Every freelancer eventually faces a client who does not pay. Most handle it badly — either too passive (send a few emails, give up) or too aggressive (legal threats on day 31, destroy the relationship).
Here is the escalation ladder that actually works.
Before you start: check your paperwork
Your leverage depends on what you agreed upfront. If you have:
- A signed contract with payment terms ✅ strong position
- An email trail confirming scope and price ✅ reasonable position
- A verbal agreement only ❌ harder, but not hopeless
Stage 1: Days 1-7 overdue — assume admin error
Most late payments at this stage are genuine oversights. Someone is on holiday. Invoice went to spam. Finance team has a queue.
Message: friendly, specific, assume good faith. Include invoice number, amount, due date. One message.
Stage 2: Days 8-14 — escalate internally
If no response, try a different contact. CC the director if you have been dealing with a junior. Phone is better than email at this stage.
Message: same information, firmer tone. Mention you will need to pause work if unresolved (only say this if you mean it).
Stage 3: Days 15-30 — statutory interest notice
Under the Late Payment of Commercial Debts Act 1998, interest accrues automatically on overdue B2B invoices. You do not need it in your contract. It is the law.
Rate: Bank of England base rate + 8%. On a £2,000 invoice, that is roughly 80p/day right now.
Send a formal notice stating the interest is accruing. This is a significant step — it signals you know your rights and are prepared to use them. Most clients pay here.
Calculate what you are owed: landolio.com/tools/late-payment-interest-calculator
Stage 4: Days 31-60 — letter before action
This is the formal precursor to small claims. It states the amount owed (including interest and debt recovery costs), gives a final deadline (usually 7 days), and states your intention to pursue legal action.
Debt recovery costs: £40 for invoices under £1,000, £70 for £1,000-£9,999, £100 for £10,000+. These are also statutory — you can add them without going to court.
Stage 5: Small claims court
For amounts under £10,000, the process is online and does not require a solicitor. Filing fee: £35-£455 depending on amount. You can claim this back if you win.
Most clients pay before it gets here. The letter before action is usually the turning point.
The templates
All four letters (reminder, escalation, statutory interest notice, letter before action) are in the Getting Paid Toolkit (£19). Worth having before you need them.
What stage have you had to escalate to? Did you recover the money?
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