Before you choose a next step, be honest with yourself about what kind of non-payment you are facing. The answer decides what a recovery partner can offer, whether no win, no fee is realistic, and how quickly things can move.

Three kinds of non-payment

  • Can’t pay. The customer accepts the debt but has a cash flow problem, or something worse. Promises slip, part payments appear, excuses change.
  • Won’t pay. The customer accepts the debt and could pay, but is prioritising other creditors or using you as free credit. Communication often goes quiet.
  • Disputes it. The customer says the goods or services were late, faulty, incomplete, not what was ordered, or priced differently from what was agreed. Sometimes they say the invoice went to the wrong company, or that you owe them something that cancels it out.

How to tell which you have

Read the correspondence rather than relying on memory. Did the customer raise a complaint in writing before or soon after the due date, or only after you started chasing? Have they ever acknowledged the amount, for example by asking for more time or making a part payment? Is the complaint specific, with dates and details, or vague?

A complaint that only appears after the second reminder is not automatically false, but the timing is relevant and a recovery partner will want to see it.

Why it changes the route

Formal tools designed for undisputed debts, such as a statutory demand or a winding-up petition, are not appropriate where a debt is genuinely disputed on substantial grounds. Courts will restrain their use and can order the creditor to pay costs. A straightforward county court claim is still possible, but the court will decide the dispute first.

It also affects fees. No win, no fee arrangements are more readily available for clean, undisputed debts owed by a trading company. A partner may still help with a disputed invoice, but the assessment is different and the terms may be too.

If it is disputed

  • Reply in writing, point by point, with the order, the delivery evidence and the agreed terms. Our invoice checklist lists what to gather.
  • Separate the undisputed part. If the customer accepts half the invoice, ask for that half now.
  • Consider a commercial settlement. A quick, documented agreement for most of the money can beat a slow argument over all of it.
  • Fix the paperwork for next time: a signed order, clear scope and written acceptance of the work.

If it is simply unpaid

  • Send a letter before action with the interest and compensation you are entitled to claim.
  • Check the company on Companies House so you know how urgent it is.
  • Decide early whether you want to keep the customer. Say so to anyone acting for you, because it changes the tone of the approach.
  • If you make an enquiry with us, tell us plainly whether anything has been disputed. A partner can only assess what they know about.

Agreed sum, limited company, still unpaid?

Tell us about the invoices and we’ll consider whether an introduction to an independent recovery partner is appropriate. Free, with no obligation to proceed.

Start your enquiry

This post provides general information, not legal advice. If a customer raises a substantial dispute, consider taking advice before escalating. No Win No Fee Services makes introductions; independent partners assess and provide recovery services.