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Welcome to our free industry leading guide on Letters Before Action. With nearly 25 years' experience behind us, and millions of pounds recovered for happy clients, we are the firm of lawyers many choose to recover their outstanding debts. Let us help you too.

Welcome to the Francis Wilks & Jones Debt Recovery Team. We have been helping businesses and individuals recover their debts since 2002 and a vital part of this process is the successful use of Letters Before Action. Dealt with properly, they can result in swift payment of your outstanding debt with no need for any further legal action. Our expertise learned from sending our thousands of demands can help you recover the money you are owed, quickly and efficiently.

We hope you find what you are looking for in this guide. And always remember – our specialist team is here to help. 

  • Andy Wilks. Andy is one of the founders of FWJ and also built up its impressive debt recovery team. Andy is also responsible for the superb case management and recovery systems at FWJ which help automate debt recovery instructions and maximise claims. There are few people in the country who can match his debt recovery expertise.
  • Kerrie Durban. Kerrie is a Debt Recovery Manager with significant experience of LBA’s, county court claims and enforcement.
  • Ayesha Addo is a paralegal with many years’ experience dealing with LBA’s and pre action claims, as well as county court and enforcement actions.
  • Hardeep Singh is also a paralegal, with a lot of experience in the insolvency based recovery routes, such as statutory demands and winding up petitions.

Call any of our team today for help. As a business ourselves, we understand the importance of getting paid for the work you have done.


Contents

  1. What is a letter before action?
  2. When should you send a letter before action?
  3. What should be included in a letter before action?
  4. Letter before action template
  5. Legal requirements – pre-action protocols
  6. What happens if there is no response?
  7. What does it cost to send a letter before action with FWJ?
  8. Avoiding mistakes that undermine your letter before action?
  9. How the FWJ Debt team helps you maximise claim value?
  10. What is a final demand letter?
  11. Using a solicitor v writing it yourself
  12. The role of an LBA in business debt recovery
  13. Related legal tools – statutory demands, court claims and much more
  14. Legislation and legal guidance
  15. How we help – LBA services from Francis Wilks & Jones
  16. Client testimonials and case studies

1. What is a letter before action (LBA)?

A letter before action (or “LBA”) is a formal written demand for payment, typically sent by a solicitor, that gives a debtor one final opportunity to pay before legal proceedings are issued. It sets out the details of the debt, provides a deadline for response (often 7 or 14 days), and warns of imminent court action if the matter isn’t resolved.

Also referred to as a “letter before claim”, an LBA plays a vital role in both business and personal debt recovery processes in England & Wales. Under the Civil Procedure Rules, it is often a required step before starting formal litigation — demonstrating that reasonable efforts have been made to settle the dispute out of court.

In summary: A letter before action is your legal starting pistol. It signals to the debtor — clearly and professionally — that you’re serious about recovering what’s owed, and willing to escalate if necessary.

Is a letter before action legally required?

Whilst you could just issue legal proceedings without a prior letter before action, the courts take a dim view of this. There is an emphasis on the parties to a claim trying to resolve their differences without formal legal proceedings. And this is normally done by engaging in pre litigation correspondence.

In particular, for claims against individual or sole traders, the Pre-Action Protocol for Debt Claims requires a formal letter to be sent before any legal claim can be issued. A copy of the latest Pre action protocol guidance can be found on the Ministry of Justice website debt.pap. That letter must follow a set format and include detailed supporting information such as:

  • The nature and amount of the debt
  • The basis of the claim (contract, invoice, service etc.)
  • A copy of the agreement (if available)
  • A reply form and information sheet

Failing to send this type of compliant letter can:

  • Weaken your position in court proceedings
  • Result in the judge suspending the claim whilst settlement discussions are carried out
  • Lead to adverse costs consequences, even if you are successful at court.

When a short-form demand letter can be used instead

If you are chasing a limited company, and the debt is undisputed, you don’t always need to issue a full protocol-compliant letter.

In these situations — often involving overdue invoices, commercial contracts or unpaid services — you can opt for a short-form solicitor’s demand letter, which is faster, leaner, and still carries legal weight. This can e good for a creditor looking to get its money back quickly.

At Francis Wilks & Jones, we assess each matter individually. If appropriate, we can help you bypass unnecessary delays and issue a short-form LBA that still:

  • Establishes the amount owed
  • Provides a clear deadline
  • Puts the debtor on formal notice of legal proceedings

✅ This approach is particularly effective in commercial matters where speed is critical and the facts are clear.

💬 Why is a letter before action so effective?

A solicitor’s letter shows the debtor that the matter has escalated. It’s often the tipping point between procrastination and payment. A professionally drafted LBA:

  • Adds legal weight to your demand
  • Demonstrates serious intent
  • Can help recover your debt without court action
  • Often prompts fast resolution from otherwise unresponsive debtors

At Francis Wilks & Jones, we often obtain payment for our clients in full after sending out an LBA.   With nearly 25 years’ experience in this area, our reputation and legal authority makes a real difference.

LBA’s are also known as…

You may hear a letter before action referred to by other names such as Letter before claim, Final demand letter, Solicitor’s letter before action, Demand letter and 7-day letter before action

All refer to the same underlying document: a written legal warning before court proceedings begin.

