How to Chase Late Payments as a Tradesperson

Late payments are one of the biggest headaches in the trades. You've done the work, you've sent the invoice, and now you're waiting. And waiting. And chasing. And still waiting.

You're not alone. Research from January 2026 found that 68% of UK tradespeople are currently chasing at least one late payment, with the average amount owed sitting at over £2,000. Separate research by Direct Line found that the average tradesperson is chasing a staggering £6,000 in unpaid invoices at any given time.

That's not just frustrating — it's money you've already earned being kept from you. It affects your ability to buy materials, pay your own bills, and run your business.

This guide covers practical strategies to prevent late payments, chase them effectively when they happen, and know your legal options when a customer simply won't pay.

Prevention Is Better Than Chasing

The best late payment strategy is to avoid them in the first place. Here's how to stack the odds in your favour before you even pick up a tool.

1. Agree Payment Terms Before Starting Work

Never start a job without agreeing when and how you'll be paid. This conversation should happen during the quoting stage, not after the work is done.

Put it in writing — even a simple text or email confirming:

• The total cost (or your day rate / hourly rate)
• When payment is due (on completion, within 14 days, etc.)
• How they can pay (bank transfer, card, cash)
• Whether you require a deposit

2. Take Deposits for Larger Jobs

For anything more than a day's work, it's standard practice to ask for a deposit. Common structures include:

• 50% upfront, 50% on completion — the most common for medium jobs
• Staged payments — e.g., 30% upfront, 40% at mid-point, 30% on completion (for larger projects)
• Materials upfront, labour on completion — ensures you're never out of pocket for supplies

Deposits serve two purposes: they protect your cash flow, and they filter out customers who aren't serious about paying.

3. Invoice Immediately

This is the single most effective thing you can do. The longer you wait to send an invoice, the longer you wait to get paid. Every day between finishing the job and sending the invoice is a day wasted.

Ideally, you should invoice on the same day you complete the work — or even on site, before you leave. This is one of the core reasons YapMate exists: you can dictate your invoice details on your phone straight after finishing a job and send a professional invoice within minutes. No waiting until you get home, no "I'll do it at the weekend."

4. Make It Easy to Pay

Remove every possible barrier to payment:

• Include bank details clearly on every invoice
• Offer multiple payment methods if possible (bank transfer, card)
• Include a payment link if your invoicing tool supports it

If someone has to phone you to ask for your bank details, that's a delay you created.

5. Use Clear, Short Payment Terms

"Payment due within 30 days" is standard in many industries, but for tradespeople, shorter is better:

• Due on completion — for smaller jobs
• Due within 7 days — reasonable for most trade work
• Due within 14 days — the maximum you should consider for domestic clients

The longer your payment terms, the more likely the customer will forget or deprioritise your invoice.

How to Chase Late Payments: A Step-by-Step Approach

Despite your best efforts, some payments will be late. Here's a structured approach to chasing them without damaging customer relationships (or your sanity).

Day 1 Past Due: Friendly Reminder

The day after your payment deadline, send a polite reminder. Most late payments aren't malicious — people simply forget, or the invoice slipped through the cracks.

Template — Friendly Reminder:

Subject: Invoice [number] — Friendly Payment Reminder

Hi [Name],

Just a quick note to let you know that invoice [number] for £[amount] was due on [date]. I appreciate things get busy, so this is just a gentle reminder.

For reference, the invoice was for [brief description of work] at [address].

My bank details are:
[Sort code] | [Account number] | [Account name]

If you've already sent payment, please ignore this — and thanks!

Cheers,
[Your name]

Keep it friendly. No accusatory language. Assume goodwill.

Day 7 Past Due: Firm Follow-Up

If the first reminder didn't work, follow up after a week. This time, be slightly more direct.

Template — Follow-Up:

Subject: Invoice [number] — Payment Now Overdue

Hi [Name],

I'm following up on invoice [number] for £[amount], which was due on [date] and is now [X] days overdue.

I'd appreciate if you could arrange payment at your earliest convenience. If there's an issue with the invoice or the work, please let me know and I'm happy to discuss.

Payment can be made by bank transfer to:
[Sort code] | [Account number] | [Account name]

Thanks,
[Your name]

Day 14 Past Due: Final Notice Before Escalation

If two weeks have passed with no response, it's time to send a more formal notice.

Template — Final Notice:

Subject: Invoice [number] — Final Payment Notice

Dear [Name],

This is a final notice regarding invoice [number] for £[amount], dated [date], which is now [X] days overdue.

I have not received payment or any communication regarding this invoice despite previous reminders sent on [dates].

Under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to charge statutory interest of 8% above the Bank of England base rate on overdue invoices, plus a fixed compensation fee. I would prefer not to exercise this right and would appreciate prompt payment to resolve this matter.

Please arrange payment within 7 days of this notice. If I do not receive payment or hear from you by [date], I will need to consider further action.

