What Happens if a Customer Does Not Pay? 

A practical guide for self-employed sparks and small firms 

Late payment is a headache every contractor meets sooner or later. Whether you came up through a traditional electrician course or an nvq level 3 electrical fast track route, you still need the same business reflexes to protect your cash flow. At Elec Training Birmingham we teach these points inside our advanced electrician training unit, yet it is worth laying them out in one place for quick reference.

1. Spot the two classic non-payers

1. Slow but genuine – will settle, yet think thirty days is a suggestion rather than a rule. 
   
   
2. Intentional dodger – never planned to pay and will hide behind excuses. 

Knowing which one you are dealing with changes how hard you push each step that follows.

2. Start with a written agreement every time

Before tools leave the van, hand your client a short job sheet: 

• Scope of work in plain words 

• Price and staged payment dates 

• Sign-off box for “work completed to spec” 

If a client refuses to sign, treat that as an early red flag. Walk away or collect a deposit that covers materials.

3. Invoice quickly and correctly

A tidy invoice shows you take payment seriously. Send it the same day the job closes, list your bank details clearly, and restate the agreed due date. Accuracy prevents the “sorry your invoice is missing a PO number” delay tactic.

4. Know when the clock starts

UK late-payment law says a bill is overdue 30 days after the customer gets the invoice or 60 days after a business-to-business job. Your written agreement can shorten the period, for example “payment due seven days from invoice”. That date then sets the trigger for interest and recovery fees.

5. Add statutory interest the right way

After the grace period, you may legally add 8 percent plus Bank of England base rate. Work it out: 

Debt x (base rate + 8%) ÷ 365 × days late = interest 

Issue an updated invoice showing the new total. Many slow payers settle the moment they see extra costs appear.

6. Claim debt-recovery charges

The legislation lets you recover a fixed fee for chasing: 

Add the fee on the same revised invoice as the interest.

7. Step-by-step escalation path

1. Friendly reminder – send at five days overdue, attach the original invoice. 
   
   
2. Second notice – at ten days, reference the late-payment rules and planned interest. 
   
   
3. Final demand – at 20 days, include new invoice with interest and recovery fee. 
   
   
4. Letter before action – give seven days to pay before court. 
   
   
5. Small-claims court – for debts under £10,000, low cost and handled online. 
   
   
6. Enforcement options – bailiffs, attachment of earnings, or property charge once judgment is won. 

Keep copies of every email and letter. A judge will want to see that you tried polite methods first.

8. Cost vs reward of court action

Court fees scale with the debt, so weigh them against the amount owed. For small invoices the statutory interest and fixed recovery fee often work on their own, avoiding legal costs entirely.

9. Protect yourself on the next job

• Use staged payments for projects longer than a week. 

• Take card deposits on call-outs over £250. 

• Vet new commercial clients with a quick credit check. 

• Keep materials invoices separate so you can prove out-of-pocket costs. 

Simple habits beat long legal chases.

10. The NVQ twist: evidence counts

Learners on our nvq level 3 electrical pathway sometimes worry that refusing risky customers will slow their portfolio. Reality is the opposite. A half-paid install rarely gives the clean evidence an assessor needs. Good clients, good paperwork, quicker sign-off – it’s that straightforward. 

And yes, a tiny grammar slip finds its way into all our paperwork now and then, but clients forgive that quicker than a sloppy contract. 

Most customers do pay on time. For the few who stall, follow the legal script, stay polite, and move steadily from reminder to interest to court claim if needed. Your calm process shows you are professional and usually unlocks the funds without a judge. 

Taking control of payments is as important as learning safe isolation or fault-finding. We embed these steps across every electrician training block at Elec Training Birmingham so graduates leave able to wire a board and manage a balance sheet. Add them to your toolkit today and keep cash flowing, because late invoices do not pay the rent.