❓ FAQs – letters before action explained

What happens after a letter before action is sent?
Is a letter before action legally binding?
Can I send an LBA myself?
Do I have to send an LBA before going to court?

2. When should you send a letter before action?

Timing is everything when recovering an unpaid debt. Send a letter before action (or LBA) too early, and you risk escalating a situation that could still be resolved amicably. Wait too long, and you may damage your chances of recovering the money — or lose credibility. At Francis Wilks & Jones, we guide clients on when the timing is right — balancing the legal position with commercial reality. In our experience clients, for the best of intentions, tend to wait too long to send an LBA, not wishing to harm the customer relationship

⏳ Signs it’s time to send an LBA

You should consider sending a letter before action when:

  • You’ve sent one or more invoices and they remain unpaid for more than 14 days
  • The payment deadline has passed without communication
  • You’ve sent chasers (email or phone) with no response

  • The debtor is ignoring reminders, stalling, or going quiet
  • There’s no genuine dispute or complaint
  • You’ve lost confidence in voluntary repayment
  • You have heard rumours about the customer’s financial position

In many cases, our clients send an LBA within 7 to 21 days of the payment due date — particularly where:

  • The sum is significant
  • There’s a risk of the debtor becoming insolvent
  • There’s no realistic benefit in further informal chasing

What if you’re chasing a business vs an individual?

If the debtor is a limited company or LLP, you can usually issue a short-form solicitor’s letter swiftly — especially where the debt is undisputed.

If you’re pursuing an individual or sole trader, and you’re a business, you should really follow the Pre-Action Protocol for Debt Claims which are contained in the Protocol Civil Procedure Rules, which includes:

  • A longer deadline (30 days)
  • Additional documentation (e.g. reply form and info sheet)

We can advise you which route is fastest and most cost-effective. Sometimes, where you are concerned about the viability of the customer, you might decide to skip the protocol conditions and go straight in with a short form demand. Whilst there are some risks in doing this, it might just get you paid more quickly and ahead of other creditors.  We can help advise on the upsides and downsides of this approach.

Common deadlines in letters before action

There’s no fixed legal timeframe, but most LBAs provide:

  • 7 days to pay (for commercial matters and high urgency)
  • 14 days (common default for B2B claims)
  • 30 days (required under the Pre-Action Protocol for individuals)

At FWJ, we tailor the timeline based on your debtor, sector, and objective — ensuring it’s appropriate, enforceable, and proportionate. For some clients we give as little as 3 days (with a threat of insolvency proceedings) if the debt is undisputed.

Why you shouldn’t wait too long

Waiting too long can create risks:

  • The debtor may become insolvent
  • The passage of time might mean key witnesses at your company leave and this means you have no one left who dealt with the customer on the contract
  • Delayed action can signal uncertainty or lack of resolve

If your debtor has gone quiet for more than a week — and you’ve already sent one or more reminders — it’s usually time to take formal action.

The earlier you send an LBA, the more control you retain over the process — and the more likely you are to recover what you’re owed without needing to go to court. Our team at FWJ can help get a fully compliant letter out the door in 24 hours.

FAQs – sending your LBA at the right time

How soon after a missed payment should I send a letter before action?
Can I send a letter before action without sending a reminder first?
Is it ever too early to send an LBA?
Can I send multiple LBAs?

3. What should be included in a letter before action?

A letter before action (LBA) needs to do more than just demand payment — it must clearly and formally set out the basis of your claim. Whether you’re writing it yourself or instructing solicitors like Francis Wilks & Jones, there are certain key elements that should always be included to ensure your letter is both effective and compliant.

Getting this right not only increases your chances of recovering the debt swiftly but also puts you in a stronger position should the matter proceed to court. Our team at FWJ can help you do this.

Essential contents of a letter before action

At a minimum, every LBA should include:

Your name and address (or your business details)

Debtor’s name and address

Clear reference to the amount owed (broken down if needed)

The basis of the debt (e.g. unpaid invoice, breach of contract)

The due date and any relevant reference number or invoice date

A summary of previous attempts to recover payment (e.g. reminder emails, chaser letters)

A fixed deadline for payment (typically 7, 14 or 30 days)

A warning of further action if the debt is not paid (such as court proceedings or statutory demands)

Contact details for response or payment

Where appropriate, it should also include:

  • Interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998(we can help calculate these for you)
  • Bank details or payment instructions
  • Reference to the relevant legal framework (e.g. Civil Procedure Pre-Action Protocol if applicable)

Tailoring your letter: short-form vs protocol-compliant

If your debtor is a limited company and the debt is undisputed, a short-form solicitor’s letter with clear legal tone and a fixed deadline is usually sufficient — and often more efficient.

But if your debtor is an individual or sole trader, and you are acting as a business, you must comply with the Pre-Action Protocol for Debt Claims, which requires additional elements, including:

  • A detailed information sheet
  • A reply form
  • A financial statement template
  • A minimum 30-day deadline to respond

At Francis Wilks & Jones, we’ll assess which format is appropriate and draft the letter accordingly — saving time, avoiding errors, and protecting your legal position.

