Overdue invoice reminders to business customers: interest, fixed costs and who must not be chased

Business customers only

The rules above are for late payments between businesses. Consumer debts are regulated differently and are outside this guide. Check which kind of customer each overdue invoice belongs to before anything is drafted.

Interest and costs are your choice

GOV.UK gives statutory interest as 8% plus the Bank of England base rate, which you add by sending a new invoice if you decide to, and a different rate in your contract takes priority. Fixed recovery costs are £40, £70 or £100 by the size of the debt. Whether to claim either is your decision, and a reminder should only mention them in wording you have approved.

Build the do-not-chase list first

The damaging reminder goes to a customer who is disputing the invoice, has part-paid or has paid since the export; a second export on the day you send catches the last. Before any draft, remove invoices in those states, and key accounts you chase personally. Builders of invoice-chasing flows commonly keep drafts for a person to approve.

• Disputed or credit-note pending.
• Part-paid.
• Marked paid, or paid after the export was taken.
• Key account.

A person reads every draft

Check every number in a reminder against the export, by script if you can. Then a named person reads and sends it. The paid job drafts reminders and the do-not-chase list from your export and sends nothing.