Debt recovery for startups: get invoices paid faster

January is when a lot of UK solopreneurs and early-stage founders do the same uncomfortable audit: you open your bank feed, spot a few “Sent 32 days ago” invoices, and realise those late payments aren’t just annoying — they’re quietly dictating your marketing decisions.

When cash is tight, you don’t run the LinkedIn ads you planned. You delay that freelancer. You skip the email tool upgrade. And the brand suffers, because consistency is expensive when your customers treat payment terms as a suggestion.

Debt recovery isn’t about being aggressive. It’s about protecting cash flow so you can keep selling, marketing, and delivering. Here’s a practical playbook (built from the legal and commercial reality in the UK) to help you get paid faster — while keeping relationships intact.

A simple rule: the longer an invoice sits unpaid, the more likely it becomes “normal” to the customer. Your job is to stop it becoming normal.

Start by sorting invoices into “disputed” vs “undisputed”

The fastest way to waste time (and damage a relationship) is to chase every overdue invoice with the same template.

Answer first: Treat an overdue invoice as either undisputed debt (they owe it; it’s a cash issue) or disputed debt (they claim a problem with your work). Your next steps depend on which one it is.

Why this matters for solopreneurs

If you’re a one-person business, your “credit control department” is you — between client work and marketing. Categorising the debt quickly does two things:

• It stops you escalating too early (which can backfire if there’s a real dispute).
• It stops you being manipulated by vague objections (“we’ll pay once the project is finished”) when the invoice is already due.

A quick test you can run in 10 minutes

Ask yourself:

1. Have they previously accepted the work/goods? (email approval, sign-off, usage)
2. Is there a specific complaint in writing? (not just “we’re not happy”)
3. Is the complaint connected to the invoiced deliverable?

If the customer can’t articulate a concrete issue, you’re usually dealing with undisputed debt.

Undisputed debt: move fast, stay calm, get it in writing

Most late payments are not about your service. They’re about the customer’s cash flow, internal process, or priorities.

Answer first: For undisputed invoices, early contact + written acknowledgement + structured follow-up gives you the best chance of getting paid without going legal.

Step 1: Call first, then confirm by email

A phone call works because it forces a real answer. But the follow-up email is what protects you.

What you’re trying to extract:

• A reason for delay (“we’re waiting on client payment”)
• A concrete payment date (“we’ll pay Friday 19th”)
• Confirmation they’re not disputing the invoice (“no issues with the work”)

That written trail matters if you need to escalate later. It also reduces the chance they invent a dispute once you get firmer.

Step 2: Offer a repayment plan — but only with rules

Sometimes the fastest way to get most of the money is a short plan. I’ve found it works best when it’s simple and slightly inconvenient for the debtor.

A good plan has:

• A small initial payment within 48 hours (this tests sincerity)
• 2–4 instalments max (longer plans often collapse)
• Clear consequences (pause work, late fees if applicable, escalation)

And yes: ask them to request it in writing, with the reason they can’t pay on time.

Step 3: Use multi-channel chasing (firm, not harassing)

A “scatter” approach can work: email, phone, and a formal letter. Messaging apps can work too if that’s how you normally communicate.

Your boundary: don’t harass. You’re building a brand, and reputation travels fast — especially in tight UK niches.

A practical cadence that’s assertive without being over the top:

1. Day 1 after due date: friendly nudge + resend invoice
2. Day 7: call + “please confirm payment date today” email
3. Day 14: firmer email + “we’ll pause work until paid” (if relevant)
4. Day 21: formal letter requesting payment within 7 days

Step 4: Know the legal “last resort” options (and their limits)

If the debtor refuses to engage and the debt is genuinely undisputed, UK businesses may consider formal routes. The source article highlights the insolvency route (e.g., statutory demands, bankruptcy petitions for individuals, winding-up petitions for companies).

Two grounded realities for founders:

• It’s a pressure tactic, not a guarantee of payment. If the customer is genuinely insolvent, you may still see little or nothing.
• It must not be used where there’s a substantial dispute. Courts can treat that as an abuse of process.

If you’re heading anywhere near this territory, get proper advice and make sure your documentation is solid.

Disputed debt: resolve the issue, or formalise the dispute quickly

Disputed invoices are different. The customer is claiming your service/product didn’t meet contract or legal standards.

