Overdue Invoice: How to Handle Late Payments Professionally (2025)
Updated May 2025 Β· 8 min read
An overdue invoice is one that's passed its payment due date without being paid. It happens to almost every freelancer and small business. What matters is what you do next β and how quickly you do it.
π By the numbers
- β’ 50% of B2B invoices in the UK are paid late
- β’ Average overdue period: 12 days past due date
- β’ A debt 90+ days overdue has a 26% chance of never being collected
- β’ The earlier you chase, the higher your recovery rate
What to Do When an Invoice Is Overdue
Check if payment was actually made
Before sending a chase email, verify your bank account. Payments can take 1β3 business days to clear. Check on the due date + 1 business day before assuming non-payment.
Send a polite reminder within 3 days
The sooner you follow up, the better your recovery rate. Send a brief, friendly email that assumes the invoice was overlooked β not that the client is deliberately not paying.
Pick up the phone after 7 days
Email is easy to ignore. A phone call to the accounts team or your main contact is much harder to avoid. Keep it casual and professional β this isn't a confrontation.
Send a formal overdue notice after 14 days
At this point, be direct. State the invoice number, amount, due date, and days overdue. Mention statutory interest is accruing. Give a specific payment deadline.
Issue a Letter Before Action at 21β30 days
An LBA is a formal letter stating your intent to pursue legal action if payment isn't received within 7 days. This is a legal prerequisite to court action and often triggers immediate payment.
Overdue Invoice Email Template
Three stages β copy and adapt:
Stage 1 β Gentle reminder (3 days overdue)
FriendlySubject: Invoice #[INV-001] β quick check-in
Hi [Name],
Just checking in on Invoice #[INV-001] for [Β£/β¬][amount], which was due on [date]. If it slipped through the cracks, no worries at all β here's a copy attached.
Please let me know if you need anything to process this. Thanks!
[Your name]
Stage 2 β Direct follow-up (7β14 days overdue)
DirectSubject: Invoice #[INV-001] β now [X] days overdue
Hi [Name],
I'm following up on Invoice #[INV-001] for [Β£/β¬][amount]. This is now [X] days past the due date of [date] and I haven't heard back from my previous message.
Could you please confirm when payment will be processed, or let me know if there's an issue I should be aware of?
Best,
[Your name]
Stage 3 β Formal overdue notice (14β21 days)
FormalSubject: OVERDUE: Invoice #[INV-001] β immediate payment required
Dear [Name],
Invoice #[INV-001] for [Β£/β¬][amount] issued on [invoice date] with payment due on [due date] is now [X] days overdue.
Under the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest is accruing on this debt. A debt recovery fee of [Β£40/Β£70/Β£100] is also claimable.
Please arrange immediate payment to the account details below. If payment is not received by [date + 7 days], I will be forced to take further action to recover this debt.
Yours sincerely,
[Your name]
[Bank details]
Your Legal Rights on Overdue Invoices
Statutory interest (UK)
8% + Bank of England base rate (currently ~12.25% p.a.) on overdue B2B invoices. Applies automatically β no contract clause needed.
Debt recovery costs (UK)
Β£40 (under Β£1K), Β£70 (Β£1KβΒ£10K), Β£100 (over Β£10K). Claimable automatically under the Late Payment Act.
EU statutory interest
ECB rate + 8 percentage points (~11.4% p.a.) for B2B invoices across EU member states.
Small Claims Court
UK: up to Β£10,000. Fee of Β£35βΒ£455. No lawyer required. CCJ damages debtor credit rating.
When and How to Escalate
| Days overdue | Action | Expected outcome |
|---|---|---|
| 1β3 days | Email reminder | ~60% pay on first reminder |
| 4β7 days | Second email + phone call | ~25% more pay here |
| 8β14 days | Formal email with interest notice | ~10% more pay here |
| 15β30 days | Letter Before Action | ~4% more pay here |
| 30+ days | Court / debt collection agency | Remaining 1% |
How to Prevent Overdue Invoices
FAQ
What's the difference between overdue and past due?βΎ
They mean the same thing β both refer to an invoice that has passed its payment due date without being paid. 'Past due' is more common in US English; 'overdue' is more common in UK/AU English.
Can I charge interest on an overdue invoice without warning?βΎ
In the UK, yes β UK statutory interest applies automatically to B2B overdue invoices under the Late Payment Act 1998, even without a prior clause in your contract. It's still good practice to include it in your invoice terms.
What if my client says they already paid?βΎ
Ask for proof of payment (bank transfer reference, screenshot). If they have it and you can't find the payment, check your bank account carefully β it may be pending. If you can't reconcile it, contact your bank before accusing the client.
How long do I have to chase an overdue invoice?βΎ
In the UK, the limitation period for a contract debt is 6 years (England/Wales) or 5 years (Scotland). After this, the debt becomes statute-barred. In the EU, this varies by country (typically 3β5 years).
What if chasing damages my client relationship?βΎ
A professional, timely, and factual approach rarely damages relationships. What damages relationships is inconsistency β chasing aggressively sometimes and letting other invoices slide. Automation makes your approach consistent and impersonal, which clients actually prefer.
Never have an overdue invoice again
Chaser sends automatic reminders before and after the due date β catching late payments before they become overdue, without you lifting a finger.
Prevent late payments automatically βFree plan Β· 3 invoices Β· No credit card