# The 7-step late payment sequence From "just a nudge" to "small claims ready". Every step has an email, a short DM version, the timing, and tone notes. Copy, fill the [BRACKETS], send. > **Not legal advice.** These are templates and general information. Late-payment rights, interest, fees and court rules depend on your country, state and contract. Check your local rules, and talk to a lawyer or your local small-business advice service before Step 6. Last verified: October 2026. --- ## How to use it - **Day 0 = the invoice due date.** Timings are counted from there. On Net 30 terms, Step 1 lands about a month after you invoiced. - **Most invoices get paid at Step 1 or 2.** Most late payments come from a forgotten email, an approval stuck with someone, or a missing PO number. Treat it like admin, not war, until Step 3. - **Escalate in writing, on schedule, every time.** Clients learn fast which freelancers chase. Being predictable is the strategy. - **Only threaten what you will do and are allowed to do.** If your contract has no late fee, don't invent one. Use the rights your contract or local law actually gives you (see "Know your rights" at the bottom). - **Keep the thread.** Reply in the same email thread each time so the history is visible to everyone, including a judge if it ever gets that far. - **Add a second person** from Step 2 onwards: accounts payable, finance, or the founder. CC them, don't go around your contact. ### Bonus Step 0: courtesy heads-up (Day −3) Sent before the due date. It catches about-to-be-late invoices while there's still time to fix PO numbers and approvals. **Email** — Subject: `Invoice [#] due [DATE]` > Hi [NAME], quick heads-up that invoice [#] for [AMOUNT] is due on [DATE]. I've attached it again here for convenience. If anything is needed on your side to process it (PO number, vendor form, different billing contact), just let me know and I'll sort it today. Thanks! **DM:** "Hi [NAME], quick heads-up: invoice [#] ([AMOUNT]) is due [DATE]. Anything you need from me to process it?" --- ## Step 1 — Friendly reminder (Day +1 to +3) **Goal:** Make paying the easiest thing to do today. Assume good faith. **Tone:** Warm, short, zero blame. One link to pay. **Email** — Subject: `Invoice [#] — friendly reminder` > Hi [NAME], > > Hope the week's going well. Just a friendly reminder that invoice [#] for [AMOUNT] was due on [DATE]. I've attached it again, and you can pay here: [PAYMENT LINK]. > > If it's already on its way, thank you, and please ignore this. > > Best, > [YOUR NAME] **DM:** "Hi [NAME], hope all's good! Invoice [#] ([AMOUNT]) was due [DATE]. Here's the link in case it slipped: [LINK]. Thanks!" **Tone notes:** No "per my last email". No guilt. Include the invoice and the link every time, because people pay from their phones. --- ## Step 2 — Firm follow-up (Day +7) **Goal:** Get a date. Find out what's blocking payment. **Tone:** Polite and direct. Ask one question that forces a specific answer. **Email** — Subject: `Invoice [#] — now 7 days overdue` > Hi [NAME], > > Following up on invoice [#] for [AMOUNT], due [DATE] and now 7 days overdue. > > Could you let me know the date the payment will be made? If something is holding it up (approval, PO, a question about the work), tell me and I'll help fix it. > > I've CC'd [ACCOUNTS EMAIL] in case this sits with your finance team. > > Pay here: [PAYMENT LINK] > > Thanks, > [YOUR NAME] **DM:** "Hi [NAME], invoice [#] is now a week overdue. Could you tell me the date it'll be paid? If something's blocking it, tell me and I'll help sort it." **Tone notes:** The key line is "the date the payment will be made". A date is a commitment, and "soon" isn't. If they give a date, reply "Perfect, I'll look out for it on [DATE]" and set a reminder for the day after. --- ## Step 3 — Final notice before consequences (Day +14) **Goal:** Make the consequences clear, in writing, before they happen. **Tone:** Calm, neutral, factual. No emotion and no exclamation marks. **Email** — Subject: `Final notice: invoice [#] — [AMOUNT] overdue` > Hi [NAME], > > Invoice [#] for [AMOUNT] is now 14 days overdue. I haven't received a payment date yet. > > As set out in our agreement ([CLAUSE / SECTION]): > - Work on [PROJECT] will pause from [DATE, e.g. 3 business days from