Regards,
[Your name]
[Your business name]

Day 30+: Escalation Options

If none of your reminders have worked after a month, you have several options depending on the amount and the situation.

Your Legal Options for Unpaid Invoices

The Late Payment of Commercial Debts (Interest) Act 1998

This legislation is your friend. If your customer is a business (not a private individual for personal work), you have the statutory right to:

Charge interest: 8% per year above the Bank of England base rate, calculated daily from the day after the payment deadline.

Claim compensation: A fixed sum based on the debt amount:

• Up to £999.99: £40
• £1,000 to £9,999.99: £70
• £10,000 or more: £100

Claim reasonable recovery costs: If you've spent money trying to recover the debt (e.g., solicitor's letters), you can add these costs.

Letter Before Action

Before taking formal legal steps, you should send a "Letter Before Action" (LBA). This is a formal letter giving the debtor a final chance to pay (usually 14 days) before you commence legal proceedings.

An LBA often prompts payment because it signals you're serious. Many disputes are resolved at this stage.

Small Claims Court (Money Claim Online)

For debts up to £10,000 in England and Wales, you can use the small claims track. The process is:

1. File a claim online at moneyclaims.service.gov.uk
2. Pay the court fee — ranges from £35 (for claims up to £300) to £455 (for claims up to £10,000)
3. The defendant has 14 days to respond
4. If they don't respond, you can request a default judgment
5. If they dispute it, a hearing may be scheduled

The small claims court is designed to be used without a solicitor. It's straightforward, relatively inexpensive, and often effective — many people pay up as soon as they receive court papers.

Mediation

For disputes where the relationship matters or the facts are contested, mediation can be a good option. A neutral mediator helps both parties reach an agreement. It's cheaper and faster than court, and the success rate is high.

The Small Business Commissioner also offers a free complaints and resolution service for late payment disputes.

Debt Collection Agencies

For commercial debts, you can instruct a debt collection agency. They'll chase the payment on your behalf (usually for a percentage of the recovered amount). This can be effective for larger sums where you don't want to manage the process yourself.

When to Write Off a Bad Debt

Sometimes, despite your best efforts, you won't get paid. It's a painful reality of running a trade business. Consider writing off a debt when:

• The debtor has no assets or has gone into insolvency
• The cost of pursuing the debt exceeds the amount owed
• You've exhausted all reasonable options
• The stress of chasing is affecting your wellbeing or ability to work

If you write off a bad debt, keep records — you can reduce your taxable income by the amount of genuinely irrecoverable debts.

How to Handle Common Excuses

You've heard them all before. Here's how to respond:

"I'll pay you next week"

"Thanks for letting me know. I'll follow up on [specific date] to confirm payment has been made."

Pin down a specific date and follow up on it. Vague promises need concrete deadlines.

"I'm not happy with the work"

"I'm sorry to hear that — can you tell me specifically what the issue is? I'm happy to come back and look at it. In the meantime, the undisputed portion of the invoice is still due for payment."

Genuine complaints should be addressed. But a complaint raised only after you've chased for payment is often a delay tactic. Don't let it derail the payment conversation entirely.

"I never received the invoice"

"No problem — I'll resend it right now. Here it is [attach]. Payment is due within [X] days of today's date."

This is why sending invoices by email (with a read receipt or tracking if possible) is better than paper. It's also why invoicing immediately matters — if you invoice on the day of completion, this excuse has less credibility.

"Money's tight at the moment"

"I understand — can we set up a payment plan? I'm happy to accept [amount] per week/month until the balance is cleared."

Something is better than nothing. A payment plan keeps money flowing and shows you're reasonable. Get it in writing.

Radio silence — no response at all

Move to formal written notices and then legal options. Someone who won't even respond to communications is unlikely to pay without pressure.

Building Good Payment Habits

Long-term, the best way to deal with late payments is to build a business where they rarely happen:

1. Vet your customers — ask around, check reviews, trust your instincts
2. Always get terms in writing — even if it's just a text message
3. Take deposits — especially for new customers or larger jobs
4. Invoice the same day you finish — use tools that make this instant
5. Follow up promptly — don't let overdue invoices drift
6. Keep detailed records — photos of completed work, signed-off job sheets, email confirmations
7. Be professional — clear invoices, clear communication, clear terms

Key Takeaways

• 68% of tradespeople are chasing late payments — it's an industry-wide issue, not just your problem
• Prevention works better than chasing — deposits, clear terms, and immediate invoicing are your best tools
• Follow a structured chase process — friendly reminder → firm follow-up → final notice → legal action
• Know your rights — the Late Payment of Commercial Debts Act gives you statutory interest and compensation
• Small claims court is accessible — you don't need a solicitor for claims up to £10,000
• Sometimes you have to write off — but keep records for tax purposes

Late payments will never disappear entirely, but with the right systems in place, you can minimise them and deal with them efficiently when they do occur.

The fastest way to reduce late payments? Don't delay your invoices. Try YapMate and send professional invoices from your phone the moment the job's done.