Unpaid Invoices

What Are Unpaid Invoices?

An unpaid invoice occurs when a client or customer fails to pay for goods or services within the agreed timeframe. While occasional delays are common, persistent non-payment can harm your business. Legal recourse becomes necessary when payment demands are ignored or disputes over the invoice remain unresolved.

Legal Framework for Recovering Unpaid Invoices

In the UK, businesses have legal tools to recover unpaid invoices, including:

• The Late Payment of Commercial Debts (Interest) Act 1998: Allows businesses to charge interest on overdue payments and claim compensation for recovery costs.
• The Limitation Act 1980: Sets a six-year time limit for bringing legal action to recover unpaid invoices.
• Small Claims Process: For disputes involving smaller sums, typically under £10,000.

Steps to Recover Unpaid Invoices

1. Issue a Payment Reminder: Send a polite but firm reminder to the client, outlining the overdue amount and payment terms.
2. Send a Formal Letter Before Action (LBA): If the reminder is ignored, send a formal LBA detailing the debt, payment deadline, and potential legal action.
3. Engage Legal Experts: Seek assistance from solicitors to initiate formal recovery proceedings if the debt remains unpaid.
4. Pursue Court Action: File a claim in the appropriate court to secure a judgment for the unpaid amount, plus interest and costs.

Interest and Compensation on Unpaid Invoices

Under UK law, businesses can claim statutory interest of 8% above the Bank of England base rate on overdue payments. Additionally, you may recover fixed compensation for recovery costs, ranging from £40 to £100, depending on the invoice amount.

Why Choose HPA Solicitors Ltd?

Recovering unpaid invoices requires a balanced approach that preserves business relationships while asserting your rights. At HPA Solicitors Ltd, we provide:

• Expert Legal Guidance: Our team specialises in debt recovery and ensures compliance with all legal requirements.
• Tailored Strategies: We adapt our approach to suit the complexity of your case, from negotiation to litigation.
• Cost-Effective Solutions: Our services aim to minimize your financial burden while maximizing recovery outcomes.

Preventing Future Unpaid Invoices

Taking proactive measures can help avoid unpaid invoices in the future, such as:

• Drafting clear payment terms in contracts.
• Issuing invoices promptly with clear due dates.
• Regularly following up on overdue payments.

Contact HPA Solicitors Ltd for Expert Assistance

Don’t let unpaid invoices hinder your business growth. Contact HPA Solicitors Ltd for professional support in recovering overdue payments. Our legal experts are committed to resolving your case efficiently, ensuring you receive the compensation you deserve. Reach out today for a no-obligation consultation.