How to Chase Unpaid Invoices: The 3-Email Sequence That Actually Works

Chasing unpaid invoices is one of the worst parts of running a trade business. Go too soft and you get ignored. Go too hard and you burn the relationship — or look unreasonable if it does end up in court.

The sequence below is what works. It\'s professional, it escalates in clear steps, and it gives you a documented paper trail. Most importantly: most people never get past Email 2. The ones who follow the full sequence get paid.

Why this sequence works

The principle is simple: every email should be a step up in tone. You never jump from polite to legal threat without the steps in between.

Here's why that matters:

• It shows reasonableness — if it does go to court, the judge will see you tried multiple times to resolve it fairly
• It gives genuine mistakes a chance to be corrected — most late payments at the early stage are accidental (invoice buried in email, payment forgotten, wrong person)
• It separates the time-wasters from the genuinely difficult customers — by Email 2, you know if they\'re stalling or if there\'s a real issue
• It protects your reputation — you can't be accused of being aggressive or unreasonable. You gave them every chance.

Email 1: The Polite Nudge

When to send: The day payment is due, or the day after.

The idea: Keep it friendly. Give them the benefit of the doubt. Most late payments at this stage are genuinely accidental — invoices get buried, payments get forgotten, the email went to the wrong person. This email is a professional nudge, not an accusation.

Why this works: It's polite, assumes good faith, and doesn't create confrontation. You\'re giving them an easy out ("it slipped through the net") while still making it clear you\'re tracking this.

What usually happens: About 60-70% of people pay within 2-3 days of this email if the late payment was genuinely accidental.

Email 2: The Firm Follow-Up

When to send: 7 days after Email 1 with no response or payment.

The idea: The friendly nudge didn't work. Now it's time to be clear that this is overdue and you expect action. Still professional — no aggression — but the tone has shifted. The 7-day deadline is explicit.

Why this works: The language is firmer ("significantly overdue", "matter of urgency", "no option but to take further action") but still reasonable. You\'re giving them one more chance before it gets legal.

What usually happens: Another 20-30% pay at this stage. If they're stalling, this email forces them to either pay or give you a reason why they haven\'t (which you can then address).

Email 3: Letter Before Action (LBA)

When to send: 7 days after Email 2 with no response or payment.

The idea: This is the final step before small claims court. A Letter Before Action (LBA) is a formal legal requirement before filing a court claim — and in most cases, it\'s what finally gets you paid. The tone is formal, factual, and leaves no room for ambiguity.

Important: Send this by recorded delivery (Royal Mail Signed For or Special Delivery) so you have proof of receipt. Also send by email for speed. Keep copies of everything.

Why this works: The threat of a County Court Judgment (CCJ) on their credit file is serious. Most people pay within 48 hours of receiving this letter because they don\'t want a CCJ following them around for six years.

Key points when using this template:

• Fill in all the bracketed details — dates, amounts, invoice numbers must be exact
• List your previous contact attempts — shows you've tried to resolve it reasonably
• 14 days is standard — gives them reasonable time, not so long they ignore it
• Send it twice — recorded delivery (proof of receipt) AND email (speed)
• Keep copies — you'll need these if you do go to court

What happens after the Letter Before Action?

Scenario 1: They pay (most common)
About 80% of people pay within 7-14 days of receiving a Letter Before Action. Job done. Send a receipt and move on.

Scenario 2: They contact you to dispute or negotiate
If there\'s a genuine dispute about the work quality, you can still resolve this without court. Separate the two issues: "I\'ll fix any snagging under the guarantee, but payment is still due." If they want to negotiate (e.g., pay in installments), get it in writing and make sure the agreement is clear.

Scenario 3: They ignore it
If 14 days pass with no payment and no contact, your options are:

• Small claims court — file online via Money Claim Online (gov.uk). Court fees range from £35 (under £300) to £455 (£5,000-£10,000). You can claim the fee back if you win. Most cases settle before the hearing — the court sends them a claim form and that\'s usually enough.
• Debt collection agency — they'll chase on your behalf for a percentage of the debt (typically 10-30%). Only worth it for larger amounts.
• Write it off — if it's a small amount and they're clearly not paying, sometimes walking away is the right call. Claim it as a bad debt for tax purposes and learn from it.

Common mistakes when chasing payment

Mistake 1: Waiting too long to start chasing

The older the debt, the harder it is to recover. Start chasing the day it\'s due. Don\'t wait "a few more days" or "give them a bit longer" — that just makes it harder.

Mistake 2: Going straight to threats

If your first email says "pay or I\'ll take you to court", you look unreasonable if it does end up in court. The judge wants to see you tried to resolve it fairly first.

Mistake 3: Accepting vague promises

"I\'ll pay you next week" or "it\'s in the pipeline" means nothing unless you get a specific date in writing. Always confirm: "Thanks for confirming payment by [specific date]. I\'ll follow up on [date] if I haven\'t received it."

Mistake 4: Not keeping written records

Phone calls don\'t count as evidence. If you call them, follow up with an email summarizing what was said: "Further to our phone call today, you confirmed payment will be made by [date]." You need a paper trail.

Mistake 5: Letting them withhold payment over snagging

If you have a guarantee (most trades do — 1 or 2 years), snagging is your problem to fix. But it\'s not their excuse to withhold payment. Separate the two: "I\'ll come back and sort any issues under the guarantee. Payment is still due today."

When late payment becomes a structural problem

This guide is about chasing one-off late payers. But if late payment is a recurring structural problem in your business — if you're constantly waiting 60, 90, even 120 days to get paid — chasing individual invoices isn\'t solving the underlying issue.

That's where invoice finance can help.

Invoice finance releases up to 90% of your invoice value within 24 hours, so you\'re not sitting around waiting for payment. It\'s particularly common in construction, recruitment, and haulage — sectors where 60+ day payment terms are standard and late payment is endemic.

It\'s not cheap (typically 1-4% of annual turnover), but if late payment is costing you missed supplier discounts, emergency overdraft fees, or the ability to take on new work because your cash is tied up, it can make sense.

Read our guide to invoice finance to understand how it works and whether it\'s right for your business.

Frequently asked questions