How to get invoices paid faster: a UK late payment guide

Late invoices put pressure on cash flow and take time away from customers. A reliable payment process starts before the invoice is issued, gives the customer a clear route to pay and makes every overdue step easy to evidence.

This guide is for UK businesses selling goods or services to other organisations. It covers practical prevention, reminders, disputes, current late-payment rights, escalation and receipt reconciliation. Legal rights depend on the contract and circumstances, so take professional advice where the amount, dispute or relationship creates significant risk.

How to get invoices paid faster before they fall due

Payment speed often depends on work completed before the due date. A customer can intend to pay on time and still miss the date because the purchase order is absent, the invoice went to the wrong address or the finance team cannot identify who approved the work.

Confirm the commercial details when the customer places the order. Record the correct legal entity, billing address, purchase-order requirement, agreed amount, payment terms and person who can resolve a query. Ask where invoices should be sent and whether a supplier portal or particular file format is required. For ongoing work, check these details periodically because finance contacts and internal processes change.

The invoice should repeat the agreed essentials in one place: a unique invoice number, issue date, due date, customer details, description of the work, amount and currency, tax information where applicable and clear payment instructions. Use a reference that can travel from the invoice into the payment record and bank entry.

Send the invoice as soon as the contractual trigger has occurred. Keep evidence that the goods or services were delivered and that the invoice reached the customer. A delivery record, signed acceptance, email acknowledgement, portal receipt or approved timesheet can resolve a query quickly.

Choose a payment route the customer can complete

The invoice payment methods guide compares manual bank transfer, Pay by Bank links, card links and Direct Debit in detail. For late-payment prevention, the useful question is whether the customer can complete the chosen route without searching for details or asking for help.

Manual bank transfer can suit established business customers. Put controlled bank details and a unique reference on the invoice, then explain how a change of bank details would be verified. This reduces the risk created by an unexpected email that claims payment details have changed.

A one-off Pay by Bank link can carry the customer from an invoice or reminder into a prepared bank payment journey. Wonderful currently lets UK businesses create a payment link, share it with a customer and receive a status after the customer selects a bank, authenticates with it and approves the payment.¹ The amount and reference can be prepared in the request, which reduces manual copying.

Card links can help when the customer expects to use a card, including some international payers. Check fees, card coverage, provider confirmation and payout timing. Direct Debit can suit repeat collections where the customer has given the required instruction and the business can manage notice and collection records. Keep an agreed alternative for customers who cannot use the preferred method.

Use a reminder schedule that gives the customer time to act

A reminder works best when it contains everything needed to resolve the invoice. Include the invoice number, amount, due date, payment route and named contact for questions. Attach the invoice again or link to the accepted supplier portal record.

Set a schedule that reflects the customer and invoice value. A practical starting point is:

1. Send a courteous reminder several working days before the due date, especially for a new customer or a large invoice.
2. Confirm receipt on the due date when the payment has not arrived.
3. Follow up promptly after the due date with the exact amount outstanding and a request for the expected payment date.
4. Escalate to the customer's finance contact and the person who commissioned the work if the agreed date passes.
5. Move to a formal written demand when ordinary contact has failed and the evidence supports the debt.

Keep every message factual. Ask whether the invoice has been received, accepted and scheduled. If the customer gives a payment date, record it and follow up against that commitment. Save replies and call notes beside the invoice record so another authorised person can understand the history.

Deal with invoice disputes early

A payment delay can begin with a genuine disagreement over price, scope, delivery or quality. Ask the customer to identify the disputed item and provide the supporting detail. Compare it with the contract, order, delivery evidence and invoice.

Separate any undisputed amount where the contract and circumstances allow. Give the dispute a named owner, a next action and a response date. A vague under review status leaves both sides without a clear path to resolution.

The Office of the Small Business Commissioner says an accepted invoice becomes late when the agreed payment terms expire. Its current guidance also says statutory charges cannot be applied to an invoice that is legitimately disputed.² A dispute that appears unreasonable or takes an unreasonable time may fall within the Commissioner's support or complaint route, subject to its remit.

Follow a clear overdue invoice sequence

Start by checking your own records. Confirm that the invoice was sent to the correct place, the due date has passed, the amount remains outstanding and no receipt has been left unmatched. Then contact the customer through a known channel.

The first overdue message should make the next step simple. Restate the invoice number, amount and due date. Include the payment route and ask for either payment or a precise explanation of the issue. If the customer says payment has been made, request the date, amount, reference and any provider or bank evidence that helps locate it.

Escalate proportionately. Contact the finance team, the original buyer and an appropriate senior person when earlier commitments pass. A formal demand should set out the debt, contractual basis, payment history, amount claimed and deadline for response. Keep the tone professional and preserve the trading relationship where possible.

Consider external support when direct resolution fails. The Office of the Small Business Commissioner offers free information and guidance. Its formal complaint scheme can investigate some complaints by a small business against a larger private-sector business. The Commissioner defines a small business for this purpose as having fewer than 50 employees, and its published remit excludes construction disputes covered by the Construction Act and complaints against public-sector bodies.² Other disputes may need mediation, sector-specific adjudication, debt recovery support or independent legal advice.

