Letter before action

A letter before action is the usual next step on an unpaid B2B invoice

A letter before action (LBA) is the formal written warning you send before a county court claim for an unpaid commercial invoice. It is not a court form, not a statutory demand, and not a CCJ. The Civil Procedure Rules do not use that name. Practice Direction — Pre-Action Conduct and Protocols requires a concise letter of claim where no specific protocol applies.

If the debtor is a limited company or LLP, that letter is what commercial recovery calls an LBA — typically 14 days in a straightforward case. If the debtor is a sole trader or other individual, use a Debt PAP Letter of Claim instead, with the 30-day timetable and annexes. Details: what to include in a letter before action.

What the letter must set out

Your legal name and the debtor’s registered office or last known address
Invoice numbers, dates, what was supplied, and the outstanding principal
Any statutory interest and £40 / £70 / £100 compensation you can actually claim
How to pay, where to send a dispute, and a clear deadline
That you may issue a county court claim if they do not pay or engage

Confirm when the invoice is legally late before you write. A reminder is not enough. A false figure in a pre-action letter can be contempt of court.

Write it yourself, or instruct a partner

You can send the letter on your own letterhead. The free template below is a practical B2B draft for a limited-company debtor. It is not legal advice and not a solicitor’s letter. Do not use it on a sole trader.

If reminders have already failed, upload the unpaid invoice. A partner debt collection agency can send a compliant letter and take the file. We introduce the claim; we do not issue proceedings. Recovery is not guaranteed.

Free letter before action template

Leave your details and copy the letter. It is a practical B2B template, not legal advice.

Not legal advice

This is a practical B2B template, not a solicitor’s letter and not legal advice. You must fill in the [SQUARE BRACKETS] and send it on your own letterhead.

If the debtor is a sole trader or an individual, do not use this letter. Use the Pre-Action Protocol for Debt Claims instead.

PASECOM GROUP LTD trading as Debt Collection UK is an introducer, not a law firm, and is not authorised by the Financial Conduct Authority.

Letter before action template (UK B2B)

Copy letter Download .txt

Free B2B letter before action template

For a limited company or LLP debtor only. Not legal advice, not a solicitor’s letter, and not for sole traders — use the Pre-Action Protocol for Debt Claims instead.

[Your Company Name]
[Your Company Address]
[Your Email Address]
[Your Phone Number]
[Date]
Strictly Private & Confidential
[Debtor Company Name]
[Debtor Company Address]
Subject: FINAL DEMAND FOR PAYMENT / LETTER BEFORE ACTION
Outstanding Balance: £[Total Amount Owed]
Dear Sir/Madam,
We are writing to you regarding the above outstanding balance, which relates to overdue invoice(s) for goods/services provided to your business by [Your Company Name]. 
Despite our previous reminders and attempts to resolve this matter amicably, the following invoice(s) remain unpaid and are now severely overdue:
• Invoice No: [Insert Number] | Date: [Insert Date] | Amount: £[Insert Amount]
As this is a commercial transaction, we draw your attention to the Late Payment of Commercial Debts (Interest) Act 1998. We reserve the right to claim statutory interest at 8% above the Bank of England base rate, alongside fixed late payment compensation for each overdue invoice.
This letter serves as our formal Letter Before Action.
We require the total outstanding balance of £[Total Amount Owed] to be paid in cleared funds into our bank account no later than 4:00 PM on [Date exactly 7 days from today].
Payment Details:
Bank: [Your Bank Name]
Account Name: [Your Business Account Name]
Sort Code: [Your Sort Code]
Account No: [Your Account Number]
Reference: [Debtor Company Name / Invoice Number]
If we do not receive full payment by the specified deadline, we will immediately and without further notice pass this account to our retained Commercial Debt Collection Agency. 
Please be advised that under the aforementioned legislation, we are legally entitled to add the agency’s recovery costs and legal fees to your outstanding balance, significantly increasing your total liability. Furthermore, subsequent legal action may severely impact your company’s credit rating.
We urge you to treat this matter with the utmost urgency to avoid escalated costs and legal proceedings.
Yours faithfully,
(Signature)
[Your Name]
[Your Job Title]
[Your Company Name]

A letter before action is the usual next step on an unpaid B2B invoice

What the letter must set out

Write it yourself, or instruct a partner

Free letter before action template

Leave this invoice with us