Getting paid

What can I do if a customer won't pay?

7 min read · Updated 24 June 2026

Start calm and escalate in steps: a friendly reminder, then a firm written request, then a formal 'letter before action' giving a deadline, and finally a small claims court claim if they still won't pay. Most disputes settle long before court once the customer sees you're serious and organised.

An unpaid invoice is stressful, but going in all guns blazing usually backfires. A calm, documented, step-by-step approach gets you paid more often — and sets you up properly if it ever does reach court.

Step 1: The friendly nudge

People forget, lose invoices, or are waiting on their own money. A polite reminder a few days after the due date clears up most cases. Keep it short and assume the best.

Step 2: The firm reminder

If that's ignored, follow up in writing (email or text) restating the amount, the original due date, and a clear new deadline to pay. Reference the accepted quote and the completed work. Keep every message — it's your evidence.

Step 3: Letter before action

Still nothing? Send a letter before action (also called a letter before claim). It states what's owed, for what, by when, and that you'll start a court claim if it isn't paid. This is the formal step courts expect you to take first, and it's often the one that gets you paid — it shows you're serious.

Keep it factual and professional. Set out the invoice number, amount, what the work was, and a firm deadline (commonly 14 days). Avoid threats or emotional language — you may need to show this letter to a judge.

Step 4: Small claims court

For debts up to £10,000 in England and Wales, the small claims track is designed to be used without a solicitor. You can start a claim online through Money Claim Online, pay a court fee (which you can ask to recover), and the process is relatively straightforward. Scotland (simple procedure) and Northern Ireland have their own equivalent systems with different limits.

Don't forget interest and costs

Depending on whether your customer is a business or a consumer, you may be able to add interest and recovery costs to what you're owed. See our guide on charging interest on late payments for how that works.

How to avoid it next time

Quick questions

What's the first thing to do about an unpaid invoice?

Send a polite reminder a few days after the due date — many late payments are simple oversights. Keep it short and professional, and keep a record of every message in case you need to escalate later.

What is a letter before action?

A letter before action (or letter before claim) is a formal written notice setting out what you're owed, for what work, and a deadline to pay before you start a court claim. Courts expect you to send one first, and it often prompts payment on its own.

Can I take a customer to small claims court for not paying?

Yes. For debts up to £10,000 in England and Wales you can use the small claims track, designed to be used without a solicitor, via Money Claim Online. Scotland and Northern Ireland have their own equivalent procedures with different limits.

How can I avoid customers not paying?

Take a deposit, use staged payments on larger jobs, agree payment terms in writing before starting, and invoice promptly and clearly. Reducing how exposed you are at any point is the best protection.

Tool Talk gives general guidance to help you run your business — it isn't formal legal, tax or financial advice. For anything serious or specific to your situation, speak to a qualified professional.

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