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  Letter Before Action

The last letter before court.

A free letter before action generator for UK businesses. Fill in the invoice details and it drafts the formal demand — statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 calculated in, deadline set, consequences stated. Most debtors pay at this letter; it costs you nothing to send. Your details never leave your browser. Not legal advice.

№ 01 Your business
№ 02 The debtor
№ 03 The invoice

Suing an individual or sole trader? The Pre-Action Protocol for Debt Claims requires 30 days plus prescribed forms — pick 30 and read the FAQ below before sending.

№ 04 Payment instructions (optional)

The letter

[Your business name] [Your address] 26 August 2026 [Debtor business name] [Debtor address] Dear Sirs, LETTER BEFORE ACTION — UNPAID INVOICE [invoice number] We refer to our invoice [invoice number] dated [date] in the sum of £0.00, which fell due for payment on [date]. Despite the invoice being 0 days overdue, payment remains outstanding. Pursuant to the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest has accrued on the debt at 11.75% per annum (the Bank of England reference rate of 3.75% plus 8%), amounting to £0.00 as at the date of this letter and continuing to accrue at £0.00 per day. We are further entitled to fixed compensation of £40.00 under section 5A of the Act. The total sum now due is £40.00. We require payment of this sum in full within 14 days of the date of this letter, that is by 9 September 2026. Payment should be made to the account named on the invoice. If payment is not received by that date, we will commence proceedings against you in the county court without further notice. This may increase your liability to include court fees and further interest, and may affect your credit rating. If you dispute this debt, you must tell us why in writing within the same period. Yours faithfully, [Name] [Your business name]

FAQ

Common
questions

General information about chasing commercial debts in England and Wales — not legal advice. For a disputed or large debt, talk to a solicitor before sending anything.

  • Q1

    What is a letter before action?

    The formal final demand you send before starting court proceedings. Courts expect one under the pre-action conduct rules, and judges can penalise a claimant who sued without warning. In practice it's also the most effective debt-chasing tool there is: a large share of overdue invoices get paid at this letter, because it signals you're genuinely prepared to issue a claim.

  • Q2

    How long do I have to give them to pay?

    Business debtor: 14 days is the accepted standard for a straightforward unpaid invoice. Individual or sole trader debtor: the Pre-Action Protocol for Debt Claims applies — 30 days, and the letter must be accompanied by the prescribed Information Sheet and Reply Form. This generator's letter is drafted for company-to-company debts; for a sole trader, use the 30-day option and attach the protocol forms from gov.uk before sending.

  • Q3

    Can I add interest and compensation to the demand?

    Yes, for business-to-business debts. The Late Payment of Commercial Debts (Interest) Act 1998 grants statutory interest at the Bank of England reference rate plus 8%, plus fixed compensation of £40, £70 or £100 per invoice. The generator calculates both and states them in the letter, together with the daily accrual — the number that tends to concentrate a debtor's mind.

  • Q4

    What if they still don't pay?

    Issue a claim through the online money claims service (gov.uk). Claims under £10,000 go to the small claims track, where court fees start around £35 and you don't need a solicitor. Keep the letter, proof of postage and your invoice records — they're your evidence that you followed pre-action conduct.

  • Q5

    Should I send it by email or post?

    Both. Post the printed letter (first class, keep proof of postage) and send the same text by email the same day. Post makes it formal and evidenceable; email makes sure the right person actually reads it today.

Work out the numbers first

Know what you're owed to the penny.

The late payment calculator shows the statutory interest and compensation on any overdue invoice, with a shorter demand paragraph for a first chaser email.

Late payment calculator