now] if payment hasn't been received. > - [If your contract or local law allows it] A late fee of [X] / interest at [RATE] applies to overdue balances from [DATE]. > > I'd much rather keep going. Payment by [DATE] keeps everything on schedule: [PAYMENT LINK]. > > If there's an issue with the invoice or the work, reply today and let's resolve it. > > Regards, > [YOUR NAME] **DM:** "Hi [NAME], invoice [#] is 14 days overdue with no payment date. Per our agreement, work pauses on [DATE] if it's still open. I'd rather keep going, so payment link: [LINK]." **Tone notes:** Quote your contract. If your contract has no pause clause or late fee, remove those bullets and say "I'll need to pause new work on the account until this is resolved," which is your call to make as a business. --- ## Step 4 — Pause work (Day +17, or the date you named) **Goal:** Do exactly what you said. This is where most freelancers get paid. Paused work costs the client momentum, and late-payment emails don't. **Tone:** Matter-of-fact. Not punitive. Leave the door open. **Email** — Subject: `Work on [PROJECT] paused — invoice [#]` > Hi [NAME], > > As mentioned on [DATE OF STEP 3], I've paused work on [PROJECT] today because invoice [#] for [AMOUNT] is still unpaid ([N] days overdue). > > What this means: > - No new deliverables or changes until the balance is cleared. > - [Final files / admin access / source files] stay with me until payment, as set out in [CLAUSE]. > - Your project slot is held until [DATE]. After that I may need to reschedule it after other client work. > > Once payment lands, I'll restart within [1 business day]. Pay here: [PAYMENT LINK]. > > Regards, > [YOUR NAME] **DM:** "Hi [NAME], as flagged on [DATE], I've paused work on [PROJECT] until invoice [#] is paid. I'll restart within a day of payment. Link: [LINK]." **Tone notes:** - **Pause, don't sabotage.** Don't take down a live website, delete files, or lock the client out of accounts they own unless your contract clearly says you can. That can turn you into the one in the wrong. Withholding *new* work and *untransferred* deliverables is the clean move, especially if your contract says IP transfers on full payment (see the clause library). - If you host something for them, check your contract and local rules before switching anything off. Give written notice first. --- ## Step 5 — Late fee / interest notice (Day +21) **Goal:** Put a growing number on the debt, but only one you're entitled to. **Tone:** Formal, short, numbers-first. **Email** — Subject: `Updated statement: invoice [#] incl. late charges` > Hi [NAME], > > Invoice [#] for [AMOUNT] is now [N] days overdue. Under [our agreement, section X / the applicable late-payment law], the following now applies: > > | Item | Amount | > |---|---| > | Original invoice [#] | [AMOUNT] | > | Late fee / interest ([RATE], from [DATE] to [DATE]) | [AMOUNT] | > | [Fixed recovery compensation, if applicable in your jurisdiction] | [AMOUNT] | > | **Total now due** | **[TOTAL]** | > > Interest continues to accrue at [RATE] until paid. I've attached an updated statement. > > If the original amount of [AMOUNT] is paid by [DATE, 7 days from now], I'll waive the late charges. [Optional, recommended: it gives them an easy way out.] > > Pay here: [PAYMENT LINK] > > Regards, > [YOUR NAME] **DM:** "Hi [NAME], invoice [#] is [N] days overdue, so late charges now apply per our agreement. I've emailed an updated statement. If [AMOUNT] is paid by [DATE], I'll waive them." **Tone notes:** The waiver offer works. It gives your contact a "win" to bring to their finance team. Keep a note of exactly how you calculated interest. See "Know your rights" for the UK/EU rules. --- ## Step 6 — Formal letter / letter before action (Day +30 to +35) **Goal:** A formal written demand. It's often the step that gets payment, and in many places it's a required step before going to court. **Tone:** Formal. Use the client's legal company name and registered address. Send by email AND by post or another trackable method. **Email/letter** — Subject: `Formal demand for payment: [AMOUNT] — [YOUR BUSINESS] v [CLIENT LEGAL NAME]` > [DATE] > > To: [CLIENT LEGAL NAME], [REGISTERED ADDRESS] > Attn: [NAME, TITLE] > > **Formal demand for payment: invoice [#]** > > We provided [SERVICES] to