Debt recovery guide · Adding pressure
Letter before action: what it is, and how to send one that gets paid
A letter before action (LBA) is the formal final demand you must send before starting a court claim — and it's also the single most effective cheap step in debt recovery. It tells the debtor exactly what you're owed, the deadline, and that court proceedings follow without further warning. A large share of debts are paid at this stage, because it converts 'annoyed creditor' into 'imminent claimant'.
What it needs to contain
The amount and how it arises (invoice numbers, dates, the agreement), any interest and compensation claimed, a clear deadline, how to pay, and a statement that court action will follow. Attach or offer the key documents.
If your debtor is an individual or sole trader, the Pre-Action Protocol for Debt Claims applies: you must give more prescribed information, include reply forms, and allow 30 days. For company debtors, 14 days is generally reasonable. Getting this right matters — courts expect it, and a botched LBA hands the debtor delay.
Whose letterhead it arrives on changes what happens
Your own LBA works; a solicitor's or agency's works measurably better, because it proves you've already spent money on escalation. Agencies typically offer this as a low fixed fee — often the most cost-effective single action in collection.
If the deadline passes silently, don't send a second LBA. Repetition teaches the debtor that your deadlines are decorative. Escalate: instruct recovery or issue the claim.
Where this fits in the bigger picture
This is one step of a well-trodden path — demands, statutory add-ons, professional recovery, court, enforcement. The complete debt recovery guide walks the whole process, and the late payment calculator works out what you can add to a commercial debt today.
Related situations
General information, not legal advice.