You’re owed money and they’re not paying: what you can do to claim an unpaid invoice
For a self-employed person or a small business, an unpaid invoice isn’t just a figure in the red: it’s work already done that isn’t being paid for, cash flow that isn’t coming in and, all too often, sleepless nights. The good news is that the legal system offers several effective ways to claim what you’re owed, and some are quicker and simpler than people usually think.
First step: out-of-court recovery
Before going to court, the usual approach is to attempt recovery out of court: a formal claim, normally in writing and by registered post, setting out the debt and giving a deadline for payment. In many cases, a well-drafted claim — bearing a solicitor’s letterhead — is enough to prompt the debtor to respond. It also lays the groundwork in case further action is required.
The order for payment procedure: quick and designed for clear-cut debts
When the debt is for money, is overdue and can be substantiated with documents —invoices, delivery notes, contracts, correspondence—, the most commonly used route is the order for payment procedure. It is a streamlined procedure: the claim is filed with the court and the debtor is required to pay or object within a specified period.
If the debtor does not respond, the path to recovery is greatly shortened. If they contest the claim, the matter proceeds through the appropriate legal channels. The important thing is that the payment order procedure allows you to get the ball rolling without a major initial outlay.
Don’t forget late payment interest
When a customer pays late, they owe you more than just the invoice amount: in transactions between businesses and the self-employed, the law provides for late payment interest. Claiming this correctly is part of good debt collection management and also discourages the debtor from continuing to delay payment.
Be mindful of time limits
Debts cannot be claimed indefinitely: there are limitation periods. Letting time pass not only complicates the evidence—emails get lost, circumstances change—but can also result in the debt becoming unenforceable. Therefore, when faced with non-payment, the rule is simple: the sooner you act, the better.
What you should have ready
- Invoices issued and, if applicable, signed delivery notes or work reports.
- The contract or accepted quote, or the emails in which the work was commissioned.
- Any correspondence in which the debtor acknowledges the debt or promises to pay.
- A record of previous payments, if any.
At SF Abogados
At SF Abogados, we help self-employed individuals and businesses recover what is owed to them: we draft the initial claim, assess the best course of action for your case and, where necessary, handle the legal proceedings. If you have an unpaid invoice that is becoming a long-standing issue, don’t let any more time pass.
Tell us about your case at www.sfabogados.com and we’ll advise you on how to claim.
