Invoice Chaser Letter: Free Template and What to Include

If you need to formally chase an unpaid invoice before legal action, a written letter is the recommended first step — it creates a clear record and shows you're pursuing the matter formally. Below is what a strong invoice chaser letter should include.

What this letter needs to cover

• Reference the specific invoice number and amount
• Note the original due date
• State it remains unpaid
• Give a deadline for payment (7 days)
• State that failure to pay may result in legal action under the Late Payment of Commercial Debts Act
• Remain professional

Why a formal chaser letter works better than another reminder email

By the time an invoice needs formally chasing, informal reminders have usually already been ignored — a clear, firm letter signals you're taking the matter seriously and are prepared to escalate if needed. This often prompts payment on its own, before any further formal action becomes necessary.

What to include before you send it

• The invoice number, date, and amount outstanding
• Confirmation of any previous reminders already sent
• A clear final deadline for payment
• What happens if payment isn't received — late payment interest, or further legal action

Your right to charge interest on late commercial payments

Under the Late Payment of Commercial Debts Act, you may be entitled to charge statutory interest and a fixed compensation fee on overdue commercial invoices, even if your original terms didn't mention this — this is a legal right for business-to-business transactions, not something that needs to be specifically agreed in advance.

Frequently Asked Questions

Can I charge interest even if it wasn't in my original contract?
Yes — statutory interest under the Late Payment of Commercial Debts (Interest) Act applies automatically to qualifying commercial debts unless your contract already specifies a different rate.

What if this chaser letter doesn't get a response?
The next step is typically a formal letter before action, followed by small claims court proceedings if the amount qualifies and remains unpaid.

[Your Name / Business Name]
[Your Address]
[Your Postcode]
[Your Phone Number]
[Your Email Address]
[Accounts Contact / Client Name]
[Company Name]
[Company Address]
[Company Postcode]
[Date]

Dear [Name],

Subject: Overdue invoice [Invoice Number]

Invoice [Invoice Number] for £[Amount], issued on [Date] for [work done], was due for payment on [Due Date]. It is now [number] days overdue and remains unpaid. A copy is attached.

I sent reminders on [Date(s)].

Please pay the full £[Amount] within 7 days of this letter, to the bank details on the invoice. If it is not paid, I may claim interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 and take legal action to recover the debt.

If you have already paid, thank you, and please ignore this letter.

Yours sincerely,

[Your Signature]
[Your Printed Name]