you under our agreement dated [DATE] ("the Agreement"). Invoice [#] for [AMOUNT] was issued on [DATE] and was due on [DATE]. Despite reminders on [DATES], it remains unpaid. > > The total now due is [TOTAL], made up of: > - Principal: [AMOUNT] > - [Interest / late fee under clause X or applicable law]: [AMOUNT] > - [Fixed compensation / recovery costs, if applicable]: [AMOUNT] > > Please pay [TOTAL] by [DATE — in England & Wales, if the client is an individual or sole trader, allow at least 30 days and follow the Pre-Action Protocol for Debt Claims; elsewhere 14 days is common] to: [PAYMENT DETAILS]. > > If you dispute any part of this amount, please write to us by that date explaining why, with any supporting documents. > > If we do not receive payment or a response by that date, we intend to [start a claim in the small claims court / refer the debt to a collection agency] without further notice. That may increase the amount you owe through court fees and costs where the law allows. > > Copies of the Agreement, invoice [#] and our correspondence are enclosed. > > [YOUR NAME] > [YOUR BUSINESS, ADDRESS, EMAIL] **DM (to your contact, heads-up only):** "Hi [NAME], I've had to send a formal payment demand for invoice [#] to [COMPANY] today. I'd still much rather sort this between us, so if it's paid by [DATE] it all goes away." **Tone notes:** No insults, threats you won't carry out, or public posts about the client. In some places public shaming can expose *you* to legal claims. Facts, dates, amounts, next step. --- ## Step 7 — Small claims / collections prep (Day +45 to +60) **Goal:** Be ready to file, or hand it off. Often the client pays once they see you're ready. **Prep checklist** (gather these in one folder): - [ ] Signed contract / accepted proposal / email where they agreed scope and price - [ ] Every invoice, with dates sent - [ ] Proof of delivery (files sent, launch date, approval emails, "looks great!" messages) - [ ] All reminders (Steps 1–6), with dates - [ ] Any response or excuse they gave, and any partial payments - [ ] Interest/fee calculation, with the clause or law you relied on - [ ] Client's **legal** name and registered address (check the company register in your country) - [ ] Decision: small claims (you do it, usually small filing fee) vs collection agency (they take a commission) vs lawyer (larger amounts) **Final email** — Subject: `Next step on invoice [#]` > Hi [NAME], > > I haven't received payment or a response to my letter of [DATE]. On [DATE, 7 days from now] I will file a claim for [TOTAL] [in small claims court / with (agency name)]. > > I'd still prefer to resolve this directly. If a payment plan would help, I'm open to [e.g. 2 instalments, first one by DATE], confirmed in writing. > > [YOUR NAME] **DM:** "Hi [NAME], last message before I file a claim for invoice [#] on [DATE]. Open to a payment plan if that helps. Just reply." **Tone notes:** Offering a payment plan at the last step gets more money back than holding out for 100% on day one. Get any plan in writing, with dates, and state that the full balance is due at once if an instalment is missed. --- ## Know your rights (summary, check your local rules) Verified October 2026. Laws change, so confirm on the official source before relying on any of this. | Where | What exists | Key points | |---|---|---| | **UK** (B2B) | Late Payment of Commercial Debts (Interest) Act 1998 | You can claim statutory interest at **8% above the Bank of England base rate**, plus fixed compensation of **£40** (debt under £1,000), **£70** (£1,000–£9,999.99) or **£100** (£10,000+), plus reasonable recovery costs above that. Applies business-to-business. Optional, so you choose whether to claim. If no payment date was agreed, payment is late 30 days after the client gets the invoice or the service, whichever is later. | | **England & Wales** | Small claims track / Money Claim Online | Small claims track usually covers claims of **£10,000 or less**. Money Claim Online is the government's online service for fixed-amount money claims. If the client is an **individual or sole trader**, the Pre-Action Protocol for Debt Claims applies: a letter before claim with specific enclosures and **30 days** to respond. | | **EU** (B2B) | Late Payment Directive 2011/7/EU (implemented