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- IPSE Late Payment Letter Template: Gentle Reminder
IPSE Late Payment Letter Template: Gentle Reminder
- Tools and Templates
- 22 Mar 2021
Chasing late payment
As a freelancer, late payment can seriously affect your cashflow and wellbeing, but it can often feel difficult to approach late-paying clients due to concerns around potentially damaging the relationship. This is why we have crafted three late payment template letters.
This is the first of 3 letters to send to chase a client who is late to make payment. Use this letter as a gentle reminder to a client who is late to make payment. The template includes the correct terminology and payment terms so that you can stick to your rights as a freelancer when it comes to late payment.
A follow-up letter and final demand letter can also be found in the IPSE Library and are available to IPSE members.
Your late payment rights as a freelancer
Not only is late pay affecting freelancers’ businesses and their living costs but it is also taking up valuable time, with an average of 20 days a year spent chasing unpaid invoices.
It's vital that as a freelancer you know your rights so that you can have the right payment terms in place and confidently put them into effect if needed. These late payment letter templates already include the correct terminology to help with this.
Late Payment of Commercial Debts (Interest) Act 1998
The Late Payment of Commercial Debts (Interest) Act 1998 allows you to claim costs outlined in your invoice alongside any compensation. Even if this was not stated in your payment conditions, you could get compensation against public sector organisations and businesses with more than 50 employees. You can now also claim up to eight per cent interest on payments from other small businesses, starting from the day after the last day it should have been paid.
We want to end the culture of late payment: We need to stop freelancers losing large amounts of time and money each year to the UK’s poor payment culture by giving the Small Business Commissioner powers to fine and ‘name and shame’ late payers.
Meet the author
IPSEIPSE is the leading association for contractors, consultants, interims, freelancers and the self-employed. We strive to bring our members the most comprehensive and useful range of information and services and all the latest news about what affects your business.