Letter before action: what to send before you escalate
A letter before action (sometimes called a letter before claim) is the formal demand you send before you escalate a debt. It’s the polite-but-firm line in the sand: pay by this date, or here’s what happens next. Done well, it settles a lot of debts on its own — because it shows you’re organised, you know your rights, and you’re ready to follow through.
Here’s how to get one right.
What to put in it
A good letter before action is factual and specific. Include:
- Who you are and the debt you’re chasing — invoice number, date and amount.
- What’s overdue — the original sum, plus any statutory interest and compensation you’re entitled to add on a commercial debt.
- A clear deadline to pay, and how to pay.
- What happens if they don’t — for example, that you’ll instruct a debt collection agency or begin court proceedings, and may claim further interest and costs.
Keep the tone measured. You’re stating facts and consequences, not making threats.
The rules if you’re chasing an individual
This is where people trip up. If the debtor is an individual or a sole trader, the Pre-Action Protocol for Debt Claims applies. It expects your letter of claim to include specific information — details of the debt, how it was incurred, and an information sheet and reply form — and to give the debtor 30 days to respond before you issue a court claim. Skipping this can count against you if the case ever reaches court.
For a straightforward business-to-business debt, the protocol is lighter, and a shorter deadline (7–14 days) is normal.
Let the tool write it for you
You don’t need to draft this from scratch. Our free late-payment calculator works out the interest and compensation on a commercial invoice and generates a ready-to-send letter before action as a PDF, with the figures already filled in. Add your details, download it, send it.
Then follow through
The single biggest mistake is not backing it up. If your deadline passes and nothing happens, the letter loses its power and the debtor learns to ignore you. So mean it: when a letter before action is ignored, the usual next step is a debt collection agency.
When you get there, compare vetted UK agencies on Collect Compare — free and impartial — or read our guide to choosing a debt collection agency.
Frequently asked questions
What is a letter before action?
A formal written demand for payment that sets out the debt, any interest and compensation owed, and a deadline before you take further action such as instructing a debt collection agency or starting court proceedings. It's the standard last step before formal recovery.
How long should I give someone to respond to a letter before action?
For a business debtor, 7 to 14 days is common. Where the debtor is an individual or sole trader, the Pre-Action Protocol for Debt Claims expects you to give 30 days to respond and to include specific information and a reply form.
Do I need a solicitor to send a letter before action?
No. You can write and send one yourself, and many debts are settled at this stage without any legal help. A clear, correctly-quantified letter that shows you know your rights is often all it takes.
What happens if a letter before action is ignored?
You escalate to the step you warned about — usually instructing a debt collection agency or, for disputed or larger debts, starting a court claim. Following through matters; an empty threat trains the debtor to ignore you.