Including interest and compensation

One of the most overlooked aspects of a letter before action is the inclusion of statutory interest and late payment compensation. Under the Late Payment of Commercial Debts (Interest) Act 1998, you may be entitled to:

  • Statutory interest (8% above base rate)
  • Fixed compensation:
    • £40 for debts under £1,000
    • £70 for debts between £1,000 and £10,000
    • £100 for debts over £10,000
  • Reasonable debt recovery costs, if they exceed the fixed amount

At FWJ, our systems automatically calculate these amounts in real time — ensuring your letter includes everything you’re legally entitled to claim. We can take the hassle out of doing this for you – and add hundreds, even thousands of pounds, to your base line claim.

Common pitfalls to avoid

Many clients come to us after trying a DIY LBA and getting no response. Typical issues include:

  • Leaving out key details like payment dates or invoice references
  • Not specifying a payment deadline
  • Using vague or emotional language
  • Failing to state the legal basis of the debt
  • Omitting interest or compensation you’re entitled to
  • Not following the correct format under the pre-action protocol (when applicable)

At Francis Wilks & Jones we will help you get your LBA right the first time — and improve your chances of getting paid.

❓ FAQs – what to include in your LBA

What happens if I forget to include something important?
Can I add interest and late payment compensation in the letter?
Should I send supporting documents with the letter?
Can I use an LBA template?
Should I include bank details in the letter?

4. Letter before action template (free sample)

Many clients want to understand what a letter before action (or LBA) should look like before deciding to send one — or to instruct a solicitor like Francis Wilks & Jones to draft it. While we always recommend professional advice for higher-value or complex claims, the structure of an effective LBA is consistent.

Here’s a simplified example template for a commercial debt claim that you can adapt for your business (not suitable for use with individuals or sole traders where the Pre-Action Protocol applies).

Basic letter before action template – commercial debt

[Your Business Name]
[Your Business Address]
[Postcode]
[Email] / [Phone Number]

[Debtor’s Name or Business Name]
[Debtor’s Address]
[Postcode]

Date: [Insert Date]

Subject: Final demand for payment – unpaid invoice [Reference Number]

Dear [Debtor Name],

We write regarding the above invoice which remains unpaid despite our previous reminders. The invoice was issued on [Date], with a payment due date of [Date], for the sum of £[Amount] in respect of [brief description of goods/services].

To date, no payment has been received. Accordingly, we now give you [7/14] days from the date of this letter to make full payment. If payment is not received by [Final Deadline Date], we reserve the right to commence legal proceedings against you without further notice. This may include a claim for:

  • The principal sum of £[Amount]
  • Statutory interest in accordance with the Late Payment of Commercial Debts (Interest) Act 1998
  • Fixed late payment compensation and any reasonable costs of recovery

Our bank details are:
[Bank Name]
Account Name: [Name]
Sort Code: [00-00-00]
Account Number: [12345678]

Please treat this matter with urgency. If you believe this payment has already been made, or if there is any reason for non-payment, contact us immediately.

Yours sincerely,
[Your Name]
[Your Position]
[Your Company Name]

⚠️ Important: when not to use this template

Do not use a version such as the one above if your debtor is:

In these cases, a compliant letter must be drafted with specific enclosures, including a reply form and information sheet.

At FWJ, we can handle all this for you — ensuring compliance and avoiding delays. Let us take the strain.

❓ FAQs – using a letter before action template

Is it safe to use a free LBA template?
Can I use one template for multiple clients?
Do I have to send it on company letterhead?
Is a solicitor-drafted letter more effective than a template?
Can FWJ draft and send the letter for me?

To get started – you can even upload your own details by signing up to our instant letter before action link and we can take it from there for you.


Before a court claim is issued, the courts expect parties to take certain steps to resolve disputes — including sending a letter before action (LBA) that complies with the Civil Procedure Rules (or CPR). In particular, if you are a business seeking payment from an individual or sole trader, you are required to follow the Pre-Action Protocol for Debt Claims.

Failing to follow the relevant protocol can result in:

  • Delays to issuing your claim
  • The court pausing proceedings (a “stay”)
  • Costs penalties, even if you win your case

At Francis Wilks & Jones, we ensure that where appropriate, every letter we send meets the legal requirements — saving our clients time, stress, and money.

What is a pre-action protocol?

A pre-action protocol is a set of rules laid out in the Civil Procedure Rules. The Civil Procedure Pre-Action Protocol is designed to:

  • Encourage early resolution of disputes without court
  • Narrow the issues in dispute
  • Make sure both parties have a chance to communicate fairly

Different protocols apply depending on the nature of the dispute — and for debt claims, there are specific steps creditors must take if they are pursuing a consumer, individual, or sole trader.

📄 Read the full Pre-Action Protocol for Debt Claims:
🔗 justice.gov.uk/documents/debt-pap.pdf

What must be included under the debt protocol?

If you are a business seeking payment from a sole trader or individual, your LBA must include full details of the debt and how it arose, a copy of the written agreement or contract (if available), a statement of account or breakdown of the amount owed, a formal reply form and information sheet and a minimum of 30 days for the debtor to respond

This is different from a typical 7–14 day commercial LBA.

