Every day your invoice goes unpaid, you lose money. The Late Payment of Commercial Debts Act 1998 gives you the right to claim statutory interest at 8% above base rate — plus a fixed recovery fee. Start your formal recovery today.
£50B+
Unpaid invoices in UK SMEs
8%
Statutory interest rate
30
Days standard payment terms
60-80%
Paid after Letter Before Action
UK SMEs are owed an estimated £50 billion in late payments. For small businesses, freelancers, and contractors, a single unpaid invoice can mean the difference between paying staff and making tough cuts.
The problem isn't just late payment — it's the power imbalance. Larger companies know that small suppliers lack the resources to chase debts formally. Informal chasing — emails, calls, texts — is easily ignored.
The Late Payment of Commercial Debts Act 1998
This legislation was introduced specifically to address the late payment problem in UK business. It gives creditors the automatic right to claim interest and compensation — without needing to prove loss.
A professionally prepared Letter Before Action (LBA) is the single most effective step you can take. It transforms your position from “chasing informally” to “formal legal creditor.”
Formal legal notice
Sets a 14-day deadline for payment
Statutory interest claim
References your automatic right to 8% + base rate
Fixed recovery fee
Claims £40–£100 compensation depending on invoice size
Court proceedings warning
Makes clear that court will follow if unpaid
Most unpaid invoices follow this pattern. The earlier you escalate to formal action, the better your outcome.
Invoice issued
Work complete, invoice sent with payment terms
Invoice issued
Work complete, invoice sent with payment terms
Payment due
Standard B2B terms — payment now legally overdue
Payment due
Standard B2B terms — payment now legally overdue
First reminder
Polite email or call — often ignored
First reminder
Polite email or call — often ignored
Second chase
Firmer tone, mention of escalation
Second chase
Firmer tone, mention of escalation
Final demand
Last informal attempt before formal action
Final demand
Last informal attempt before formal action
Letter Before Action
Formal legal demand — the turning point
Letter Before Action
Formal legal demand — the turning point
Different industries face different unpaid invoice challenges. Select yours to see how we help.
Builders, electricians, plumbers, roofers — domestic and commercial work where final invoices go unpaid or snagging is used to justify withholding payment.
Common scenario
Invoice issued for construction & trades services. Client acknowledges receipt but claims cash flow issues. 60+ days pass with partial promises but no payment.
Everything you need to recover your unpaid invoice professionally and legally.
Legally structured demand referencing your invoice, statutory interest, and 14-day payment deadline
Scored evaluation of your claim including evidence quality and recovery probability
Automatic calculation of 8% above Bank of England base rate from payment due date
£40, £70, or £100 compensation claim depending on your invoice value
Clear instructions from LBA through to county court claim if needed
Complete list of documents to gather: invoices, emails, delivery proofs, contracts
Pre-drafted claim form content ready for Money Claim Online submission
All documents generated immediately — ready to send within minutes
Guidance on next steps if your LBA is ignored or disputed
The Late Payment of Commercial Debts Act 1998 gives you automatic rights — no negotiation needed. Use our calculator to see what your unpaid invoice is really costing you.
Statutory Interest
8% above Bank of England base rate
Fixed Recovery Fee
£40 / £70 / £100 by invoice size
Reasonable Costs
Recovery expenses above the fixed fee
Based on 8% + 4.5% base rate (current). Interest calculated daily from payment due date.
Every day your invoice goes unpaid costs you money. Get your professional Letter Before Action today — with statutory interest calculated and your full legal entitlements claimed.
One-off payment · Instant download · No subscription · 60-80% success rate
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