A template courteous payment reminder letter for an overdue invoice for goods or services, which sets out clearly the supplier's statutory late-payment rights for commercial debts. Drafted for businesses in England & Wales.
How to use this template - Replace every
[SQUARE-BRACKET]field before use. - This version stays polite but is slightly firmer than a bare first reminder, and spells out the statutory entitlements, useful where an invoice is comfortably past due or a gentle nudge has not worked. - Statutory late-payment rights (business-to-business): under the Late Payment of Commercial Debts (Interest) Act 1998 you can usually claim: - interest at 8% above the Bank of England base rate; and - fixed compensation per invoice: £40 (debt under £1,000), £70 (£1,000–£9,999.99) or £100 (£10,000+); - and reasonable debt-recovery costs above the fixed sum.
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[YOUR COMPANY NAME] [ADDRESS]
[DATE]
[CUSTOMER NAME] [ADDRESS]
Dear [NAME],
Re: Overdue invoice [INVOICE NUMBER] dated [DATE], £[AMOUNT]
We write further to invoice [NUMBER], dated [DATE], for £[AMOUNT] in respect of [DESCRIBE GOODS/SERVICES]. Payment was due on [DUE DATE] and our records show it remains unpaid.
We value your business and would like to resolve this promptly and amicably. Please arrange payment of the outstanding £[AMOUNT] by [DATE].
Payment details:
- Account name: [NAME] · Sort code: [ ] · Account number: [ ]
- Reference: [INVOICE NUMBER]
If you have already paid, thank you, please disregard this letter and let us know the payment date. If there is a genuine query with the invoice, please contact us by [DATE] so we can resolve it.
Please note that, as this is a commercial debt, if it remains unpaid we are entitled under the Late Payment of Commercial Debts (Interest) Act 1998 to claim statutory interest (8% above the Bank of England base rate), fixed compensation of £[40/70/100] for this invoice, and reasonable recovery costs. We would much prefer not to take that step.
We look forward to receiving payment and to continuing to work with you.
Yours sincerely,
_________________________ [NAME], [TITLE] [YOUR COMPANY NAME]
Enc: Copy invoice [NUMBER]
--- This template is a starting point and not legal advice. For advice on recovering debts or enforcing statutory late-payment rights, consult a qualified solicitor. Governing law: England & Wales.