🛠 How FWJ ensures full compliance

We handle this process end-to-end for our clients. When a debt is owed by a consumer or sole trader, our team identifies whether the protocol applies, gathers and formats all supporting documentation, calculates any interest or statutory compensation, ensures all required forms are included and sets compliant response deadlines and tracks follow-up

Our letters are drafted with 25 years’ experience behind them. They regularly result in payment without the need to escalate further.

🧠 Not sure if your debtor is a company or sole trader? We’ll check this for you before drafting the letter — at no extra cost.

❓ FAQs – pre-action protocol and legal rules

Do I always need to follow a pre-action protocol?
What happens if I skip the protocol?
Can I use the same letter for companies and individuals?
What are the Civil Procedure Rules?
Can FWJ handle this for me?

6. What happens if there’s no response?

Sending a well-drafted letter before action can often prompt swift payment — but not always. If your debtor ignores the letter, you’ll need to decide what action to take next. This is where having a clear escalation process — and legal support — can make all the difference.

At Francis Wilks & Jones, we advise our clients on the most effective next steps, whether that’s legal proceedings, serving a statutory demand, or enforcing debt through the courts.

Step 1 – Review your position

Before taking action, we recommend you assess:

  • Has the LBA deadline passed (e.g. 7, 14 or 30 days)?
  • Was the letter received? (e.g. tracked post, email read receipts)
  • Has the debtor responded in any form (e.g. denial, payment offer)?
  • Is the debt still within the legal time limit (usually 6 years)?

Once that’s confirmed, you’ll be in a strong position to escalate.

What if the debtor acknowledges the letter but doesn’t pay?

A reply — even without payment — is still progress. Engagement is key to getting paid. They may offer a payment plan, dispute the amount or raise concerns or request more time or documentation. In these cases, it’s often best to reply once more — clearly and firmly — and set a final payment deadline before proceedings.

Our FWJ debt team has all the experience needed to deal with responses and maximising your chances of getting paid.

What if there’s no reply at all?

If your debtor ignores the LBA completely, you may consider one or more of the following:

1. Follow up with an even stronger LBA

We sometimes follow up the initial letter and enclose a draft of the legal proceedings we will issue if the debt is still not paid.  This often results in payment – and has the added benefits to our clients of 1. Avoiding court issue fees, 2. Being ready to issue if the debt is still not paid.

2. Issue a County Court claim

We offer fast, cost-effective legal action to recover unpaid sums. Court orders (CCJs) can damage credit and force compliance. In the event of continue non payment – we can escalate to enforcement (bailiffs, charging orders etc).

3. Serve a statutory demand

A statutory demand is a powerful insolvency tool for debts over £750 and often leads to quick settlement due to risk of winding-up

4. Issue a winding up petition

Whilst higher risk, you can go straight for a winding up petition to force payment. But ALWAYS take legal advice before doing this.

Our superb debt team will advise you on the most cost-effective, proportionate route — and ensure you remain compliant with court requirements.

🔁 Can I send another LBA?

As above – you can, but just sending similar types of letters without follow-through can weaken your position and give the impression you’re unwilling to act.

If you do send another LBA, we recommend escalating the legal threats, for example by enclosing a draft of the Claim Form with the letter – to get their attention. Our team can help with this and maximise the chances of you getting paid.

❓ FAQs – no response to a letter before action

How long should I wait after the deadline passes?
Should I send a follow-up reminder?
Is silence the same as refusal to pay?
Can I claim legal costs if I have to escalate?
Can FWJ take over if I’ve already sent an LBA myself?

7. What does it cost to send a letter before action with FWJ?

One of our letters before action carries significant legal weight and can help you get paid quickly. We can also maximise all claims for compensation and interest at the same time.

We offer a fast, affordable, fixed-fee LBA service that’s ideal for businesses, directors, and individuals who want to take action quickly, professionally, and cost-effectively.

Fixed-fee letter before action services

Our standard fixed-fee letter before action includes:

  • Review of your documents and brief
  • Formal solicitor-drafted LBA tailored to your case
  • Inclusion of statutory interest and late payment compensation (if applicable)
  • Dispatch via email and first-class post (recorded delivery optional)
  • Follow-up strategy advice if no response is received

Our standard costings for for Letters Before Action can be found here.

Why businesses choose us over DIY or template letters

While there are free templates online, and you can write your own LBA, there are significant advantages to using our  team at FWJ:

  • Our letters are compliant with legal protocols, saving you the risk of court delays
  • We use precise language that communicates the seriousness of the situation
  • Our name adds authority and credibility — many clients report payment within days. We are a known law firm specialising in debt recovery work.
  • We ensure interest, compensation, and all recoverable costs are correctly included. This can add hundreds, even THOUSANDS of pounds to your baseline claim.

Plus, if your LBA doesn’t prompt payment, you’re already working with a team that can escalate the matter quickly — without needing to start over.

❓ FAQs – cost and effectiveness of FWJ’s solicitor letters

How much is a solicitor’s letter before action?
Is a solicitor’s letter really more effective than a DIY letter?
Can I add the legal cost to the debt?
Will I get a refund if the letter doesn’t work?
Can I include more than one invoice in a single LBA?

