How to Chase Late Invoices as a Tradesman - Scripts & Tips (2026)

Late payments are the biggest cash flow killer for tradespeople

You've done the work. You've sent the invoice. And now you're waiting. One week turns into two, two turns into a month, and suddenly you're covering material costs out of your own pocket while the customer goes quiet.

This is painfully common. According to the Federation of Small Businesses, late payments cost UK small businesses over £22 billion a year. For sole traders and tradespeople, a single unpaid invoice can mean the difference between paying your own bills or not.

The good news: most late payments aren't deliberate. People forget, lose the email, or simply need a nudge. Having a system in place to chase invoices professionally - without burning bridges - is essential. If you're still sending invoices manually, invoicing software for tradesmen can automate reminders and save you the hassle.

Before you chase - get your invoicing right

Most late payment problems start before the invoice is even sent. If your invoice is missing key details, it gives the customer a reason to delay.

Every invoice you send should include:

• Your business name, address, and contact details
• Customer name and address
• Invoice number (sequential - INV-001, INV-002, etc.)
• Invoice date and due date (always set a clear due date - "due in 14 days" is standard for trade work)
• Itemised breakdown of labour and materials
• VAT breakdown if you're VAT registered
• Payment details - bank account, sort code, account number
• Late payment terms - mention your right to charge interest (more on this below)

Getting these right from the start removes any excuse for delay. For a full walkthrough, see our guide on how to invoice as a sole trader.

The chasing timeline - when to send what

Don't wait until an invoice is 60 days overdue to start chasing. Follow this timeline:

Day of completion - send the invoice immediately

Send the invoice the same day you finish the job, or at most the next morning. The longer you wait, the less urgency the customer feels.

Use invoicing software to generate and send professional invoices from your phone while you're still on site.

3 days before due date - friendly reminder

A gentle heads-up before the due date. This catches the people who simply forgot.

Email template:

Subject: Upcoming payment reminder - Invoice #[NUMBER]

Hi [NAME],

Just a quick note to let you know that invoice #[NUMBER] for £[AMOUNT] is due on [DATE].

You can pay by bank transfer to the details on the invoice. Let me know if you have any questions.

Thanks, [YOUR NAME]

Due date - payment confirmation check

If the due date arrives and you haven't received payment, send a simple follow-up.

Email template:

Subject: Invoice #[NUMBER] - payment due today

Hi [NAME],

Invoice #[NUMBER] for £[AMOUNT] was due today. If you've already sent the payment, please ignore this - bank transfers can take a day or two to clear.

If not, I'd appreciate it if you could arrange payment at your earliest convenience. Payment details are on the attached invoice.

Thanks, [YOUR NAME]

7 days overdue - firmer follow-up

At this point, the invoice is officially late. Your tone should be polite but direct.

Email template:

Subject: Overdue invoice #[NUMBER] - 7 days past due

Hi [NAME],

I'm writing regarding invoice #[NUMBER] for £[AMOUNT], which was due on [DATE] and is now 7 days overdue.

Could you let me know when I can expect payment? If there's an issue with the invoice or the work, I'm happy to discuss it.

Thanks, [YOUR NAME]

14 days overdue - phone call

Stop emailing and pick up the phone. A phone call is harder to ignore and often resolves things immediately. Keep it professional:

• "Hi [NAME], it's [YOUR NAME]. I'm just following up on invoice [NUMBER] which is a couple of weeks overdue now. Is everything OK with the work? When can I expect the payment?"

Most people pay within 48 hours of a phone call. If they give you a date, note it down and follow up if they miss it.

30 days overdue - formal letter

If you've had no response to calls and emails, send a formal letter (posted, not emailed) with:

• The invoice details and amount owed
• A summary of previous chase attempts
• A deadline for payment (7-14 days)
• A statement that you may charge statutory interest and take further action

60+ days overdue - legal options

At this stage you have several options:

1. Statutory interest - Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge 8% plus the Bank of England base rate on overdue invoices, plus a fixed compensation fee (£40 for debts under £1,000, £70 for debts £1,000-£9,999, £100 for debts over £10,000)

2. County Court claim (small claims) - For debts under £10,000, you can file a claim through Money Claims Online (gov.uk/money-claims). The fee is typically £35-£120 depending on the amount. Most people pay up once they receive the court paperwork.

3. Mediation - A cheaper alternative to court. HMCTS offers free mediation for small claims.

4. Debt collection agency - They typically charge 10-15% of the recovered amount. Only use this as a last resort.

Tips that actually work

Always agree payment terms before starting

Before you pick up a tool, make sure the customer has agreed to your payment terms. Include them on your quote and get written acceptance. This is much easier with quoting software that captures digital acceptance.

Take a deposit for bigger jobs

For jobs over £500, ask for a 25-50% deposit before starting. This covers your materials and shows the customer is serious. For larger projects, break payments into stages - deposit, midway, and completion.

Invoice on the day, not "when you get round to it"

The number one reason tradespeople have cash flow problems is delayed invoicing. If you finish a job on Tuesday, don't wait until Sunday evening to send the invoice. Do it immediately from your phone.

Keep records of everything

Save every email, text, and note about payment discussions. If things go to court, this evidence is gold. A good job management tool keeps all of this in one place against each job.

Don't keep working for serial late payers

If a customer pays late once, follow up and move on. If they do it repeatedly, stop accepting work from them. Your time is better spent on reliable customers.

Your right to charge interest - know the law

Many tradespeople don't know they can legally charge interest on late invoices. Under UK law:

• Business-to-business (B2B): You can charge 8% plus the Bank of England base rate, plus a fixed compensation amount.
• Business-to-consumer (B2C): You can charge a "reasonable" rate of interest. Include this in your terms and conditions.

To use this, you should mention late payment interest on your invoices. Even if you never actually charge it, having it on the invoice encourages faster payment.

Automate the boring bits

Manually tracking which invoices are paid, which are overdue, and when to send reminders is a time sink. VioTrade's invoicing feature tracks payment status automatically and sends overdue reminders so you don't have to chase every invoice by hand.

You can also track your expenses against each job using expense tracking, so you always know your true profit margin even when payments are delayed.

Key takeaways

• Send invoices immediately - same day as job completion
• Use a clear timeline: reminder before due date, follow-up on due date, escalate weekly
• Always agree payment terms before starting work
• Take deposits on larger jobs
• Know your legal right to charge statutory interest
• Consider invoicing software to automate reminders and track payments
• Keep records of all communication in case you need to escalate

Late payments don't have to be a constant headache. A simple system and a bit of persistence will get most invoices paid within a reasonable timeframe - and for the ones that don't, you have legal options to recover what you're owed.