Got a client or customer who still hasn’t paid? You’re not alone. Late payments eat into cash flow and can hurt a small business fast. The good news is you don’t need a law degree to start collecting. Follow these clear steps and you’ll see results without burning bridges.
Don’t wait until the invoice is months overdue. As soon as the payment due date passes, send a friendly reminder. A short email or text that says, “Hey, just checking if you received the invoice – can you let me know when we can expect payment?” works wonders. If two weeks go by with no reply, follow up with a firmer tone, giving a clear deadline and reminding them of any late‑fee policy you have.
Timing matters. The longer you wait, the harder it gets to prove the debt later. Keep a spreadsheet of every invoice, reminder date, and response. This record will be your safety net if the situation escalates to a formal demand.
Sometimes a polite reminder just isn’t enough. That’s when a professional agency can step in. Choose an agency that works on a “no win, no fee” basis – they only get paid when they recover money. Ask for references and check they are registered with the Financial Conduct Authority (FCA). A good agency will keep your brand tone in mind, so the collector doesn’t scar your relationship with the customer.
Before signing a contract, read the fine print. Some agencies charge high percentages or add extra fees for legal letters. Make sure you understand the cost structure and any extra charges for court action. A transparent agency will give you a clear plan and let you see progress online.
Even if you hand the case to an agency, stay involved. Ask for copies of every letter they send and keep your own notes. If the debtor agrees to a payment plan, make sure the terms are written down and that you follow up on each installment.
Legal notices are the next step if the debt still isn’t paid. A formal letter from a solicitor shows you’re serious and can trigger a quicker response. Keep the language factual, list the amount owed, the original invoice date, and a final deadline before you consider court.
Going to court should be a last resort. Small claims courts in the UK are straightforward, but you’ll need all your documentation – invoices, emails, reminder logs, and any collection agency reports. If the court rules in your favor, you can recover the money plus court costs.
Throughout the process, stay professional. Avoid angry emails or social media shaming. Maintaining a calm, factual tone protects your reputation and keeps the door open for future business, even if the current customer never pays.
Remember, the goal of debt collection isn’t to punish, it’s to get the cash you’re owed. By acting quickly, keeping solid records, and choosing the right help when needed, you’ll improve cash flow and reduce stress.
Wondering if unpaid debt just vanishes after seven years? This article breaks down what really happens after you ignore a debt for that long. You'll find out how your credit report changes, whether collectors can still chase you, and what 'statute of limitations' means for your bank account. Plus, get smart tips on handling old debts and avoiding common mistakes. Cut through the myths and learn what to really expect after seven years without making payments.