Letter Before Action and Payment Reminder Templates

StageOverdue reminderA courteous reminder that the invoice is overdue.Second reminderAsks for payment or contact within 7 days; can include statutory interest and fixed sum compensation.Final reminder before formal action7 days to pay, then a letter before action (company) or a Letter of Claim (sole trader, individual).Letter before action / Letter of ClaimCompany: letter before action, 14 days. Sole trader or individual: Letter of Claim under the Pre-Action Protocol for Debt Claims, 30 days, with a statement of account.

Your businessBusiness nameAddressCompany registration number (Companies House) Optional: sole traders do not have one.

EmailPhone

IBAN for payment (optional)

Your customerCustomer nameCustomer address

A company or LLPA sole traderA private individual (consumer)

Unpaid invoice

Invoice numberAmount outstanding (£)

Invoice dateDue date

Goods or services supplied (optional)

Tone

FriendlyNeutralFirm

Claim statutory interest and fixed sum compensationBusiness customers only (sole traders included): Bank Rate + 8% and £40, £70 or £100 (Late Payment Act 1998). If unticked, the final letters reserve your right to claim them.

Date of the letter

Preview

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From reminder to letter before action

Most late payments are settled after a polite reminder. If the invoice stays unpaid, a second reminder gives 7 days to pay or get in touch, and a final reminder announces the formal letter. All the letters are written in your name: Le Frac does not collect debts on your behalf.

For a business customer (sole trader included), you can add statutory interest at 8% above Bank Rate and fixed sum compensation of £40, £70 or £100 (Late Payment of Commercial Debts (Interest) Act 1998). For a consumer, the letters never mention them: the Act only covers contracts between businesses.

Before going to court, you must send a final letter. To a company or an LLP, this is a letter before action: under the Practice Direction on Pre-Action Conduct, the customer should have a reasonable time to reply, 14 days in a simple case.

To a sole trader or a private individual, the Pre-Action Protocol for Debt Claims applies: a Letter of Claim with an up-to-date statement of account, the Information Sheet and Reply Form and a Financial Statement, sent by post (email as well if you wish; email alone only if the debtor explicitly asked for it). The debtor has 30 days to reply.

Overdue reminder: a courteous note that the invoice has not been paid, in the tone of your choice (friendly, neutral, firm).
Second reminder and final reminder: 7 days to pay, with statutory interest and fixed sum compensation if you claim them.
Letter before action or Letter of Claim: the last step before a claim, for example through Money Claim Online (claims up to £100,000).
These rules are those of England and Wales. Scotland and Northern Ireland have their own court procedures.
Template for information only, not legal advice: read the letter and adapt it before sending.

Official sources

Rules checked on 20 October 2026. Free tool for information only: it is not legal or tax advice. The rules are checked against the official sources listed on this page; check your own situation before acting.

Frequently asked questions

What is the difference between a letter before action and a Letter of Claim?

A letter before action is the final letter to a company before a claim; it usually gives 14 days. A Letter of Claim is the letter required by the Pre-Action Protocol for Debt Claims when the debtor is an individual or a sole trader: it gives 30 days and must come with a statement of account, the Information Sheet, the Reply Form and a Financial Statement.

Can I send the Letter of Claim by email only?

Only if the debtor has explicitly asked to receive it by email; a clause in your terms and conditions is not enough. Otherwise post it, on the date of the letter or the next day, and email it as well if you wish.

Can I add interest and fixed sum compensation?

Yes for business customers, sole traders included: statutory interest at Bank Rate + 8% and £40, £70 or £100 per invoice. Never for a consumer.

What happens if the customer still does not pay?

You can issue a claim, for example through Money Claim Online for claims up to £100,000. Court fees depend on the amount claimed; keep copies of your reminders and proof that the final letter was sent.

Does Le Frac collect the debt for me?

No. The letters are written in your name and payment goes straight to your account. Le Frac is a tool, not a debt collector.

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Payment reminder and letter before action templates