8. Avoiding mistakes that undermine your letter before action

A well-written letter before action (LBA) can be highly effective and get you paid quickly. But a poor one can seriously weaken your position, especially if the matter ends up in court (which you want to try and avoid if possible).

The most common LBA mistakes we see

1. Using outdated or generic templates
Templates from forums or downloads may not reflect current law or your specific type of debt. Worse still, they may contain incorrect legal terms or timings.

2. Not including key details
Forgetting to specify the exact amount owed, invoice references, or due dates can render your letter vague or ineffective.

3. Failing to set a clear payment deadline
Without a stated deadline (e.g. “within 7 days”), the debtor isn’t under pressure to act — and may simply ignore you. It is best to stipulate payment “in cleared funds no later than 4pm [date]” and this way the debtor knows exactly when it has to pay.

4. Using threatening or emotional language
Aggressive wording may breach civil procedure rules or harm future negotiations. Your letter should be firm but professional. Bad language doesn’t help get you paid.

5. Sending it to the wrong party or address
If the debtor is a limited company, you must use the correct legal name and registered office — or risk delays and enforcement issues. Be careful to check if the accounts payable team are located in a different office. Always send demands by e mail where you can – with a delivery & read receipt notification

6. Overlooking the correct protocol
If you’re chasing an individual or sole trader and don’t follow the Civil Procedure Pre-Action Protocol, your claim may be stayed (paused) or risk being penalised in court.

7. Not including interest or compensation
This is often money left on the table. You may be entitled to statutory interest and late payment fees — but they must be included in your letter. It can add hundreds (or thousands) of pounds to your claim.  We can help calculate these sums for you.

8. Re-sending without escalating
Multiple letters without legal follow-up can make you look uncertain or inconsistent — and embolden the debtor. Have a strategy and stick to it. Don’t make hollow threats if you can avoid them.

✅ How FWJ helps you avoid these risks

When you instruct Francis Wilks & Jones, we ensure:

  • Your letter is tailored to your claim and recipient
  • The correct format, tone, and legal references are used
  • Interest, compensation, and recoverable costs are included
  • It is properly addressed and delivered to the correct party
  • Protocol compliance is checked — and met, if required

📬 Your letter is not just legally compliant — it’s a strategic tool designed to maximise the pressure for payment.

❓ FAQs – common errors and how to avoid them

What if I used the wrong company name in the letter?
Can I recover interest if I forgot to include it in the first letter?
Should I send another LBA if the first one didn’t work?
Do the courts look at the LBA later on?
Can FWJ review a letter I’ve already sent?

9. How the FWJ debt team helps you maximise claim value

Recovering the principal sum of a debt is important — but many businesses overlook the additional amounts they are legally entitled to.

When you instruct Francis Wilks & Jones, we make sure you recover everything the law allows: not just the amount owed, but also statutory interest, late payment compensation, and even reasonable recovery costs in some cases.

This can add hundreds — or even THOUANDS — of pounds to your recovery, especially if the debt is long overdue or high value.

📈 What can be added to a debt under the law?

Under the Late Payment of Commercial Debts (Interest) Act 1998, business creditors can claim:

  • Statutory interest:
    8% above the Bank of England base rate (currently [link to base rate if desired])
  • Fixed compensation PER INVOICE
    • £40 for debts under £999
    • £70 for debts between £1,000 and £9,999
    • £100 for debts over £10,000
  • Reasonable recovery costs:
    If your actual recovery costs exceed the fixed amount, you may be able to claim additional sums — especially where legal input has been needed.

When you instruct Francis Wilks & Jones, you have access to our fantastic debt recovery systems that can calculate interest and compensation in seconds. Not only does this save you time, it can greatly increase the amount you can recover.

How FWJ calculates these additional amounts in real time

At Francis Wilks & Jones, we don’t estimate — we calculate.

Our systems:

Automatically calculate daily accruing interest based on the overdue amount and timeline

Determine the correct fixed compensation bracket

Assess whether additional recovery costs may apply

Ensure all figures are fully itemised in your letter before action and any subsequent court claim

This ensures your debtor understands the true cost of non-payment, which increases the likelihood of prompt settlement.

🧠 Why this matters to your cash flow

Many businesses unknowingly undervalue their debt claims by failing to include these additional sums. Over the course of a year — especially with repeat late payers — this can lead to a loss of working capital, strained cash flow, and lower net margins.

❓ FAQs – interest, compensation, and claim maximisation

Can I always claim interest and compensation?
Can I still add interest if I didn’t include it in the original invoice?
Do I need to itemise the amounts in the letter before action?
Can interest continue after court proceedings begin?
Is it worth claiming these extras on small debts?

10. What is a final demand letter?

A final demand letter is a strong, written warning sent to a debtor before taking legal action. It tells the debtor, in no uncertain terms, that this is their last opportunity to pay before the matter is escalated — usually to solicitors, formal legal proceedings, or insolvency action.

It’s not a legal requirement in the way a letter before action might be — but it can be a highly effective final nudge, especially in ongoing commercial relationships where the creditor wants to avoid escalating too soon.

At Francis Wilks & Jones, we advise on whether a final demand or a solicitor’s LBA is the best next step — and we often help clients use the final demand as a way to signal real intent while preserving goodwill where appropriate.

