UK Debt Collection for Foreign Creditors: How to Get Paid by a UK Company in 2026

A practical guide for suppliers outside the UK: what to check, what the law lets you add to the invoice, and which pressure points make a UK company pay.

Luca makes tiles in Bologna. Daniel, in Manchester, bought forty thousand pounds of them. The invoice, Daniel explained, was in the post. It was not in the post.

If you are a supplier outside the United Kingdom and a British customer has stopped paying, you are in good company. The UK is one of the most attractive markets in the world to sell into, with a stable legal system, strong commercial courts and a public register of every limited company. It is also a market with its own rules, its own vocabulary and a few procedural traps that catch foreign creditors every week.

This guide explains how UK debt collection works when the creditor is based abroad: what to check first, what the law entitles you to add to the invoice, which pressure points actually move a UK company to pay, and where foreign creditors most often lose time.

This article is general information, not legal advice. The rules below describe England and Wales unless stated otherwise.

Why UK debt collection is different when you are abroad

The first surprise for many foreign creditors is that the UK is not one legal system but three: England and Wales, Scotland, and Northern Ireland. Each has its own courts and procedures. A debtor registered in Manchester is pursued under English procedure; a debtor in Glasgow is pursued in the Scottish courts, under different rules and different time limits.

The second surprise is practical. The government's online court service, Money Claim Online, lets creditors issue specified money claims against a defendant in England or Wales without paper forms. However, the claimant must have an address for service in the United Kingdom. A tile maker in Bologna, a machine builder in Stuttgart or a distributor in Dubai cannot simply log in and sue. The claim has to be issued on paper, through UK solicitors, or through a UK partner who can accept service of documents.

The third difference is cultural rather than legal. British business correspondence is polite, indirect and, in the early stages, easy to ignore. Eleven courteous reminders from overseas rarely achieve what one precise letter from a London address achieves. Distance itself is a signal: a debtor who believes the creditor is too far away to act will often simply wait.

None of this makes the UK a difficult place to recover money. It makes it a place where the right sequence matters.

Step 1: Check the debtor at Companies House

Before sending anything, look the company up on Companies House, the free public register of UK companies. In five minutes you can confirm:

The exact legal name and company number. Invoices are often addressed to a trading name. Claims and statutory demands must name the legal entity.
The registered office address. This is where formal documents are served, and it is frequently not the address on the letterhead.
Company status. "Active" is good news. "Active – proposal to strike off" means the company may soon be dissolved, and you may need to object to the strike-off to preserve your claim. "Liquidation" or "Administration" means you should file a claim with the insolvency practitioner rather than chase the company directly.
Overdue accounts or confirmation statements. A company that is late with its filings is often late with its payments too. It is also a company that does not want attention, which is useful leverage.
Directors and charges. Who runs the business, and whether its assets are already pledged to a bank.

This is exactly what Priya does first in our film. It costs nothing, and it shapes every step that follows. For debtors who hide behind layers of companies, a deeper debtor investigation is worth the time.

Step 2: Send a proper letter before action

English courts expect creditors to try to resolve a dispute before going to court. For business-to-business debts, the relevant rules are the Practice Direction on Pre-Action Conduct, which requires a clear letter setting out the claim and giving the debtor a reasonable period to respond. Fourteen days is normal between businesses. If the debtor is a sole trader or an individual, the more detailed Pre-Action Protocol for Debt Claims applies, with a 30-day response period and prescribed enclosures.

A good letter before action for a UK company should:

Identify the legal entity and company number correctly.
List the invoices, dates, amounts and currency.
Add the statutory interest and compensation you are entitled to (see Step 3).
State a firm deadline and the action you will take if it passes.
Come from a UK address, ideally from a collector or solicitor who can actually take that action.

Skipping this step is not just impolite. A creditor who issues proceedings without proper pre-action conduct can be penalised in costs even after winning.

Step 3: Add statutory interest and compensation

Many foreign creditors do not know that UK law may entitle them to add substantial sums to an overdue invoice. Under the Late Payment of Commercial Debts (Interest) Act 1998, a business supplying goods or services to another business can claim:

Statutory interest at 8% above the Bank of England base rate. The base rate that applies is the one in force on 30 June or 31 December before the debt fell due. With the base rate at 3.75%, debts that became overdue between July and December 2026 carry interest at 11.75% a year, simple interest, calculated daily.
Fixed compensation per invoice: £40 for invoices up to £999.99, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.
Reasonable recovery costs above those fixed sums, where they can be justified.

Two points matter for foreign creditors. First, the Act is designed for contracts governed by the law of a part of the UK. If your terms say the contract is governed by Italian, German or French law, the position is more complicated, and the answer depends on the contract. Second, the Act applies only where the contract does not already provide a "substantial remedy" for late payment. If your own terms set a contractual interest rate, that rate generally applies instead.

Change is also coming. The Small Business Protections (Late Payments) Bill, introduced to Parliament on 19 May 2026, would make statutory interest mandatory in commercial contracts, cap most payment terms at 60 days where large businesses pay smaller suppliers, and set deadlines for disputing invoices. It is not yet law, and implementation is expected from 2027, but debtors who read the business press know which way the wind is blowing.

The effect of adding interest is psychological as much as financial. A £40,000 invoice that quietly becomes £40,100 plus 11.75% a year stops being a low-cost loan the debtor has granted itself.

Step 4: The statutory demand

For debts owed by a company, English insolvency law provides one of the most effective pressure tools in Europe: the statutory demand, under section 123 of the Insolvency Act 1986.

If a company owes an undisputed debt of £750 or more, the creditor can serve a formal statutory demand at the company's registered office. The company then has 21 days to pay, secure or compound the debt. If it does not, the creditor can present a petition to wind the company up on the grounds that it cannot pay its debts.