Answer first: When a debt is disputed, your goal is rapid problem definition and a documented route to resolution — not endless back-and-forth.

Step 1: Force clarity (politely)

A lot of “disputes” are really discomfort with paying. So ask for specifics:

• What exactly is wrong?
• Which deliverable didn’t meet the agreed scope?
• What remedy would resolve it: replacement, remedial work, partial credit?

If they can’t answer, it’s likely not a real dispute.

Step 2: Offer commercial remedies that protect margin

If the dispute is legitimate, solve it in a way that doesn’t train the market to squeeze you.

Common remedies:

• Replacement / remedial work with a capped scope and deadline
• Partial credit note tied to a clear acceptance of the remaining balance
• Milestone sign-off for the remainder of the project

The important move: document the remedy and what happens next (including payment terms).

Step 3: If it can’t be resolved, stop “arguing in email”

At a certain point, you either:

• Use Alternative Dispute Resolution (often mediation), or
• Issue a formal letter of claim and follow the relevant UK pre-action steps

The source article references the UK Civil Procedure Rules and pre-action requirements (different protocols depending on whether the debtor is an individual or a company). Translation for solopreneurs: if it’s heading to court, you need to follow the right process and keep your paperwork clean.

Debt recovery is part of your marketing system (not just finance)

Most founders separate “marketing” and “getting paid”. That’s a mistake.

Answer first: Strong payment hygiene improves your brand and your growth because it stabilises cash flow, reduces stress-driven discounting, and lets you market consistently.

Better cash flow makes your positioning sharper

When you’re chasing cash, you make bad positioning choices:

• You accept clients who aren’t a fit.
• You over-customise proposals.
• You agree to vague scopes.

Then disputes rise, and the cycle repeats.

Client experience includes billing experience

Your brand is what clients say about you when you’re not in the room — and that includes whether you’re organised, clear, and consistent about invoicing.

A smooth billing process signals professionalism:

• Clear terms upfront
• Fast, accurate invoicing
• Predictable follow-up

That’s not “finance admin”. That’s part of customer relationship management.

A simple prevention toolkit (so you chase less in 2026)

Chasing is expensive. Prevention is cheaper.

Answer first: Tighten terms, reduce ambiguity, and automate reminders so late payment becomes the exception.

Before you start work: reduce the chance of disputes

Do these three things and you’ll cut late payment and disputes sharply:

1. Define scope in writing (even for small jobs)
2. Add acceptance criteria (what “done” means)
3. Use staged invoices (deposit + milestones)

For solopreneurs, staged invoices are underrated. They also filter out clients with cash problems before you’ve sunk too much time.

When you invoice: make paying easy

Small frictions cause big delays. Remove them:

• Put payment details on the invoice (bank transfer info, reference)
• State due date clearly (not just “Net 30”)
• Send invoices immediately after milestone completion

Automate follow-ups (without sounding robotic)

Use your accounting tool’s reminders, but customise the copy so it sounds like you.

A friendly but direct line I like:

“Just bringing this back to the top of your inbox — can you confirm the payment date today?”

It’s short, hard to ignore, and doesn’t start a debate.

People also ask: quick answers for UK founders

Should I keep working if a client hasn’t paid?

If the invoice is overdue and undisputed, pause work unless you have a strong strategic reason not to. Continuing teaches them you’ll deliver without payment.

When should I send a formal letter?

When you’ve tried normal chasing, you have evidence the debt is undisputed (or the dispute is defined), and you need to signal you’re serious. Don’t overuse it.

Can I threaten insolvency action to get paid?

Only if the debt is genuinely undisputed and you’re prepared for the fact it may still not result in payment. Using insolvency pressure where there’s a real dispute can backfire.

What to do this week (a realistic action plan)

If you want a practical reset after the Christmas/New Year slowdown, do this in one hour:

1. Export your aged receivables list.
2. Label each overdue invoice disputed or undisputed.
3. For the top 5 invoices by value:
   • call today
   • send a recap email with a payment date request
4. Add a “pause work if overdue” line to your proposals and terms.

That’s it. Boring, direct, effective.

Debt recovery isn’t a side quest. It’s part of UK solopreneur business growth because it keeps your marketing engine funded and your delivery steady.

If you cleaned up your receivables this month, what would you do with the extra headroom — publish more content, run a small paid test, or finally raise your prices?