Part of our guide: How much time can a small business save with automation?
Written by Dan Sagar, FoundationsAI. Updated October 2026.
Without a system, invoices get chased late or not at all, and your money sits in your customers' bank accounts instead of yours. A simple system has three parts: payment terms agreed before you start, the invoice sent the day the job's done, and reminders that go out on a fixed schedule until it's paid.
A reminder schedule that works
| When | What to send |
|---|---|
| The day the job's done | The invoice, with a link to pay by card |
| 3 days before it's due | A friendly heads-up |
| On the due date | "Just a reminder, payment is due today" |
| 7 days late | A polite reminder with the payment link |
| 14 days late | A firmer reminder, and a phone call |
| 30 days late | A formal letter setting out what happens next |
What to say
Before it's due: "Hi [name], a quick heads-up that invoice [number] for [amount] is due on [date]. You can pay here: [link]. Thanks, [business name]"
7 days late: "Hi [name], invoice [number] for [amount] was due on [date]. If it's already been paid, thank you and please ignore this. If not, you can pay here: [link]"
Make it easy to pay
- Put a pay-by-card link on every invoice.
- Include your bank details too.
- Take a deposit before you start bigger jobs.
Your rights when a business pays late
If your customer is a business, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim interest at 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the size of the debt. If you didn't agree payment terms, payment is due 30 days after the invoice. These rules don't cover consumers, so put late payment terms in your terms and conditions for them. See GOV.UK's guidance on late commercial payments for the details.
If they still don't pay
Send a formal letter giving a final date. After that, you can claim through the small claims process online (Money Claim Online) or use a debt recovery agency.
On FoundationsAI
Invoices, payment links and automatic reminders are included on Pro and Managed. If you already invoice from accounting software, switch on its reminders and keep the follow-up calls in your CRM. Starter doesn't include automations.
Common questions
When should I start chasing an unpaid invoice?
Send a heads-up a few days before it's due, then a reminder on the due date. Don't wait weeks.
Can I charge interest on late payments?
For business customers, yes: the Late Payment of Commercial Debts (Interest) Act lets you claim interest and fixed compensation. For consumers, only if it's in your terms.
How do I chase an invoice without damaging the relationship?
Send the same polite reminders to everyone, on a schedule. It feels less personal for both of you.
What if a customer still won't pay?
Send a formal letter with a final date, then use Money Claim Online or a debt recovery agency.
How can I get paid faster?
Invoice the day the job's done, add a pay-by-card link, and take deposits on bigger jobs.
Want to stop chasing payments yourself?
Book a 45-minute demo and we'll show you invoices and reminders working on a real account.