First letter chasing payment
- Quick and easy to fill in
- Chase multiple invoices at once
- Great first step to improve cashflow
This first letter chasing payment is suitable for use as soon as a person or business is late in paying one or more of your invoices.
It is a useful part of any business’s debt collection strategy, acting as both a reminder to whoever owes you money that they need to pay and as the start of a clear paper trail for you in chasing the payment. A paper trail shows you are serious about collecting the debt and is a record of you beginning to sensibly escalate your response if payment is not forthcoming.
This first letter chasing payment is a proportionate initial response that you can follow up and build on as part of your plan to ensure a healthy cashflow.
You can also find this letter as part of the Debt collection toolkit.
Q&A
When should I use this document?
You can use this first letter chasing payment in three different situations, depending on what action you have already taken and how much time has passed:
- You can send a copy promptly when someone is late paying one of your invoices. A few days after the payment date has been missed is perfectly fine. Successful cashflow strategies require you to take control of the situation, and this quick and easy chasing letter is a great start in doing so.
- You can also use this debt-chasing letter if you want to kickstart your debt collection on invoices that have been outstanding for some time.
- If you have not sent an invoice yet, do this first so that the person or business that owes you money is clear on what they owe and what it relates to. If that does not prompt payment, you can then follow up using this letter. See VAT invoice or Non-VAT invoice for legally compliant templates you can use.
What does this document cover?
This first letter chasing payment provides a simple reminder to anyone who has failed to pay one of your invoices on time. It is the first step in a process of escalation, so is designed to be straightforward and polite for those who have overlooked your invoice, simply forgotten to pay you or whose internal accounting systems are perhaps less organised than yours.
You’ll need the unpaid invoices to hand to fill in the first letter chasing payment – it is important that you can be clear about which ones are unpaid, how much they are for and the dates of those invoices. This ensures that the recipient is crystal clear about what you are asking for and why and helps cut down on any unnecessary debate.
Why do I need this document?
This first letter chasing payment is an important part of any cashflow management and debt collection strategy for your business.
The best result is of course if it prompts payment from a forgetful customer or client. If no payment is forthcoming, a copy of this initial chasing letter can serve as part of your records showing a clear pursuit of the debt. If you later need to escalate matters, for example by bringing a court claim, this early correspondence is great evidence that you have taken matters seriously from the outset and been plain about what you are asking for.
Where can I find out more?
For full guidance on steps you can take to ensure prompt payment, see Chasing payments and enforcement.
For the next letters to send if this first letter chasing payment is not successful, see Second letter chasing payment and Final letter chasing payment.
For a suggested timeline to help you chase debts promptly and effectively, see Debt collection timeline.
Related Toolkits
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