Automated Letters Before Action That Get Invoices Paid
AutoSettle generates professional, legally-referenced Letters Before Action with statutory interest calculations, fixed compensation, and full invoice breakdowns — sent automatically when your AI controller escalates.
67% of debtors settle after receiving an LBA. Don't go straight to solicitors — escalate with AutoSettle first.
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67%
of debtors pay after receiving an LBA
14 days
standard response deadline
£40–£100
fixed compensation per invoice
8%+BoE
statutory interest rate applied
Why most businesses lose money on late invoices
You've sent reminders. You've called. You've waited. The debtor is still ignoring you — and every day that passes costs you money in lost cash flow and accruing interest you're entitled to claim.
Reminders get ignored
After 3-4 follow-ups, debtors know you're not escalating. Friendly emails become white noise they delete without reading.
Statutory rights unclaimed
UK law entitles you to interest and compensation on every overdue B2B invoice — but most businesses never claim it.
Solicitors are expensive
Instructing a solicitor costs £500-£2,000+ before any recovery happens. Most SMEs can't justify the risk on mid-value debts.
A formal demand that debtors take seriously
AutoSettle's Letter Before Action is a professional, print-ready PDF document that references UK legislation, includes precise financial calculations, and gives debtors a clear 14-day deadline to pay.
Full creditor details
Company name, address, registration number, VAT number, and contact details — pulled from your workspace or custom letter settings.
Debtor identification
Debtor company name, first name, and postal address — synced from your accounting data for envelope-ready formatting.
Invoice-by-invoice breakdown
Every overdue invoice listed individually with original amount, days overdue, statutory interest accrued, and fixed compensation.
Statutory interest calculations
Bank of England base rate + 8% calculated daily per invoice under the Late Payment of Commercial Debts (Interest) Act 1998.
Fixed compensation tiers
£40, £70, or £100 per invoice based on debt value — automatically applied per the statutory compensation schedule.
14-day payment deadline
Clear, unambiguous deadline with consequences outlined — referencing the Pre-Action Protocol for Debt Claims.
Professional, legally-referenced, print-ready
Every LBA generated by AutoSettle follows a structured format designed to maximise impact. The document is formatted for A4 paper with precise positioning for standard DL window envelopes.
- Your company logo and branded header
- Debtor address positioned for window envelopes
- Invoice-by-invoice table with interest calculations
- Grand total including principal, interest, and compensation
- 14-day payment deadline with consequences
- Late Payment Act 1998 and Pre-Action Protocol references
- Unique case reference for audit trail
Your Company Ltd
123 Business Street
Manchester, M1 2AB
21 March 2026
Reference: AS-LBA-MN0XOC7U
Acme Industries Ltd
Unit 7 Industrial Park
Salford, M5 4EE
FORMAL LETTER BEFORE ACTION
Interest calculated at 11.75% p.a. (BoE base rate 3.75% + 8%) under the Late Payment of Commercial Debts (Interest) Act 1998. Fixed compensation applied per statutory schedule.
Generated, sent, and archived without lifting a finger
AutoSettle handles the entire LBA lifecycle — from generation to delivery to archiving — as part of your automated recovery workflow.
Auto-triggered at Stage 9
When your AI controller reaches the LBA stage, the document is generated and attached to the escalation email automatically.
Attached to chaser emails
The PDF is base64-encoded and sent as an attachment — your debtor receives a professional letter alongside the email notification.
Archived & downloadable
Every generated LBA is stored in your LBA Documents hub with full metadata, searchable by debtor, reference, or date.
Customisable sender details
Override company name, address, email, phone, and logo via Letter Settings — perfect for trading names or divisional branding.
Print-ready A4 layout
20mm margins, DL window envelope-compatible address positioning, and professional typography — ready for physical post if needed.
Case reference tracking
Each LBA gets a unique reference (AS-LBA-XXXXXXX) for audit trails, follow-up correspondence, and legal evidence.
From overdue invoice to formal demand — automatically
Invoice goes overdue
Your accounting data syncs to AutoSettle. The system identifies invoices past their due date and begins the recovery sequence.
AI chasing begins
Your AI controller (Ruby, Mason, or Alex) sends graduated reminders — from friendly nudges to firm demands across multiple stages.
Escalation triggers
After standard chasing is exhausted, the system enters pre-legal stages. At Stage 9, a formal Letter Before Action is generated.
LBA generated & sent
A professional, print-ready PDF is created with full financial calculations, attached to the escalation email, and archived in your hub.
Debtor responds or case escalates
Most debtors settle at the LBA stage. If not, the system progresses to Final Pre-Legal Notice and optional solicitor referral.
Your legal rights on late payment
The Late Payment of Commercial Debts (Interest) Act 1998 gives UK businesses the right to charge interest and claim fixed compensation on overdue B2B invoices. AutoSettle enforces these rights automatically.
Statutory Interest
Bank of England base rate + 8% per annum, calculated daily from the day after the invoice due date. Currently 11.75% per annum.
Fixed Compensation
Under £1,000
£40
£1,000 – £9,999
£70
£10,000+
£100
Pre-Action Protocol
Letter of Claim
A formal letter stating the amount owed, how it's calculated, and the deadline for response.
14-Day Response Period
The debtor is given at least 14 days to respond, pay, or propose a payment arrangement.
Proportionate Action
Legal proceedings should only be initiated after all reasonable steps to resolve have been taken.
Important: AutoSettle is a technology platform, not a law firm. LBA documents are pre-legal business communications — not solicitor correspondence. They reference relevant legislation but are issued by you as the creditor.
Part of the complete recovery engine
The Letter Before Action is one stage in AutoSettle's full automated recovery lifecycle.