Late payment letter templates — 3 free chasing letters

Polite, then firm, then final. Copy the words, fill in the brackets, send.

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Updated 13/10/2026

In shortSend a friendly reminder a few days after the due date, a firm one at about two weeks asking for a payment date, and a final notice at around three weeks. For business customers, the final notice can claim statutory interest (8% plus the Bank of England base rate) and £40 to £100 compensation. All three letters are below to copy or download.
📝 Download all three letters (Word)

Letter 1 — Friendly reminder (a few days overdue)

Subject: Invoice [number] — friendly reminder Dear [customer name], I hope all is well. Just a quick note that invoice [number] for £[amount], for [the work] at [address], was due on [due date] and I don’t seem to have received payment yet. It may simply have slipped through, so I’ve attached a copy. You can pay by bank transfer to: Account name: [account name] Sort code: [00-00-00] Account number: [00000000] Reference: [invoice number] If you’ve already paid, thank you — please ignore this. If there’s a problem with the invoice or the work, just let me know. Kind regards, [Your name] [Business name] · [phone]

Letter 2 — Firm reminder (about two weeks overdue)

Subject: Invoice [number] — now [x] days overdue Dear [customer name], Invoice [number] for £[amount], which was due on [due date], is now [x] days overdue. I sent a reminder on [date of first reminder] but have not yet received payment or a reply. Please pay the full amount by [date — 7 days from today], or let me know by then when payment will be made. If there is a problem with the invoice or the work, please tell me now so we can sort it out. Bank details: Account name: [account name] Sort code: [00-00-00] Account number: [00000000] Reference: [invoice number] Regards, [Your name] [Business name] · [phone]

Letter 3 — Final notice with statutory interest (business customers only)

Subject: Final notice — invoice [number] Dear [customer name], Despite my reminders of [date] and [date], invoice [number] for £[amount], due on [due date], remains unpaid. Please treat this as a final notice. Under the Late Payment of Commercial Debts (Interest) Act 1998 I am entitled to fixed compensation and to statutory interest at 8% above the Bank of England base rate — [11.75]% a year for this debt. As of today the amount due is: Invoice [number]: £[amount] Statutory interest from [due date] to [today] ([x] days at £[daily amount] a day): £[interest] Fixed compensation: £[40 / 70 / 100] Total now due: £[total] Interest continues to build up at £[daily amount] a day until payment is received. Please pay the total by [date — 7 days from today]. If I do not receive payment by then, I will take further steps to recover the debt without further reminders. Bank details: Account name: [account name] Sort code: [00-00-00] Account number: [00000000] Reference: [invoice number] Yours sincerely, [Your name] [Business name] · [phone]

When should I send each letter?

Letter 1 a few days after the due date — most late invoices are forgotten rather than refused, and a friendly nudge settles a lot of them. Letter 2 about two weeks overdue, asking for a specific payment date. Letter 3 about three weeks overdue, as a final notice. Keep a copy of everything you send and when.

Can I use these letters for homeowners?

Letters 1 and 2 work for anyone. Letter 3 claims statutory interest and compensation, which only apply to debts between businesses. For a homeowner, leave out the interest and compensation lines unless your contract with them included a late payment charge.

How do I work out the interest for the final notice?

Use the free late payment interest calculator: enter the amount and the days overdue and it gives the interest, the daily amount and the fixed compensation. For invoices overdue in 2026 the statutory rate is 11.75% a year (8% plus the 3.75% base rate).

What happens after the final notice?

Before you go to court against an individual or a sole trader, you must follow the Pre-Action Protocol for Debt Claims: send a formal Letter of Claim with the information sheet and reply form, and give them 30 days to respond. Against a limited company, a clear letter before action giving 14 days is the usual step. Small claims are handled through the County Court; consider mediation first. Get advice before you start legal action.

Can GraftG send these for me?

Yes. GraftG Pro (£24/month) watches your unpaid invoices and emails polite-to-firm reminders in your name at 1, 7, 14 and 21 days overdue, stopping the moment the invoice is marked paid. Text OUTSTANDING on WhatsApp to see who owes you what.

Frequently asked questions

How do I write a polite debt chasing letter?

Assume it was forgotten: give the invoice number, amount and due date, attach a copy, repeat your bank details, and invite them to tell you if there is a problem. Letter 1 on this page is a ready-made polite reminder you can copy.

What should a final notice letter include?

The invoice number, amount and due date, the dates of your earlier reminders, a clear deadline (7 days is common), the statutory interest and compensation you are claiming if the customer is a business, and what you will do if they do not pay.

🧮 Free toolLate payment interest calculator💬 On GraftGLet GraftG Pro send the reminders for you

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