Second letter chasing payment

  • Quick and easy to fill in
  • Chase multiple invoices at once
  • Guidance on what interest you can demand

This second letter chasing payment is suitable for use to try and prompt a payment from someone who owes your business money.

It can form a useful part of your business's process for debt collection and assumes that you have already used First letter chasing payment as an initial step.

This second letter chasing payment acts as a firm reminder to whoever owes you money, includes interest, adds to your paper trail showing that you have made sensible efforts to recover what you are owed and gives fair warning that you are prepared to escalate things if payment is not made.

Final letter chasing payment completes the process, leaving you positioned to take more serious action if you want to.

You can also purchase this letter as part of the Debt collection toolkit.

Q&A

  • When should I use this document?

    You can complete and send this second letter chasing payment to a person or another business that owes your business money.

    If your invoice(s) and the First letter chasing payment have not had the desired effect, this second letter is the next step in chasing the debt.

    It can be used to chase multiple invoices at once and makes it clear to the recipient that you are serious about getting paid.

  • What does this document cover?

    This second letter chasing payment covers the details of the debt that you are owed, including clear reference to the unpaid invoice or invoices on which it is based. You'll need copies of the invoices to hand in order to fill in the questionnaire and generate the letter – it is important that the details are correct.

    It also includes details of any interest and other sums that you might be entitled to claim on top of the unpaid sums. If you agreed that interest would be charged on late payments (eg if it says so in your terms and conditions), or if the money is owed by another business, you can charge interest. In the latter situation, you can also charge a one-off sum to compensate you for your time spent chasing the debt.

    This letter includes appropriate warnings that you intend to rely on these rights.

  • Why do I need this document?

    This second letter to chase overdue payments is a key part of your business's debt collection strategy.

    This second letter elaborates on the first simple demand and shows the person who owes your business money that you are not just sending them endless identical chasers with no real consequences if they choose to ignore you. Ideally this letter will prompt them to pay up. However, if it does not, this second letter acts as a helpful part of your paper trail, showing you are taking reasonable action in pursuing them.

    If you end up taking more serious action eg taking them to court, this letter is further great evidence of a serious, measured approach and that the other side had ample warning to pay up.

  • Where can I find out more?

    For information about the various different steps you can take to help ensure prompt payments and support your cashflow, see Chasing payments and enforcement.

    See First letter chasing payment for the correspondence that precedes this document, and Final letter chasing payment for the last step in the process before you move on to more serious enforcement methods if you wish.

    For a suggested timeline to encourage good payment practices, see Debt collection timeline.

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