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Build escalating overdue-invoice chase letters, from a polite nudge to a final notice, with the right tone for how late the payment is.
This builder writes the chase letter for an unpaid invoice at the right point on the collections escalation ladder — courtesy reminder, first chase, second chase, firm demand, final notice — choosing the rung from the whole days between the due date and the day you send it. It fills in the invoice reference, the amount, a dated payment deadline and, if you want it, simple interest on the overdue balance at actual/365. Optional paragraphs cite the actual statutory footing: the UK Late Payment of Commercial Debts (Interest) Act 1998, EU Directive 2011/7/EU, or the MSMED Act 2006 for registered Indian MSME suppliers.
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The letter hardens in fixed steps at 7, 30 and 60 days past due instead of by guesswork.
Quotes the UK 1998 Act, EU Directive 2011/7/EU or the Indian MSMED Act rather than vague legal-sounding wording.
Every chase past the first one names a specific calendar date for payment.
Send the first reminder the day after the due date passes, while the amount is still small in the client's mind. Standard practice is then to escalate at roughly 7 days, 30 days and 60 days overdue, with each letter naming a firmer consequence.
Usually yes, either under your contract's late-fee clause or under statute. UK business-to-business debts carry statutory interest at 8 percentage points above the Bank of England base rate plus fixed compensation of £40 to £100; EU Directive 2011/7/EU sets at least 8 points above the ECB reference rate plus a €40 minimum recovery cost.
It should identify the invoice and amount, confirm that earlier reminders went unanswered, give one clear final date for payment, and state exactly what happens next — referral to a recovery agent or court proceedings. Keep it factual; threats you do not intend to carry out weaken the letter.
Where the supplier is a registered MSME, sections 15 and 16 of the MSMED Act 2006 require payment within 45 days of acceptance of goods or services, after which compound interest accrues monthly at three times the RBI notified bank rate. For other suppliers the contract terms govern, so confirm your position with a professional before relying on it.