Updated October 2026 · Fraser Bond
Business · Debt recovery
Recovering business debts
Late PaymentAct interest
Letterbefore action
Courtclaim
Enforcejudgment
In short: Most unpaid business invoices are recovered by firm, organised chasing. If that fails, UK law lets businesses claim statutory interest at 8% above the Bank of England base rate on late B2B payments, plus fixed compensation of £40 to £100 per invoice. The next steps are a letter before action, a county court claim (online for many claims under £100,000), and, if you win and aren't paid, enforcement through High Court Enforcement Officers or other methods. For larger undisputed company debts, a statutory demand can be used. Landlords chasing rent arrears from commercial tenants have additional options.
The process
1
ChaseReminders and calls with clear deadlines.
2
Letter before actionGive a final deadline, usually 14 days for businesses.
3
Issue a claimMoney Claim Online or via a solicitor.
4
JudgmentIf undefended, default judgment.
5
EnforceHCEOs, attachment of earnings, charging orders, third-party debt orders.
Late payment interest
Statutory interest–
Fixed compensation–
Uses the reference base rate for the relevant six-month period. Check the current rate.
Frequently asked questions
Can I charge interest on late invoices?
Yes, under the Late Payment of Commercial Debts (Interest) Act 1998.
What about commercial rent arrears?
Landlords may use CRAR, forfeiture or court action.
Commercial landlord with arrears?
Our management service includes rent collection and arrears handling.
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