You did the work, sent the invoice, and the due date came and went. Now the client is slow to reply, or not replying at all.
It's stressful, especially when one invoice is a big share of your month. The good news is that a calm, step-by-step approach recovers most late payments without lawyers. The steps below follow the order official small-business guidance recommends: contract first, then reminders, a demand letter, dispute resolution, collection, and court only as a last resort (business.gov.au).
Need the reminder email right now? The free ChaseKindly payment reminder generator writes one for you, with the right tone for how late the invoice is.
Step 1: Check your own paperwork first (10 minutes)
Before you chase anyone, make sure your side holds up. Find:
- The agreement. A contract, a signed quote, or the emails where the client accepted your price and scope. A verbal agreement can still count, but you'll need proof of what was agreed, such as messages or emails (business.gov.au, linked above).
- The payment terms. What date was agreed? If you didn't set one, some laws fill the gap. In the UK and EU, a business payment is generally treated as late 30 days after the customer receives the invoice or the work is delivered, whichever is later (GOV.UK; Your Europe). Several US laws use a similar 30-day default for freelancers (see below).
- The invoice itself. Is it addressed to the right legal entity, with the right amount, a PO number if they need one, and your payment details? A surprising number of "late" invoices are actually stuck because of a missing detail.
- Proof of delivery. Sent files, a sign-off email, a live link.
Fix anything wrong on your side and resend. If the mistake was yours, it's fair to agree a new due date.
Step 2: Send a friendly reminder, then follow up
Assume it was an oversight until you have evidence otherwise. Send a short, specific reminder with the invoice number, amount, due date and a payment link, and ask one question: when can I expect payment?
If you hear nothing for a few days, follow up, and widen the net:
- Ask whether the invoice should go to someone else (accounts payable, finance, the owner).
- Copy in the accounts address if you have it.
- Pick up the phone. A two-minute call often gets a payment date that three emails didn't.
Freelancing.Support's UK guide suggests contacting the client's finance team and, if there's no response within a day, calling them, then confirming any new payment date in writing (Freelancing.Support).
Our payment reminder email templates cover every stage, from a heads-up before the due date to a final notice. Or let ChaseKindly plan the sequence for you. Automatic sending coming soon.
Step 3: Listen to the reason, and offer a way to pay
Once a client replies, the reason usually tells you what to do next:
| What they say | What to do |
|---|---|
| "We never got it" / "It's with finance" | Resend the invoice to the right person and agree a date in writing. |
| "Cash flow is tight right now" | Offer a short payment plan: say, two or three instalments with fixed dates, confirmed by email. Some money on a schedule usually beats waiting for all of it. |
| "We're not happy with part of the work" | Treat it as a dispute, not a late payment. Ask exactly what's wrong, fix what's fair, and consider invoicing the undisputed part separately. |
| Silence | Move to Step 4. |
Keep everything in writing. If they admit they owe the money ("I know, I'll sort it next week"), save that message. It's useful evidence later.
Pause new work. Continuing to deliver for a client who hasn't paid only increases what's at risk. You can say so neutrally: "I'll pick the next phase back up as soon as invoice #1042 is settled."
Step 4: Send a formal letter of demand
If friendly reminders haven't worked, send a formal written demand. Depending on where you are, it's called a letter of demand, a demand letter or a letter before claim/action. It should state:
- what's owed, with invoice numbers, dates and the amount
- the basis for it (your agreement)
- any interest or fees you're entitled to claim, and how you calculated them
- a clear deadline (often 14 days)
- exactly what you'll do if it isn't paid: name the agency or the court
- how to pay, and how to raise a genuine dispute
In England and Wales, this step isn't just a courtesy. The courts expect parties to exchange information and try to settle before a claim, normally allowing a reasonable time (often 14 days) to respond (Practice Direction: Pre-Action Conduct and Protocols). If your client is an individual, including a sole trader, the stricter Pre-Action Protocol for Debt Claims applies, which gives the debtor 30 days to reply.
A letter from a solicitor costs more, but often gets a faster reaction. You don't have to hire them for anything beyond that.
Step 5: Know what extra you can claim
Late payment can carry real consequences, but only the ones your contract or local law actually allows:
- UK: business-to-business debts carry statutory interest of 8% plus the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the debt (GOV.UK).
- EU: at least the reference rate plus 8 percentage points, and at least €40 compensation per late invoice (Directive 2011/7/EU).
- Elsewhere: it usually depends on what your contract says.
Our late payment fees and interest by country guide explains how to calculate and invoice these properly. One caution: don't add interest to an invoice that's genuinely disputed. The UK Small Business Commissioner notes you can't charge interest and compensation on an invoice paid late because of a dispute (OSBC).
Step 6: Use free or low-cost help before court
Many countries have free or low-cost services that sit between "angry email" and "lawsuit":
- Australia: the Australian Small Business and Family Enterprise Ombudsman has a dispute support tool for finding low-cost dispute resolution near you (ASBFEO).
- UK: the Office of the Small Business Commissioner offers guidance and an interest calculator for late payment (OSBC).
- US (New York, California, Illinois): state and city freelancer laws give independent contractors specific payment rights, and in some cases a way to file a complaint (see below).
- Cross-border within the EU: Your Europe lists help such as the Enterprise Europe Network (Your Europe).
Mediation is quicker and cheaper than court, and it can save a relationship that's worth keeping.
Step 7: Debt collection or small claims, as a last resort
If the client still won't engage, you have two main routes:
A debt collection agency. They usually take a percentage of whatever they recover. Tell the client you're about to refer the debt. That warning alone sometimes prompts payment, a point Australia's official guidance makes too (business.gov.au, linked above).
Small claims / money claims court. Built for exactly this situation, and you usually don't need a lawyer. Each country (and each US state) sets its own limits and fees, so check your local court's website. In England and Wales, for example, you can claim a fixed amount online through the government's money claim service if you meet the eligibility rules (GOV.UK: Make a court claim for money).
Before choosing either route, weigh the amount owed against the time, fees and stress. And remember that winning a judgment and actually collecting the money aren't the same thing.
Freelancer payment laws in the US
The US has no single federal rule for paying freelancers, but several places have passed their own:
- New York State: the Freelance Isn't Free Act requires a written contract and payment by the agreed date or, if none is set, within 30 days of completing the work (NY Department of Labor). New York City has its own version, enforced by the Department of Consumer and Worker Protection (NYC DCWP).
- California: the Freelance Worker Protection Act (SB 988), in effect since 1 January 2025, uses the same 30-day default for covered contracts (California Legislature).
- Illinois: the Freelance Worker Protection Act, in effect since 1 July 2024, sets a 30-day default too and lets freelancers file a complaint with the state Department of Labor (IDOL).
If one of these applies to you, mentioning it politely in a reminder can work well.
Stop it happening again
- Get a written agreement with the price, scope, payment date and late-payment terms.
- Take a deposit on new or large projects.
- Use short terms and a pay link. Make paying the easiest thing on their to-do list.
- Send reminders before the invoice is late, not just after.
- Plan the chasing. ChaseKindly plans polite, escalating reminders. Automatic sending coming soon. When it is on, reminders stop when you mark an invoice paid. It's free for up to 3 active (unpaid) invoices, and Pro is $12/month.
Start with a polite nudge: generate a payment reminder email for free.
This guide is general information, not legal advice. For large debts or complex disputes, speak to a lawyer or your local small-business support service.