What should a final demand include?

It typically contains:

  • A clear summary of the debt and what it relates to
  • A reminder of earlier attempts to secure payment (emails, phone calls, etc.)
  • A firm deadline for payment — often 7 or 14 days
  • A warning that legal action will follow if the matter is not resolved
  • Optional mention of interest or late payment compensation, depending on how formal you want to make it

This type of letter is usually not sent by a solicitor — it’s often the last in-house communication before escalating.

Final demand vs letter before action — what’s the difference?

Final Demand Letter Letter Before Action
Can be sent by the creditor themselves Typically sent by a solicitor
Informal but assertive Formal legal communication
May reference legal consequences Explicitly outlines legal action
Can help preserve commercial relationships Signals formal escalation
Often used as a final internal step Often the first legal step

If a final demand has no effect, it’s time to move to a formal letter before action, especially if you want to recover interest, compensation, and legal costs — or issue proceedings.

When should you send a final demand?

A final demand is typically sent:

  • After one or two chaser letters or emails
  • When payment is overdue but not seriously contested
  • Before you escalate to legal action, but want to avoid it if possible

In some cases, it can work well to send a final demand with a deadline of 7 days, followed immediately by a solicitor’s LBA if ignored. This shows you’re giving a fair chance, but not backing down

How FWJ can support

While we don’t always send final demands ourselves, we can:

  • Review or redraft a final demand for you if needed
  • Advise on when to skip this step and go straight to legal action
  • Step in immediately if your final demand is ignored

Sometimes it’s more effective to go directly to a formal solicitor’s letter — especially if the debt is significant or longstanding.

❓ FAQs – final demand letters explained

Is a final demand legally required?
Can I send both a final demand and an LBA?
Should a final demand be on letterhead?
Can FWJ review my final demand before I send it?
What’s the difference between a final demand and a 7-day letter before action?

11. Using a solicitor vs writing it yourself?

When dealing with an unpaid invoice or overdue debt, many businesses and individuals consider writing their own letter before action (LBA). And in some cases — particularly low-value, undisputed debts — that might be enough.

✅But in many situations, a DIY letter lacks the legal force, structure, or professionalism needed to achieve a result. That’s where a solicitor-drafted LBA from Francis Wilks & Jones can make a real difference.

When is it “safe” to write your own LBA?

A self-written LBA may be sufficient when:

  • The debt is small (under £500) and undisputed
  • You’ve had a good relationship with the debtor until recently
  • You want to give them one last informal opportunity to pay
  • You have time to draft, follow up, and escalate yourself

✅If you choose this route, be sure to Include all the key elements (amount, due date, deadline), Keep the tone firm but professional, Avoid emotional language or legal assumptions and send it to the correct legal entity (not just a trading name)

When a solicitor’s letter is the better option

A letter from Francis Wilks & Jones is far more than a “nicer version” of your own draft. It shows the debtor that you are legally represented and prepared to take formal legal action

This alone often triggers immediate payment — especially when interest and compensation are clearly included.

We recommend using a solicitor’s letter if:

  • The debt is significant (typically £1,000+)
  • You’ve been ignored after reminders or a final demand
  • There is any legal complexity or dispute
  • The debtor is a repeat offender
  • You want to recover the maximum amount, including late payment penalties

Additional benefits of using FWJ

  • Fixed-fee pricing with no hidden costs
  • Same-day dispatch for urgent cases
  • Drafting by experienced debt recovery solicitors
  • Accurate inclusion of all legal entitlements (interest, compensation, costs)
  • Rapid escalation if no response is received

Many of our clients find that a letter from FWJ gets results in a matter of days — even when previous reminders have been ignored.

Think of it as a small investment for a much bigger return

Time is money — and chasing debts can drain both. Our clients often tell us they wish they’d involved us sooner.

A professionally drafted FWJ Letter Before Action will save internal time and follow-up, maximises recovery, speed up payment and strengthens your legal position should if court action becomes necessary

❓ FAQs – solicitor vs DIY letters

Can I try a DIY letter first, then use FWJ if it fails?
Will the debtor take it more seriously if it comes from a solicitor?
Is it worth it for small debts?
What if my debtor is also legally represented?
Can FWJ help with follow-up if the letter doesn’t work?

12. The role of the LBA in business debt recovery

For any business that offers credit terms — whether for goods, services, or ongoing contracts — there will inevitably be times when invoices go unpaid. That’s where a letter before action becomes an essential tool in your credit control and debt recovery process.

It’s not just a legal formality. When used correctly, an LBA can improve cash flow, protect business relationships, and avoid the cost and disruption of formal legal proceedings.

Where does the LBA sit in the debt recovery journey?

The LBA is typically used after the following steps:

Invoice issued – with clear payment terms

Friendly reminders sent – via email or phone

Chaser letters or statements issued

Final demand – optional, but often used in commercial relationships

Letter before action – formal legal notice before escalation

Legal action – such as County Court proceedings or statutory demand

The LBA is often the key turning point — the shift from informal chasing to formal legal pressure.

