30 October 2026
Losing track of unpaid invoices is easily done, but it can seriously affect your business’ cash flow. For SMEs across Pembrokeshire, maintaining a steady cash flow can be vital to day-to-day operations so getting on top of late payments can make a real difference.
Act Early
Don’t let unpaid invoices drift. Keeping a close eye on your debt book, and getting on top of invoices early, is the best way to reduce the impact on your business.
One or two late payments might not seem like a big deal, but they can snowball quickly, and before you know it your business could be struggling for cash.
Send reminders, chase late paying customers promptly and establish why the payment has not been made, agreeing (where possible) a clear way forward.
Check Your Paperwork
Keep your invoices, contracts, payment terms and correspondence in order. Make it easy for yourself or staff to check them, so it is simple to spot a missed payment or a breach of payment terms as soon as it happens.
A clear, well-organised paper trail also puts you in a much stronger position if a dispute or court claim becomes necessary down the line.
Know What You Are Entitled To
Under English & Welsh law, where you are trading with another business and your contract does not already set out its own late payment terms, you may be entitled to statutory interest (8% above the Bank of England base rate) plus a fixed compensation charge of £40 to £100 per invoice, depending on the debt size.
This means you could end up recovering more than the original invoice amount to compensate you for the late payment.
It can also be a helpful lever to pull to prompt your customer to pay, so it is always worth checking.
Consider Next Steps
How you approach a late payment depends on your circumstances and those of your customer, but there is usually a natural progression: start with an initial contact by email or phone, then follow up with a formal demand setting out what will happen if payment still is not received.
If the debt remains unpaid, the next steps would be to reference legal action and, if necessary, begin proceedings. A specialist commercial debt recovery solicitor can support you through this process in an efficient, cost-effective manner.
Get Advice Before the Problem Escalates
At JCP Solicitors, we use the latest case management technology to ensure your debts are recovered quickly and effectively.
An expert solicitor in our Pembrokeshire team can help make a plan for your personal circumstances by assessing the debt, understanding the specific situation for your business, and determining the best way forward. This might mean sending a formal letter before action, negotiating a payment plan, or advising on whether court proceedings are the right route for your case. Getting personalised advice early can save you time and money, ensuring you recover exactly what is owed.
For professional, personal advice and guidance, contact our Pembrokeshire team by calling 01437 764723 (tel:01437764723), emailing hello@jcpsolicitors.co.uk , or find us at Oak Corner, Merlins Court, Haverfordwest or Cysgod y Twr, The Pebbles, St Davids.
