Prevent delays at the sale
Confirm who can approve the work, which purchase-order details are needed, where invoices must be sent and how acceptance is recorded. Put payment dates and dispute steps in the contract.
Send an invoice that can be processed
Include required business and tax details, a unique number, clear description, relevant dates, amount, VAT information where applicable and correct payment instructions. Match the customer's process and send it promptly.
Use a consistent reminder ladder
Send a friendly reminder at the due date, a clear overdue notice afterwards, then contact a named decision-maker. Log calls, promises and disputes so the next step is based on evidence.
Separate disputes from delay
Ask the customer to identify the exact disputed item. Resolve service or invoice errors quickly while requesting payment of any undisputed amount where appropriate. Confirm revised dates in writing.
Escalate proportionately
A final demand should set out the debt, prior contact, deadline and intended next step. UK law may permit statutory interest and recovery costs on qualifying late commercial payments, but check the contract and current guidance first.
Protect the business while collecting
Consider the debt value, evidence, recoverability, legal cost and customer relationship before using a solicitor, collection agency or court route. Get legal advice for contested or material debts.
Learn from every overdue account
Report debtor ageing, average collection time, disputes and promises missed. Feed the results into customer terms, credit limits and forecasting.
Founder checklist
- Agree written terms and approval steps
- Verify billing contacts and purchase-order needs
- Invoice accurately and promptly
- Record a dated reminder ladder
- Keep disputes and promises in writing
- Reforecast cash and escalate material debts early
Frequently asked questions
When is a commercial payment late?
It depends on agreed terms and statutory rules. If no date was agreed, legislation may supply one; check current GOV.UK guidance.
Can I charge interest?
Qualifying business-to-business debts may attract statutory interest and recovery costs, but the contract and current law must be checked.
Can the Small Business Commissioner help?
It may help eligible small businesses with unresolved disputes involving larger customers. Review its current remit and process.
Should I stop work immediately?
Not automatically. Check the contract, delivery risk and relationship, and obtain advice before suspending a material obligation.
