Final letter chasing payment

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

This final letter chasing payment is a suitable last step for you to chase a debt due and owing to your business before you look at taking more serious enforcement action to recover the money owed.

It acts as both a firm reminder to your debtor and adds to your paper trail to show you are making proper efforts to encourage payment. It also gives fair warning of the potential consequences of non-payment.

This last letter chasing payment makes it clear to the recipient that they can expect more serious action from you if they do not pay. It should therefore not be the first letter you send – you can use Initial letter chasing payment and Second letter chasing payment to gradually escalate your debt recovery before you use this one.

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

Q&A

  • When should I use this document?

    You can send this final letter chasing payment to any other business or person that owes money to your business. It assumes that you have already chased them for the debt and that they have not paid it all. This letter should not be your first contact as soon as someone is late paying an invoice.

    It is designed to be the last chasing letter you send before you take more serious action if you think it will be worth doing so. Bear in mind if the debt is small and the likelihood of payment minimal, it may not be in your business's best interests to spend too much more time and resources attempting to get payment.

  • What does this document cover?

    This final letter chasing payment includes the details of the debt that you are chasing. Make sure you have copies of the invoices on which the debt is based, as you will need them to fill in those details. It is important to be clear about exactly what is owed, when it was payable and to what the debt relates.

    The letter also explains any entitlement to interest and other compensation arising from your costs in chasing the late payment. In some circumstances the law allows these and if they are applicable in your situation, they are included in the final letter with appropriate warnings that you intend to rely on these legal rights.

  • Why do I need this document?

    The final letter chasing payment is an important step in your business's debt collection arrangements.

    It warns the person or business that owes you that you are serious about taking the matter further if they do not pay up, helping to avoid the impression that you will just continue to send letters without any real consequence if they are ignored.

    If the letter is not successful in prompting a payment, you might end up taking further debt recovery action such as starting legal action. If you do, your copy of this letter will stand you in good stead, forming part of the proof that you have taken a serious, reasonable approach to debt collection and that the other side have had plenty of notice and opportunity to pay.

  • Where can I find out more?

    For more guidance on your options when it comes to ensuring prompt payments for your business, see Chasing payments and enforcement.

    For other chasing letters leading up to this final step, see First letter chasing payment and Second letter chasing payment.

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