsible for accounts payable? I'm calling about an invoice from [Your Name/Business Name]."
3. State the Facts: "Hi [Client Name], I'm calling about invoice [Invoice Number] for £[Amount], which was due on [Due Date] and is now two weeks overdue. I've sent a couple of emails, so I wanted to call to make sure there wasn't a problem with it."
4. Listen: Let them explain. The reason could be simple.
5. Get a Commitment: The most important part of the call is to end with a specific commitment. Don't accept "I'll look into it." Ask, "Can you confirm you have the invoice and there are no issues with it? Great. When can I expect to receive payment?" Pin them down to a specific date.
6. Follow Up in Writing: After the call, send a brief email summarising what was agreed. "Hi [Client Name], thanks for your time on the phone today. As discussed, you have confirmed that invoice [Invoice Number] will be paid on or before [Agreed Date]. Many thanks." This creates a written record.

Step 4: The Firm Notice (21-30 Days Overdue)

If the promised payment date from the phone call is missed, or if you couldn't get through, the tone must now become much more serious. This email explicitly states the invoice is significantly overdue and mentions your contractual right to add late payment charges. This is often the final warning before you begin a more formal debt recovery process.

Tone: Serious, formal, and referencing your contract. Method: Email.

Example Firm Notice Email:

Subject: FINAL NOTICE: Invoice [Invoice Number] - Overdue by 30 Days

Dear [Client Name],

Further to my previous emails and phone calls, invoice [Invoice Number] for £[Amount] remains unpaid. It is now 30 days overdue.

This is a breach of our agreed payment terms. We require payment of the full outstanding amount within 7 days.

Please be aware that under our terms and the Late Payment of Commercial Debts (Interest) Act 1998, we are entitled to apply statutory interest and a fixed sum compensation charge to overdue invoices. We have so far waived this right but will add these charges if the full amount is not received by [Date 7 days from now].

Please settle this outstanding balance immediately to avoid further action.

Regards,

[Your Name]

When Politeness Isn't Enough: Escalation and Statutory Rights

For most clients, the process above will work. But for the small minority who still won't pay, you need to know your rights as a UK business. The law is on your side.

The Late Payment of Commercial Debts (Interest) Act 1998

This piece of UK legislation is your most powerful tool. It applies to business-to-business transactions and gives you a statutory right to claim interest and compensation on overdue invoices, even if you didn't include it in your original contract.

How to Calculate Statutory Interest

You can charge interest at a rate of 8% plus the Bank of England's base rate. This is known as the 'statutory interest' rate.

• Find the Base Rate: The Bank of England base rate can change. You should use the rate that was in force on the day the invoice became overdue. You can find the current and historical rates on the Bank of England's website.
• Calculate Daily Interest: (Total Debt x (Base Rate + 8%)) / 365 = Daily Interest.
• Calculate Total Interest: Daily Interest x Number of Days Overdue = Total Interest Owed.

For example, if the debt is £1,000 and the base rate is 5.25%:

• The statutory interest rate is 5.25% + 8% = 13.25%.
• The annual interest is £1,000 x 0.1325 = £132.50.
• The daily interest is £132.50 / 365 = £0.36.
• If the invoice is 45 days late, you can claim £0.36 x 45 = £16.20 in interest.

Fixed Sum Compensation

In addition to interest, you can also claim a one-off fixed compensation payment for the cost of recovering the debt. The amount depends on the size of the debt.

Debt Amount	Compensation You Can Claim
Up to £999.99	£40
£1,000 to £9,999.99	£70
£10,000 or more	£100

You can claim this for each overdue invoice, not just once per client.

The Letter Before Action (LBA)

If your Final Notice is ignored, the next formal step is a Letter Before Action. This is a final demand that formally states your intention to begin legal proceedings (such as using the Small Claims Court) if the debt is not paid by a specific deadline.

An LBA must contain:

• A clear heading "Letter Before Action".
• The full details of the debt (invoice numbers, dates, amounts).
• The total amount now due, including any statutory interest and compensation you have added.
• A final deadline for payment (e.g., 14 days).
• A clear statement that if payment is not received by this date, you will commence legal proceedings to recover the debt without further notice.

This is a serious legal document and often prompts immediate payment from even the most difficult clients. This is general guidance, not legal advice, and if you reach this stage, you may wish to seek advice on the specifics of your case.

Automating the Process Without Losing the Human Touch

Manually tracking due dates and sending these emails is time-consuming and emotionally draining. It's easy to forget a step, use the wrong tone, or simply put it off. This is where automation becomes a freelancer's best friend.

A dedicated system can manage the entire chasing sequence for you. Tools like InvoiceReminder connect directly to your accounting software (like Xero, QuickBooks, FreeAgent, or Sage) and automatically send out your pre-configured reminder emails according to a schedule you set. You can customise the templates to match your brand's voice, ensuring the friendly-to-firm escalation happens consistently and professionally every single time. This frees you from the administrative burden and emotional labour of chasing, allowing you to focus on your actual work while ensuring a consistent, professional approach to credit control.

Frequently asked questions

What is the best first step for a slightly overdue invoice?

The best first step is a gentle, polite email sent 1-3 days after the due date. Assume it's an oversight. The tone should be helpful, simply asking if they received the invoice and when you can expect payment. Always attach a copy of the invoice to this email.

Can I charge interest on a late invoice in the UK?

Yes, for business-to-business (B2B) invoices, you have a statutory right to charge interest under the Late Payment of Commercial Debts (Interest) Act 1998. The rate is 8% plus the Bank of England base rate. You can also claim a fixed compensation sum of £40-£100 depending on the debt size.

Is it unprofessional to chase an invoice on its due date?

It can come across as a little aggressive. It's better to give your client 1-2 business days' grace after the due date before sending the first reminder. A more professional approach is to send a friendly, pre-emptive reminder a few days before the due date as a helpful customer service gesture.

Should I stop work for a client who hasn't paid an old invoice?

This depends on your contract and the relationship. If your contract includes a clause allowing you to suspend services for non-payment, you are within your rights to do so. Politely inform the client in writing that all further work is on hold pending settlement of the outstanding balance. It's a strong move, so weigh the value of the client against the risk of non-payment.

What is the difference between a reminder and a statement of account?

A reminder typically refers to a single overdue invoice. A statement of account (or 'statement') is a summary of all transactions between you and a client over a period, showing all invoices, payments, and the final outstanding balance. Sending a statement can be a good way to follow up if a client has multiple overdue invoices.

How can I make sure my invoice gets paid on time by a large company?

With large companies, the key is getting your invoice into their payment system correctly. Before you even issue it, ask for their purchase order (PO) number if they use one, and confirm the exact email address for their accounts payable department. Invoicing the wrong person or omitting a required PO number is the most common reason for delays.

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Stop Chasing, Start Automating

Manually chasing invoices drains your time and energy. InvoiceReminder helps UK freelancers, small businesses, and accountancy practices automate their credit control. By connecting to Xero, QuickBooks, FreeAgent, and Sage, it sends scheduled, escalating reminders for you, so you can stop typing "just following up" and focus on what you do best. The process described in this article can be fully automated, ensuring consistency and professionalism without the manual effort.

The Free plan currently includes unlimited email reminders at no cost, with no card required to sign up. InvoiceReminder is built by the team behind WeCovr, which has arranged over 1,000,000 insurance policies in the UK and is authorised and regulated by the Financial Conduct Authority.