How to chase unpaid wholesale invoices, with reminder templates

Updated 2 November 2026 · DELLI

Chasing unpaid wholesale invoices is a job no brand enjoys, and late payments hit small brands hardest, because you have already paid for ingredients, packaging and postage before the stockist pays you. A clear process gets that money in sooner, without falling out with anyone. This guide covers how to set terms, how to make an invoice easy to pay, a reminder schedule with three emails you can copy, your rights under UK late payment law, and when to stop supplying.

1. Set payment terms before the first order

Payment terms are easiest to agree before a stockist has your stock on their shelves. Put them on your trade sheet, repeat them in the order confirmation, and print them on every invoice.

• How long they have to pay. For example 14 or 30 days from the invoice date. Pick one and use it for everyone unless you agree otherwise in writing.
• Pro forma for first orders. Asking a new account to pay before you dispatch is reasonable. Move them to credit terms once they have paid on time a couple of times.
• What happens if they pay late. Say that you charge statutory interest and compensation on late payments (section 5 explains what that means).
• Who to send invoices to. Ask for the email address of whoever pays the bills. In a small shop it's often the owner; in a pharmacy group or garden centre it may be an accounts team.

Write down any exceptions you agree, such as 60 days for a large account, and put them in that customer's record so the next invoice uses the right terms.

2. Make the invoice easy to pay

An invoice the buyer's accounts team can't process will sit unpaid until someone notices. Check every invoice has:

• Your business name, address, and VAT number if you're registered
• An invoice number and invoice date
• The buyer's PO number, if they gave one. Some accounts teams can't pay without it.
• Each product, quantity, unit price and line total, matching what you delivered
• The due date as a date ("Due 14 November"), as well as the terms ("30 days")
• Your bank details: account name, sort code and account number
• A payment link, if your accounting software offers one

Send the invoice on the day you dispatch, to the person who pays. An invoice sent a week after delivery has lost a week before anyone looks at it.

3. A reminder schedule

Decide your schedule once and follow it for every customer. It feels less personal to the buyer, and less awkward to you, when reminders arrive at the same points every time.

1. 3 days before the due date: a friendly heads-up with the invoice attached.
2. On the due date, or 1 to 3 days after: a polite note that it's now due.
3. 7 days overdue: a phone call or a short personal message. Ask if anything is stopping payment.
4. 14 days overdue: a firm email that mentions statutory interest and compensation and says you'll pause further orders.
5. 30 days overdue: pause supply and decide on next steps (section 6).

Keep a note of each reminder you send and any reply, so whoever picks it up next can see the history.

4. Templates for chasing unpaid invoices

Change the names and numbers and these are ready to send. Attach the invoice to every one, even if you have sent it before.

Friendly, before the due date

On the due date, or soon after

Firm, when it's overdue

Keep the firm email factual. State the amount, the dates, what you have already sent, and what happens next. Leave out anything about how frustrated you are.

5. Late payment interest and compensation

The Late Payment of Commercial Debts (Interest) Act 1998 gives you rights when another business pays your invoice late. You can claim:

• Statutory interest at 8% above the Bank of England base rate
• Fixed compensation for each late invoice: £40 if the debt is under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more

It applies to business-to-business sales, which covers selling to shops, cafés, salons and other stockists.

Whether you claim is up to you. One approach is to mention it in the firm reminder and only charge it to accounts that keep paying late. Mentioning it tells the buyer you know your rights.

6. When to stop supplying

Sending more stock to an account that owes you money adds to what you could lose. Set a rule in advance so the decision isn't made on the spot when a new order arrives.

• Pause new orders once an invoice is more than 30 days overdue, or once the amount owed passes a limit you set for that account.
• Tell them clearly. "We're holding this order until invoice 1042 is paid. As soon as it's cleared we'll dispatch the same day."
• Offer a way back. A payment plan for the overdue amount, and pro forma for new orders until it's cleared.
• Make it formal if needed. If calls and emails get no response, send a final letter giving a date to pay, then consider a debt recovery service or the small claims process.

Questions about late payment

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