How to chase an unpaid invoice and keep the customer

A late payment is often just an oversight. The invoice went to the wrong inbox, or the person who pays the bills is away. So start with a friendly reminder, and only get firmer if that doesn't work.

Check what was agreed

Before you chase, look at the quote or contract for the due date, how they were meant to pay and anything agreed about late payment. If the deal was done over the phone, keep the texts or emails that show it.

Start early and keep it friendly

Don't wait weeks. In New Zealand, business.govt.nz suggests an email two business days after the due date and a phone call after a week with no reply. In Australia, when you invoice a larger business, the small business ombudsman suggests contacting its accounts area once payment is 1 to 2 days overdue.

Keep the first reminder short. Give the invoice number, the amount, the due date and how to pay. If it was a big job, offer a payment plan. Make paying easy.

Know the lines you can't cross

The ACCC and ASIC debt collection guideline covers a business chasing its own customers, not just collection agencies. It recommends no more than 3 contacts a week or 10 a month. Phone only between 7:30am and 9pm on weekdays and 9am to 9pm on weekends, and never pressure a customer through their partner or family.

When reminders don't work

Then put it in writing with a letter of demand. Say how much is owed, what it's for and the date to pay by. Only mention action you're prepared to take, and only add interest if your contract allowed it. A debt collector usually charges 5% to 30% of the debt. Past that, a small claims court or tribunal can hear it.

Our guide has the full steps, the contact rules and where to lodge a claim in each state: How to chase an unpaid invoice.

Make the next one easier

Put payment terms on every quote and invoice. Say how you want to be paid, by when, and what happens if it's late. Invoice as soon as the work is done, split long jobs into smaller payments, and give customers more than one way to pay.

Let the reminders go out on their own

Turn reminders on in Tradies Line and unpaid invoices get followed up for you. It sends three emails, then, once TradiesLine Pay is connected, two texts and up to five short AI calls that text the pay link. It stops as soon as the invoice is paid.