We assess whether the debt is legally recoverable, commercially worth pursuing, and whether statutory late-payment interest, fixed compensation and reasonable recovery costs can be added.
✓ Recoverability and enforcement review
✓ Late Payment Act interest and compensation check
✓ Terms, contracts and future protection
Unpaid invoice recovery: what can you actually claim?
Recovering an unpaid invoice is not always just a matter of “sending it to court”. The right approach depends on the type of debtor, the contract terms, the evidence, the amount owed, the likely court track, and whether the debtor has the means to pay.
For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 may allow statutory interest, fixed compensation and reasonable recovery costs to be added. But not every unpaid invoice qualifies, and even a successful court judgment does not automatically mean the money will be recovered.
A free validation helps assess whether the debt is legally recoverable, commercially sensible to pursue, and whether statutory charges or enforcement options may improve the recovery position.
Six key checks before chasing an unpaid invoice
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Does the Late Payment Act apply?
The Late Payment of Commercial Debts (Interest) Act 1998 is mainly relevant to business-to-business debts. If it applies, statutory interest may be claimed at 8% above the Bank of England base rate. The same regime may also allow fixed compensation of £40, £70 or £100 depending on the debt value, plus reasonable recovery costs in appropriate cases.
For many businesses, these statutory sums may still feel too low to act as a real deterrent. That is why prevention matters. Applying the principle of fair and transparent drafting, your business can use clear payment, default and post-default interest clauses to reduce disputes, strengthen recovery, and discourage unpaid invoices before they arise.
Learn more: How better payment terms can help prevent unpaid invoices
Unpaid Invoice Recovery – Free valuation: what you need to prepare
A free unpaid invoice recovery valuation is most useful when the key documents are ready from the start. The purpose is not only to check how much is owed, but to assess whether the invoice is legally recoverable, whether the debtor has a realistic defence, whether statutory charges may apply, and whether recovery action is commercially sensible.
The unpaid invoice itself
The invoice is the starting point for any recovery assessment. It should show the debtor’s name, invoice date, invoice number, amount due, payment deadline, VAT position if applicable, and what goods or services were supplied. A clear unpaid invoice helps confirm the debt value, whether payment is overdue, and whether statutory interest or compensation may be calculated.
The agreement, quotation or contract
Invoice recovery depends on more than the invoice alone. The valuation should include any signed contract, accepted quotation, terms of business, purchase order, booking confirmation, email agreement or message showing what was agreed. This helps establish the price, scope of work, payment terms, cancellation terms, and whether the debtor agreed to the supply before the invoice was issued.
Evidence that the work was completed or goods were supplied
A debtor may dispute an invoice by saying the work was not completed, the goods were not delivered, or the service was not provided to the agreed standard. Useful evidence can include delivery notes, completion records, job sheets, photographs, timesheets, handover messages, signed confirmations, access logs, tracking details, or emails confirming the work was done.
The debtor’s details and status
Unpaid invoice recovery is affected by whether the debtor is a business, sole trader, limited company, partnership or consumer. This matters because the Late Payment of Commercial Debts (Interest) Act 1998 generally concerns business-to-business debts, while consumer debts require a different assessment. Correct debtor details also matter for any formal letter, claim form or enforcement step.
Payment history and reminders already sent
The recovery valuation should include any part-payments, payment promises, previous reminders, statements of account, text messages, emails, WhatsApp messages or admissions that the money is owed. This evidence can help show that the debt is not genuinely disputed, that the debtor knew payment was due, and whether there has been delay, avoidance or broken payment arrangements.
Any complaint, dispute or refusal to pay
Not every unpaid invoice is straightforward. The debtor may allege poor work, damage, delay, cancellation, overcharging, lack of authority, missing documents or non-performance. These issues should be reviewed before recovery action is taken, because a weak or unresolved dispute can affect the chance of success, the likely court track, the time involved and the overall cost-benefit position.
Your terms on interest, late payment and recovery costs
For business debts, it may be possible to claim statutory interest, fixed compensation and reasonable recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998. For consumer debts, any added charges usually need to be checked against the contract wording and consumer fairness rules. Providing your terms helps assess what can properly be claimed and what may be challenged.
Information about the debtor’s ability to pay
A successful unpaid invoice claim does not guarantee recovery. A debtor may have limited means, no obvious assets, dissolved company risk, multiple debts, or may know how to avoid simple enforcement. Any information about trading status, address, assets, employment, property, company position or previous payment behaviour can help assess whether enforcement is likely to be worthwhile.
The amount you want to recover and your commercial objective
Sometimes the best recovery strategy is not simply to issue a claim. The valuation should consider the invoice amount, possible statutory additions, court fees, small claims track cost limits, enforcement risk, time involved and whether settlement is more sensible. The aim is to identify a proportionate recovery route, not to spend more money chasing a debt than the debt is worth.