Why it matters for your cash flow

Late payments and bad debts can seriously affect your business. Research from the Federation of Small Businesses and gov.uk shows that:

  • Late payments cause cash flow issues in over 50% of SMEs
  • Over £20 billion is locked up in unpaid invoices across the UK at any time
  • Small firms spend an average of 1 day a month chasing overdue payments

Sending an LBA early can:

  • Reduce the time you spend chasing
  • Improve your average payment time
  • Strengthen your position if things go legal
  • Demonstrate to customers that you enforce your terms professionally

LBA vs other business debt recovery tools

Recovery MethodWhen to UseProsRisks/Costs
Internal chasersEarly stage (1–14 days overdue)Relationship-friendly, low costOften ignored if repeated
Final demandMid stage (14–30+ days overdue)In-house pressure, shows urgencyMay still lack legal weight
LBA (solicitor-drafted)Formal stage (21–60+ days overdue)Legal pressure, fast resultsFixed fee, but often cost-effective
County Court claimPost-LBA, no paymentEnforceable, strong deterrentFiling fees, potential delays
Statutory demand£750+ undisputed debts, urgency requiredTriggers payment or insolvency riskBest used under legal advice

👥 How FWJ supports your wider recovery process

At Francis Wilks & Jones, we:

  • Advise when and how to issue the LBA
  • Handle communication with difficult debtors
  • Escalate matters to court or enforcement quickly if needed
  • Recover interest, costs, and late payment penalties
  • Integrate with your internal finance or credit control teams if needed

Our clients range from small businesses recovering single unpaid invoices, to large corporates chasing high-value, complex debts across multiple jurisdictions.

❓ FAQs – LBAs as part of business debt recovery

Is an LBA suitable for ongoing customer relationships?
What if I have multiple overdue invoices?
Can FWJ manage multiple debts for me?
Will using a solicitor damage the client relationship?
How fast can an LBA be sent?

A letter before action (LBA) is a powerful step — but if it doesn’t result in payment, there are several legal options available to help you recover what you’re owed. Each route has its own benefits, timeframes, and suitability depending on the size and nature of the debt, and the type of debtor.

✅At Francis Wilks & Jones, we advise on the most effective way to escalate based on your situation — saving time, protecting your legal position, and increasing your chances of success. We will know the best option for you based on the strength of you claim and the commercial position you are in.

1. County Court claims

If a debtor fails to respond to your LBA, the next step is often to issue a County Court claim. This is a formal legal claim for the unpaid amount, plus any interest and compensation.

Why use this route?

  • Easy to issue it and it creates a legally enforceable County Court Judgment (CCJ) if successful
  • It can damage the debtor’s credit record – something most debtors want to avoid
  • May prompt immediate payment even before the hearing. Quite a lot of claims pay up on receipt of the claim form.

Process overview:

  • Claim is issued online or via the court. We are linked to the court systems and can issue within 24 hours.
  • Debtor has 14 days to respond (or 28 with acknowledgement)
  • If no acknowledgement or defence is filed, we can request default judgment
  • Once judgment is obtained, enforcement options become available (see below)

✅ FWJ handles everything — from drafting and filing to enforcing judgment where necessary.

📄 2. Statutory demands

A statutory demand is a formal notice requiring payment within 21 days, commonly used for debts over £750. It is often a precursor to insolvency proceedings — such as bankruptcy or winding-up petitions — and carries serious weight.

When is this appropriate?

  • The debt is undisputed
  • You want to show the debtor you’re prepared to start insolvency action
  • The amount owed is over £750 (for individuals or companies)

Benefits:

Whist demand need to be handled with case, they can be a fast, powerful pressure tactic. It really focusses a debtor’s mind. They often lead to swift settlement and no court fee is required to issue – only a process server fee. Indeed a process server turning up at the debtor’s home or office is a very hard hitting sign.

Important to take legal advice: statutory demands should only be used if a debt is undisputed or there is no cross claim. Issuing one in the wrong circumstances can get very complicated and expensive.

Our debt recovery team can ensure the demand is compliant and properly served — maximising effectiveness and making sure all the technicalities are properly covered off. We offer competitive fixed fee pricing for statutory demands.

3. Winding-up and bankruptcy proceedings

If a debtor ignores a statutory demand, you may apply to Wind up a company (threaten it with liquidation) or Bankrupt an individual

These are serious steps and should only be used when:

  • All other recovery routes have failed
  • The debt is large and undisputed
  • The debtor has sufficient assets to justify the process

Our debt recovery team handle these proceedings regularly for clients across the UK — particularly in urgent, high-value or reputationally sensitive matters. Legal advice is very much necessary as these are serious types of court action. Read more about winding up petitions

4. Enforcement options

If you’ve obtained a County Court Judgment (CCJ) but the debtor still doesn’t pay, we can escalate further using legal enforcement. These include:

  • High Court enforcement officers (aka Bailiff / Sheriff)
  • Charging orders (over property)
  • Third-party debt orders (freezing bank accounts)
  • Attachment of earnings (for individuals)
  • Statutory demands (for individuals and companies),
  • Winding up petitions (for companies)
  • Bankruptcy petitions (for individuals)

At FWJ, we review the debtor’s circumstances and choose the most effective enforcement route based on their assets and conduct.  We regularly carry out all of the above types of claim. Read more about your enforcement options in our Fantastic Free Enforcing a Judgment Guide.