Understand current UK late-payment rights

For business-to-business goods and services, GOV.UK says an agreed payment date must usually be within 60 days. A longer period can be agreed when it is fair to both businesses. Public authorities normally have a 30-day limit. When no payment date has been agreed, payment becomes late 30 days after the customer receives the invoice or the goods or service is delivered, using the later date.³

Statutory interest for a late business-to-business payment is 8% above the Bank of England base rate. A business cannot claim statutory interest when the contract sets a different interest rate. Public-authority contracts cannot use a lower rate. GOV.UK advises sending a new invoice when interest is added.⁴

A supplier can also claim a fixed debt-recovery sum for each late payment: £40 for a debt up to £999.99, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more. GOV.UK also describes a right to claim reasonable recovery costs.⁵ Apply these rights carefully and keep the calculation, contract and correspondence with the invoice record.

Legal action can affect cost, time and the customer relationship. Check the contract and obtain advice before pursuing a disputed or significant debt. The relevant court, limitation and pre-action requirements depend on the claim.

Keep proposed Commercial Payments Bill changes separate

The Commercial Payments Bill reached Report stage in the House of Lords on 15 September 2026.⁶ It remains proposed legislation. The current rights above continue to govern until any new provisions are enacted and brought into force.

The government's Bill overview proposes a maximum 60-day payment term with limited exemptions, mandatory interest at 8% above the Bank of England base rate, a fixed sum for some late or inadequately explained disputes and stronger investigation, adjudication and enforcement powers for the Small Business Commissioner. It also says there would be lead-in and transition periods and that the measures would not apply retrospectively.⁷

Businesses should track the Bill's progress and update contracts, systems and training when final legislation and commencement dates are available. A proposal at Report stage does not change the treatment of today's invoice.

Keep each payment stage clear

A customer saying paid is useful information. Your process still needs evidence from the payment route and receiving account. The payment-stage guide explains the full Pay by Bank journey. For an invoice team, the working sequence is:

Document which event changes an invoice from open to paid. Staff should know how to handle a delayed status, missing bank entry, part payment, combined payment or altered reference. A customer-facing success screen should never be the only record used to close a balance.

Make payment links useful in the chasing process

A Pay by Link guide covers link creation and sharing in more depth. In an overdue process, use a link that belongs to the correct invoice and amount. Include the invoice reference so the resulting payment can be located quickly.

Send the link through a contact route the customer recognises. Explain the business name, amount and invoice beside it. Avoid sending several active links for the same debt unless your process prevents duplicate payment and makes the valid route clear.

With Wonderful's one-off Pay by Bank journey, the customer opens the link, chooses their bank and approves the prepared payment in the banking app.¹ Keep provider status and bank evidence in their proper places. The link shortens the route to authorisation while the final invoice decision follows your documented status and reconciliation controls.

Reconcile the receipt before closing the invoice

Check the receiving account and payment record before marking the debt as cleared. Match the amount, customer, invoice reference, provider transaction identifier and relevant dates. The payment reconciliation guide gives a fuller process for bank entries, provider reports and accounting records.

Part payments need an agreed treatment. Record the amount received, the balance still due and any revised commitment. Combined payments need an allocation across invoices. A payment with a missing or changed reference belongs in an exception queue until the evidence identifies it reliably.

Keep a simple audit trail. The invoice record should show when the invoice was issued, accepted, disputed, chased, paid and reconciled, together with the evidence for each state. This reduces repeated work and gives the business a clearer view of cash still due.

Frequently asked questions

When is a business invoice late in the UK?

Use the agreed due date where one exists. GOV.UK says agreed payment dates must usually be within 60 days for business transactions and 30 days for public authorities. Without an agreed date, payment becomes late 30 days after the customer receives the invoice or receives the goods or service, whichever is later.³

Can I charge interest on a late invoice?

Statutory interest on a qualifying late business-to-business payment is 8% above the Bank of England base rate. A different contractual interest rate can replace the statutory rate for business transactions. Check the contract and current official guidance before adding a charge.⁴

What should I include in an overdue invoice reminder?

Include the invoice number, amount, due date, payment route and a named contact for questions. Attach the invoice or identify its accepted portal record. Ask the customer to confirm the expected payment date or describe the dispute precisely.

Can the Small Business Commissioner recover an invoice for me?

The Commissioner provides free information and support. Its formal complaint scheme can investigate eligible disputes from a small business against a larger private-sector business. Other disputes may be supported or signposted, and some sectors and public bodies use different routes.²

When should I mark an invoice as paid?

Use the rule documented for your payment method and systems. Check the provider status, confirm funds availability through the receiving account or approved process and reconcile the receipt to the invoice before closing the customer balance.

Build a payment process your team can repeat

Faster invoice payment comes from clear terms, prompt issue, a usable payment route and consistent follow-up. Give each invoice one recognisable reference and preserve the evidence from delivery through to receipt.

When payment is late, verify the facts, contact the customer, resolve any genuine dispute and escalate against recorded dates. Apply current legal rights with care. Close the balance when the required payment evidence and reconciliation record agree.

Footnotes

1. Wonderful, current Pay by Bank payment-link journey and plans. Wonderful payment plans.
2. Office of the Small Business Commissioner, current payment, dispute and support guidance. FAQs.
3. GOV.UK, current payment deadlines for late commercial payments. When a payment becomes late.
4. GOV.UK, statutory interest for late commercial payments. Interest on late commercial payments.
5. GOV.UK, fixed sums and reasonable recovery costs. Claim debt recovery costs on late payments.
6. UK Parliament, current Commercial Payments Bill stages. Commercial Payments Bill stages.
7. Department for Business and Trade, proposed reforms and implementation approach. Commercial Payments Bill overview.