Few directors want to explain a winding-up petition to their bank, their other suppliers or their customers, which is why a properly served statutory demand often produces payment long before the 21 days are over. In our film, Daniel manages it in about four seconds.

Used carelessly, however, it backfires. A statutory demand is only appropriate for debts that are genuinely undisputed. If the debtor has raised a real dispute about the goods, the quality or the amount, the company can seek an injunction to stop a petition, and the creditor may be ordered to pay the costs. Statutory demands against individuals and sole traders follow different rules, with a £5,000 threshold for bankruptcy.

Step 5: Issuing a court claim

If the debt is disputed, or the debtor still does not pay, the next step is a County Court or High Court claim, usually as part of a wider legal debt recovery strategy. For foreign creditors, the key points are:

Money Claim Online is available only with a UK address for service. Without one, the claim is issued on paper (form N1) or through a UK representative.
Claims are allocated to tracks by value. The small claims track generally covers claims up to £10,000, the fast track up to £25,000, the intermediate track up to £100,000, and the multi-track above that. Costs recovery varies by track, so the right strategy for a £6,000 invoice is not the right strategy for a £60,000 one.
You can claim in a foreign currency. English courts can give judgment in the currency of the contract, which protects creditors from exchange-rate losses between invoice and payment.
Undefended claims can be quick. If the company does not respond to a properly served claim, the creditor can request judgment in default, often within weeks.

Step 6: Enforcing a UK judgment

A judgment is a piece of paper until it is enforced. Common routes in England and Wales include:

High Court Enforcement Officers. County Court judgments of £600 or more can be transferred to the High Court for enforcement by a writ of control, which allows goods to be seized.
Third party debt orders, which freeze and capture money held in the debtor's bank account.
Charging orders over property owned by the debtor.
Winding-up petitions, which remain available once a debt is established by judgment.

Which route works depends on what the debtor owns, and that is where local investigation pays for itself.

Already have a judgment from your home court?

Since Brexit, EU judgments no longer travel automatically to the UK under the Brussels regime. The gap has been partly closed. The Hague Judgments Convention 2019 entered into force for the UK on 1 July 2025. It allows judgments from other contracting states, including EU member states except Denmark, to be recognised and enforced in the UK, provided the original proceedings began on or after 1 July 2025. In England and Wales the judgment is registered with the court and can then be enforced like an English judgment.

For older judgments, the route depends on the country. Some, such as France, Germany, Belgium, Austria and the Netherlands, are covered by older bilateral legislation. Others require a fresh action in England based on the foreign judgment. Where there is a choice, it is often faster to pursue the debt directly in the UK than to litigate at home and enforce afterwards. Our guide on how to collect debt from overseas business clients covers the wider strategy.

Time limits foreign creditors should know

Debts do not stay recoverable forever. In England and Wales, and in Northern Ireland, a claim for a contract debt must generally be brought within six years of the date the payment was due. In Scotland, most commercial debts prescribe after five years. Acknowledgments and part-payments can restart the clock in England and Wales, but relying on that is risky. The practical rule is simpler: the older the invoice, the harder the recovery, long before any legal deadline arrives.

A quick checklist for foreign creditors

Confirm the debtor's legal name, number, status and registered office at Companies House.
Check which law governs your contract and whether it sets its own interest rate.
Calculate statutory interest and compensation if the Late Payment Act applies.
Send a letter before action from a UK address with a firm 14-day deadline.
Use a statutory demand only for undisputed company debts of £750 or more.
Issue proceedings through a UK route if Money Claim Online is not available to you.
Plan enforcement before you win, not after.

How INTERCOL helps foreign creditors recover UK debts

INTERCOL is an international debt collection agency in London, with its office at 128 City Road. For foreign creditors, we act as the UK address, the local voice and the escalation route in one.

We check the debtor at Companies House and beyond. We send formal demands on London letterhead, calculate statutory interest and compensation where the law allows it, and escalate through statutory demands, court claims and enforcement when a debtor needs more than a letter. We speak to your debtor in their language and in the language of UK procedure, and we report to you in yours.

We work on a no cure, no pay basis: if we do not recover, you do not pay a commission. Tell us about your case and we will assess it free of charge.

Frequently asked questions

Can a foreign company use Money Claim Online to sue a UK debtor?

Only if it has an address for service in the United Kingdom. Otherwise the claim must be issued on paper or through a UK representative such as a solicitor or collection partner.

How much interest can I add to an overdue UK invoice?

If the Late Payment of Commercial Debts (Interest) Act 1998 applies and your contract does not set its own rate, statutory interest is 8% above the Bank of England base rate. For debts falling due between July and December 2026 that is 11.75% a year, plus fixed compensation of £40, £70 or £100 per invoice depending on its size.

What is a statutory demand, and when can I use one?

It is a formal demand under the Insolvency Act 1986 giving a debtor company 21 days to pay an undisputed debt of £750 or more. If the company does not pay, the creditor can petition to wind it up. It should not be used where the debt is genuinely disputed.

Can I enforce my Italian, German or French judgment in the UK?

Often, yes. Under the Hague Judgments Convention 2019, judgments from EU member states (except Denmark) in proceedings started on or after 1 July 2025 can be registered and enforced in the UK. Older judgments depend on bilateral legislation or a fresh English action.

How long do I have to recover a debt from a UK company?

Generally six years from the due date in England, Wales and Northern Ireland, and five years in Scotland. In practice, recovery rates fall sharply as a debt ages, so it pays to act early.

Marcus Ellerton writes for INTERCOL on cross-border commercial recovery. INTERCOL, 128 City Road, London EC1V 2NX. No cure, no pay.