❓ FAQs – escalating after a letter before action

Can I skip the LBA and go straight to court?
Is a statutory demand better than a court claim?
How long does a County Court claim take?
Will I recover my legal costs?
Can I switch from one route to another?

The process of sending a letter before action — and pursuing legal recovery of unpaid debts — is supported by several important pieces of legislation in England & Wales. Understanding these legal foundations helps ensure your claim is enforceable, compliant, and properly structured.

At Francis Wilks & Jones, we reference the relevant legislation in every LBA we draft — ensuring your letter carries maximum legal weight and protects your interests throughout. We know the law so you don’t have to worry!

📘 Civil Procedure Rules (CPR)

The Civil Procedure Rules (or “CPR”) govern all civil litigation in England & Wales. Part of these rules includes pre-action protocols, which are formal steps parties are expected to take before court proceedings begin.

Relevant for LBAs:

🔗 View the CPR

🔗 Pre-Action Protocol for Debt Claims (PDF)

💸 Late Payment of Commercial Debts (Interest) Act 1998

The Late Payment Act allows businesses to claim:

  • Statutory interest at 8% above base rate
  • Fixed compensation (£40, £70 or £100 per invoice)
  • Reasonable debt recovery costs if greater than the fixed sum

It’s one of the most important tools for commercial creditors seeking to maximise the value of their claim.

🔗 Late Payment Act 1998 – Full Text
🔗 Government guidance – Charging interest on commercial debts

📜 County Courts Act 1984

This Act governs the powers and processes of the County Court system, which handles the vast majority of debt recovery claims under £100,000.

🔗 County Courts Act 1984 – Full Text

This legislation applies to regulated credit agreements, including consumer loans and hire purchase agreements. It may be relevant where the debt arises under a consumer or credit facility.

🔗 Consumer Credit Act 1974 – Full Text

🛡 Supporting government and regulatory guidance

You may also find useful guidance from:

❓ FAQs – legal frameworks and your rights

Do I need to reference these laws in my LBA?
Does the Late Payment Act apply to all unpaid invoices?
Will a judge expect me to follow the pre-action protocol?
Can I rely on templates that don’t cite legislation?
Can FWJ handle compliance for me?

15. How we help – LBA services from Francis Wilks & Jones

At Francis Wilks & Jones, we’ve helped thousands of clients recover unpaid debts using clear, compliant, and highly effective letters before action.

Whether you’re an SME chasing a few invoices or a national business dealing with persistent late payers, we tailor our LBA services to get results — fast.

What’s included in our LBA service

Review of your documents and debtor background

A solicitor-drafted LBA tailored to your situation

Calculation and inclusion of interest, compensation, and costs

Dispatch via email and post (recorded delivery available)

Tracking and optional follow-up strategy

We can also adapt the tone of the letter — firm or more commercial — depending on whether you wish to preserve the relationship or apply maximum pressure

Types of clients we work with

Our clients include:

  • UK and international SMEs
  • Financiers
  • Individuals
  • professional services businesses, such as accountants
  • Credit control teams needing volume LBA support
  • Collection companies

Whether you need a one-off letter or a long-term debt recovery partner, we’re here to help.

What makes FWJ different?

  • Fixed, transparent pricing — with no hidden fees
  • Drafted by experienced debt recovery solicitors, not bots or generic templates
  • Same-day turnaround where needed
  • Access to full legal escalation if the letter is ignored
  • A proven track record across all industries and sectors

🧠 We know how to prompt payment quickly — and how to pursue enforcement if required. That’s what sets us apart.

❓ FAQs – FWJ’s letter before action service

Can I speak to someone first?
How fast can you send the letter?
Can you send LBAs in bulk for multiple accounts?
What if I’ve already sent a letter myself?

16. Client testimonials and case studies

Nothing speaks louder than real results. Over the years, we’ve helped thousands of clients recover unpaid debts through expertly drafted letters before action — often within days of sending.

Here are just a few examples of what our clients say.

“FWJ got results where others had failed. A single solicitor’s letter and we were paid in full — within 3 days.”
— Owner, Construction Consultancy

“The Francis Wilks & Jones team were professional, responsive, and knew exactly how to handle our debtor. Highly recommended.”
— Director, Technology SME

“We use FWJ for all our pre-action letters. Their name carries real weight and consistently gets our clients to pay.”
— Credit Manager, National Service Provider

Read more:
🔗 Debt Recovery Testimonials

Success stories and case studies

  • £32,000 recovered within 5 days using an LBA and interest claim for a commercial supplier
  • Multiple unpaid invoices recovered in a single letter for a London-based consultancy
  • Immediate settlement after LBA sent to a construction subcontractor — without needing court action
  • High-volume recoveries for a credit control team using batch LBA services with FWJ

Explore more:
🔗 Debt Recovery Case Studies

Key contacts

Andy Wilks

Andy Wilks

Managing Partner

Hardeep Singh

Hardeep Singh

Paralegal

Kerrie Durban

Kerrie Durban

Debt Recovery Manager

View full team

Case studies

View all case studies

Contact us in confidence