BoE Base Rate: 3.75% (since 18 March 2026) Invoice finance discount charges are typically base rate + 1.5-3.5%

Unpaid Invoices: Your UK Options 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.

If a UK customer hasn't paid an invoice past its due date, you have five practical options: claim statutory late payment interest (Late Payment of Commercial Debts Act 1998, currently 11.75% APR plus £40 to £100 fixed compensation), send a letter before action, file a statutory demand if the debt is over £750, take the matter to small claims court for under £10,000, or sell the unpaid invoice to a spot factoring provider for immediate cash. The fastest cash recovery route is selective spot factoring, which advances 70 to 90 percent of the invoice value within 24 hours and takes over the chasing entirely.

Last updated: 8 May 2026.

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If a UK customer hasn't paid an invoice past its due date, you have five practical options: claim statutory late payment interest (Late Payment of Commercial Debts Act 1998, currently 11.75% APR plus £40 to £100 fixed compensation), send a letter before action, file a statutory demand if the debt is

Summary

If a UK customer hasn't paid an invoice past its due date, you have five practical options: claim statutory late payment interest (Late Payment of Commercial Debts Act 1998, currently 11.75% APR plus £40 to £100 fixed compensation), send a letter before action, file a statutory demand if the debt is over £750, take the matter to small claims court for under £10,000, or sell the unpaid invoice to a spot factoring provider for immediate cash. The fastest cash recovery route is selective spot factoring, which advances 70 to 90 percent of the invoice value within 24 hours and takes over the chasing entirely.

This Page Covers

unpaid invoices UK: how to chase late payers, claim statutory interest, file statutory demands or small claims, and sell invoices for immediate cash

Not Covered Here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

Provider	Fee from	Min turnover	Why it fits
Hydr	Variable	No min	Spot factoring for individual unpaid invoices, 24-hour cash
Kriya (Allica Bank)	1.5%+	£100k	Selective invoice finance for chosen unpaid invoices
Triver	1.5%+	No min	API-driven instant decisions on unpaid invoices
Bibby Financial Services	0.5%+	£100k	Whole-book factoring with credit control included
Skipton Business Finance	0.5%+	£100k	Bad debt protection bundles for high-risk debtors

Five options when a UK customer won't pay

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

How much late payment interest can I claim in the UK?

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

When to send a letter before action

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Statutory demand vs small claims court for unpaid invoices

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Selling an unpaid invoice for immediate cash

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Detailed unpaid invoice pages

OM

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 8 May 2026

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Unpaid Invoices UK FAQ

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

You have five practical options: (1) charge statutory late payment interest at 11.75% APR plus £40-£100 fixed compensation under the Late Payment of Commercial Debts Act 1998; (2) send a letter before action giving 14 days to pay; (3) file a statutory demand if the debt is over £750; (4) take the matter to small claims court for under £10,000; (5) sell the invoice to a spot factoring provider for immediate cash (70-90% advance within 24 hours).

How long should I wait before chasing an unpaid invoice?

Send a polite payment reminder on the day after the due date. Send a firm reminder at 7 days overdue. Send a formal letter before action at 30 days overdue. Most B2B disputes settle at the letter-before-action stage. If 30 days have passed and you've had no engagement, the customer is unlikely to pay without legal pressure or you selling the debt.

Can I claim interest on a late paid invoice UK?

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998 you can claim statutory interest at 8% above the Bank of England base rate (currently 3.75%, so 11.75% APR), plus a fixed compensation charge of £40 (debt under £1,000), £70 (£1,000-£10,000) or £100 (over £10,000). You can claim this even after the invoice is eventually paid. No court order needed.

Should I sell an unpaid invoice or chase it?

Sell if you need cash within 7 days, the customer has the money to pay (just slowly), the invoice is over £5,000, and the customer relationship is worth preserving. Chase if you have time, the invoice is under £5,000, the customer may dispute the work, or you suspect insolvency. Spot factoring providers like Hydr, Triver and Kriya pay 70-90% within 24 hours and chase the customer themselves.

What if my customer goes into administration?

Stop all credit immediately. Register as a creditor with the appointed administrator (their details are on Companies House). Submit your proof of debt with copies of invoices, contracts and statements. You'll likely receive between 0p and 30p in the pound, paid in 12-36 months. If you have trade credit insurance or sold the invoice to a non-recourse spot factoring provider before the administration filing, you may recover most or all of the value.

Is small claims court worth it for an unpaid invoice UK?

Yes for amounts £500-£10,000 where the customer has the money but is refusing to pay. Court fee is £35-£455 depending on debt size. You can submit online at moneyclaim.gov.uk. Most defendants settle once they receive court papers. If you win and they still don't pay, you can apply for an attachment of earnings, charging order on property, or High Court enforcement officer (£66 fee). Median time to judgment is 6-9 months.