in each country's law) | Default B2B payment term 30 days if none agreed; contractual terms over 60 days are restricted unless expressly agreed and not grossly unfair. Statutory interest of at least **8 percentage points above the ECB reference rate**, plus a **minimum €40** fixed compensation for recovery costs. A proposed regulation to replace it (with a firm 30-day cap) was still in the legislative process as of the latest sources we found, so check whether it has passed. | | **US — New York State & NYC** | Freelance Isn't Free Act (statewide since 2024; NYC since 2017) | Contracts worth **$800+** (alone or combined over 120 days) need a written contract. Payment is due by the contract date or within **30 days** of completion. Remedies can include **double damages** for late or non-payment. NYC freelancers can file with the Office of Labor Standards. | | **US — California** | Freelance Worker Protection Act (SB 988, effective Jan 1, 2025) | Covers certain professional services (e.g. marketing, design, writing, video, photography) of **$250+** (alone or over 120 days). Written contract required. Pay by the contract date or within **30 days** of completion. Remedies include **double the unpaid amount** for late payment and **$1,000** if a written contract is refused. Los Angeles also has its own ordinance. | | **US — Illinois** | Freelance Worker Protection Act (effective July 1, 2024) | Applies at **$500+** (alone or over 120 days). Written contract required; payment due no later than **30 days** after services are provided if no date is set. | | **US — other cities** | Local ordinances | Seattle, Columbus, Minneapolis and Los Angeles have their own freelancer protections. Check your city. | | **US — late fees in general** | State contract and usury laws | No single federal rule. A late fee or interest generally needs to be **in your contract** and reasonable. Some states cap interest rates. Small-claims limits and filing fees vary by state. Check your state court's website. | **Sources** (verified October 2026): - UK statutory interest & fixed compensation: [gov.uk late commercial payments guidance](https://www.gov.uk/late-commercial-payments-interest-debt-recovery), [Wikipedia summary of the 1998 Act](https://en.wikipedia.org/wiki/Late_Payment_of_Commercial_Debts_(Interest)_Act_1998) - England & Wales small claims / Money Claim Online: [Citizens Advice](https://www.citizensadvice.org.uk/wales/law-and-courts/legal-system/small-claims/making-a-small-claim-in-wales), [MoneySavingExpert](https://www.moneysavingexpert.com/reclaim/small-claims-court/) - Pre-Action Protocol for Debt Claims: [TWM Solicitors summary](https://twmsolicitors.com/our-services/debt-recovery/debt-recovery-pre-action-protocol-for-debt-claims/) - EU directive & proposed regulation: [EU public buyers community](https://public-buyers-community.ec.europa.eu/resources/proposal-regulation-repealing-current-late-payment-directive), [PwC Legal on the proposal](https://legal.pwc.de/en/news/articles/the-eu-s-late-payments-regulation-proposal-key-points-and-problems) - New York: [Hughes Hubbard on NYC FIFA](https://www.hugheshubbard.com/news/nycs-freelance-isnt-free-act), [Hinshaw on the NY State act](https://www.hinshawlaw.com/en/insights/blogs/employment-law-observer/what-new-yorks-freelance-isnt-free-act-means-for-employers) - California: [Fisher Phillips on SB 988](https://www.fisherphillips.com/en/insights/insights/new-california-law-expands-protections-freelance-workers-what-employers-must-know-5-steps-to-comply), [Littler on LA ordinance](https://www.littler.com/news-analysis/asap/los-angeles-updates-freelance-worker-protections-ordinance) - Illinois: [Jackson Lewis](https://www.jacksonlewis.com/insights/illinois-enacts-freelance-worker-protection-act), [Illinois.gov notice](https://www2.illinois.gov/IISNews/30201-Freelance_Worker_Protection_Act_Takes_Effect.pdf) --- ## Let AI write the right message Use `skills/payment-chaser/` (Claude skill) or `skills/payment-chaser/PROMPT.md` (any AI). Give it the invoice details, the days overdue and what's happened so far, and it picks the right step and writes the email + DM in your voice. --- **Made by Dan Shipped — @danshipped.** Templates and general information only, not legal advice. Check your local rules.