How To Recover Unpaid Invoices & How Professional Debt Recovery Can Help

As 2025 comes to a close, it’s vital that businesses make sure that all loose ends are tied up - particularly where unpaid invoice recovery is concerned. 

Starting off the new year on the back foot, with a laundry list of unpaid debts, can affect morale and make running your business inefficient and even less enjoyable, with your time, energy and focus dedicated to chasing what you’re owed.

How do you recover unpaid invoices? A step-by-step guide

Most clients will settle invoices in a timely manner but you’re sure to come across others over the years that need a little prodding. Having a strategy in place to ensure that these don’t pile up is advisable. 

Here’s a step-by-step guide to recovering unpaid invoices.

Step 1: Confirm the payment terms

Review the invoice and contract to check payment terms, dates and late fee policies, ensuring that there are no errors that could delay processing.

Step 2: Send an initial reminder

Remind the client about the outstanding issue in a professional and friendly way, including all relevant invoice details.

Step 3: Make further contact

If you don’t hear from the client after your initial reminder, call them or arrange a meeting to discuss what the issue is and find out what’s causing the delay.

Step 4: Resend the invoice

You may find that the client says they never received the invoice in the first place or that they’ve lost it. Resend it again, with a very clear email subject line so that there’s no room for error.

Step 5: Remind clients about late fees

You may spark a payment more quickly if you remind clients that late invoice payments will result in additional fees.

Step 6: Suggest a payment plan

If the client says they’re struggling to find the requisite funds, suggest arranging a payment plan so that they can pay you back in instalments. 

In this instance, all terms of this new arrangement should be clearly laid out and documented in full in writing, and shared with all relevant personnel to avoid future confusion.

Step 7: Send out a formal demand letter

In the event that the invoice continues to go unpaid, send out a formal final demand letter, setting out what’s owed and the potential consequences of continued non-payment.

Step 8: Consider legal action

If you have an unresolved payment dispute with a client, you can initiate legal action, which can involve sending out a solicitor’s letter or making a money claim, which can prompt payment without having to go through the courts.

How can professional debt recovery services help with unpaid invoices?

Swift, efficient action is ensured when you work with professional debt recovery specialists to help you with unpaid invoices, freeing up your time to dedicate to other aspects of running your business.

From assessing agreements and confirming legal payment entitlements to identifying the best recovery routes, sending out letters of claim, issuing court proceedings on your behalf if required and guiding you through the entire process, the Glenwood team is always on hand to help.

Get in touch if you’d like to find out more about our service provision.