The fastest way to chase an overdue invoice is a calm, scheduled reminder sequence: a friendly nudge on the due date, a follow-up at 7 days, a firmer notice at 14 days, and a final notice at 30 days that flags escalation. Most invoices are paid after the first or second reminder. If they aren't, your next steps are a letter of demand, a debt collector, or a claim at your state tribunal. This guide gives you the timeline and the wording.
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Before you chase: get the basics right
Chasing is much easier when the original invoice is clear. Make sure it shows the invoice number, the amount due, a specific due date, and your payment details. If any of those are vague, fix them first — a client can't pay an invoice they can't understand. Our guide on how to write an invoice covers the essentials, and tax invoice requirements in Australia explains what a compliant GST invoice must include.
The reminder sequence that works
Sending reminders on a fixed schedule removes the awkwardness — it's just process, not a personal confrontation. Here's a sequence that gets most invoices paid without damaging the relationship.
Day 0 — the due date: a gentle reminder
Assume it's an oversight, because usually it is. Keep it warm and factual.
"Hi [Name], just a quick reminder that invoice [INV-0001] for $[amount] is due today. I've reattached it here for convenience. Could you let me know once it's been processed? Thanks so much."
Day 7 — overdue: a friendly follow-up
Still polite, but now noting the invoice is past due.
"Hi [Name], following up on invoice [INV-0001] for $[amount], which was due on [date] and is now 7 days overdue. If it's already on its way, please ignore this. Otherwise, could you confirm a payment date? Happy to help if there's any issue."
Day 14 — a firmer notice
Direct and businesslike. Restate the facts and ask for a commitment.
"Hi [Name], invoice [INV-0001] for $[amount] is now 14 days overdue. Please arrange payment within the next 3 business days, or let me know if there's a reason it can't be paid so we can sort it out. My payment details are below."
Day 30 — final notice before escalation
Clear, unemotional, and specific about what happens next.
"Hi [Name], invoice [INV-0001] for $[amount] is now 30 days overdue despite previous reminders. This is a final notice. If payment isn't received by [date], I'll have no option but to escalate the matter, which may include a formal letter of demand or referral to a debt collection service. I'd much rather resolve it directly — please get in touch today."
Keep every reminder in writing (email is ideal) so you have a record if you need to escalate later. Pick up the phone in parallel if you have a good relationship — a two-minute call often clears a blockage a dozen emails won't.
When reminders don't work: escalating
Letter of demand
A letter of demand is a formal, final request for payment that states the debt, the deadline, and your intention to take further action if it isn't paid. It isn't legally required, but it's strongly recommended — it gives the debtor one last clear chance and shows you took reasonable steps. Many disputes end here, because a formal letter signals you're serious. business.gov.au has guidance and templates for writing one.
Debt collection
A debt collection agency will chase the debt on your behalf, usually for a percentage of what they recover or a fixed fee. This can be worthwhile for stubborn debts where the relationship is already over. Debt collectors in Australia must follow the ACCC and ASIC debt collection guidelines — no harassment, no misleading conduct — so choose a reputable agency.
State civil tribunals and small claims
For unpaid invoices you can lodge a claim at your state or territory's civil tribunal or small claims court, which are designed to be low-cost and to be used without a lawyer:
- Victoria — VCAT (Victorian Civil and Administrative Tribunal).
- New South Wales — NCAT (NSW Civil and Administrative Tribunal).
- Queensland — QCAT (Queensland Civil and Administrative Tribunal).
- Other states and territories — the Magistrates' or Local Court small claims division (limits and names vary by jurisdiction).
Each has a monetary limit and a lodgement fee, and you'll need your evidence — the invoice, your agreed terms, and your reminder trail. For larger or complex debts, get legal advice before lodging.
Prevent the next one
The best chase is the one you never have to send. Invoice promptly, use short payment terms, ask for deposits on big jobs, and make paying effortless with a PayID or payment link. Clear terms agreed up front, plus a consistent reminder routine, keep most clients paying on time.
This article is general information, not legal advice. Tribunal names, limits and procedures vary by state — check your local tribunal, business.gov.au and the ATO, or speak to a qualified adviser for your situation.
Frequently asked questions
How do you politely chase an overdue invoice?
Start with a friendly reminder that assumes an oversight: restate the invoice number, amount and due date, attach the invoice again, and ask them to confirm payment or a date. Keep the first two reminders warm and factual, and only firm up the tone once the invoice is well past due.
When should I send invoice reminders?
A reliable sequence is a gentle reminder on the due date (day 0), a follow-up at 7 days overdue, a firmer notice at 14 days, and a final notice at 30 days flagging escalation. Sending on a schedule removes the awkwardness and gets most invoices paid without conflict.
What can I do if a client won't pay in Australia?
After your reminder sequence, options include a formal letter of demand, engaging a debt collection agency, or lodging a claim at your state's civil tribunal — VCAT in Victoria, NCAT in NSW, QCAT in Queensland, or the small claims court elsewhere — for amounts under the relevant limit. For larger or complex debts, seek legal advice.
Is a letter of demand legally required before a tribunal claim?
A letter of demand is not strictly required, but it is strongly recommended. It gives the debtor a final clear chance to pay, documents that you took reasonable steps, and often prompts payment on its own before you need to lodge a tribunal or court claim.
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