Letter Before Action Template

Dear Sir

Outstanding Debt: £??

We are disappointed to note that you have failed to pay the following outstanding invoice(s): -

Inv No  Inv date      Due         Amount     Interest Accrued      Compensation due

 xx           xx-xx-xx  xx-xx-xx   £x               £x                        £x


Total now due: £x

[Please note that we are claiming interest at the rate of 8% above base rate from the date payment was due, in accordance with the Late Payment of Commercial Debts (Interest) Act 1998 (“the Act”). Interest continues to accrue at the rate of £x per day and you should ensure that you calculate the additional daily interest that has accrued when you send payment. ]* OR

[Please note that we are claiming interest at the rate of x% [per annum/above base rate] from the date payment was due in accordance with clause x of our terms and conditions]

In addition to interest we are entitled to compensation of £x under the Act. (£40 for debts less than £1,000, £70 for debts between £1,000 to £9,999, £100 for debts over £10,000).* 

We write to advise that unless we receive payment of £x within the next 7 days we will be left with no alternative but to issue court proceedings against you. If we are forced to issue proceedings against you then we will also be claiming interest, court fees and fixed solicitors costs on top of the sum outstanding.

We trust the above will not be necessary and that we will receive now payment by (date).

Yours faithfully


* Please note interest and compensation can only be claimed under the Act if it is a business debt.