Pay Chasey

How to chase an unpaid invoice in Australia

Chasing money you are owed is mostly process: steady messages, a written record, and a point where you stop emailing and pick up the phone. This page sets out a timeline you can copy, and the limits on what you may say and do.

Updated 28 September 2026

The short answer

Chase an unpaid invoice with a fixed sequence of short written reminders: one when it falls due, then at day 3, day 10, day 21 and day 35 overdue, each firmer than the last and each repeating the invoice number, the amount and how to pay. Keep every message. Ring once the writing is done, and consider a small claims claim if nothing is paid.

The short version

A written sequence works for two reasons. It is evidence if the matter is ever decided by somebody else, and it gives the client a way to fix the problem without a confrontation. Keep the early messages light and change one thing at each step: the pressure.

StageWhenWhat you send
Due dateOn the day payment is dueNothing yet
Day 3Three days overdueFirst reminder, written as an oversight
Day 10Ten days overdueSecond reminder, asking for a payment date
Day 21Three weeks overdueThird reminder, naming what stops
Day 35Five weeks overdueFinal notice, one date and the next step
After thatWritten chasing has endedA phone call, then a letter of demand or a claim

There is no single correct spacing. A workable default is a nudge in the first few days, a second at around a week, a third at around two or three weeks, and a final notice at about a month.

The timeline, step by step

  1. The day the invoice is due Check the money has not arrived, and that the due date was clear on the invoice. Thirty day terms are common, but the terms you agreed are the ones that apply. If the due date falls on a weekend or public holiday, expect payment on the next business day.
  2. Day 3 overdue Send the first reminder in the same email thread as the invoice. Assume an oversight, because most of the time it is one. Put the invoice number, the amount and the due date in the first two lines, and ask for payment or a payment date.
  3. Day 10 overdue Add one new fact: the amount still outstanding, if a part payment has arrived. Ask for a specific date rather than a general intention to pay, and send it to the same people who received the invoice.
  4. Day 21 overdue Say plainly what happens next if the invoice is not paid: no further work, no further supply, or a hold on the next stage of the job. Only say it if your contract allows it and you will do it.
  5. Day 35 overdue One clear demand: payment of the full amount by a named date, then what you will do if it is not paid. Keep that next step inside what the law allows, then stop the email sequence.
  6. When to stop emailing and ring After the final notice, a call usually does more than another email. Ring during business hours, keep the conversation to the amount and the next step, and write down what was said, with the date and the time. A promise made on the phone should be confirmed in a short email the same day.

Holding four dates in your head is the part that fails. The chasing feature here sends four reminders at 3, 10, 21 and 35 days after the due date, and stops as soon as the invoice is paid. A calendar reminder does the same job.

Why the spacing matters

Even spacing keeps the pressure steady and leaves the client room to respond. Messages sent back to back read as pestering, and they hand the client something to complain about instead of something to pay. Long silences do the reverse: they tell the client the invoice is not a priority.

  • One thread and one contact at every stage. A new thread hides the history.
  • Firmer, not more frequent. Frequency is noise; the content is the pressure.
  • No escalation you cannot carry out. A threat you do not act on costs you credibility on the next invoice.

What to put in each message

  • The invoice number, the amount outstanding and the original due date, in the first two lines.
  • The same payment details every time: bank details printed in the message, or the payment link.
  • A line for the client who has already paid, asking them to ignore the message if payment has crossed with it.
  • A name and an address to reply to. Chasing from a no-reply address is how debts go quiet.

Keep the paper trail

  • The contract, quote or email where the client agreed the price and the payment terms.
  • The invoice, and some proof it reached an address the client gave you.
  • Every reminder, with its date, and any reply.
  • A dated note of every phone call: who you spoke to, what was said, what was promised.

Business records generally have to be kept for five years for tax purposes, which is longer than most disputes run.

When to stop working for a client

Stopping work is a question about the contract, not about the debt. Before you withhold anything, put the notice in writing, name the amount and the date, and say exactly what stops and when. If the client is a company and you think it may be in difficulty, look at its public record early. If the company fails, an unpaid invoice usually leaves you as an unsecured creditor.

When the small claims process starts

Small claims is where a modest unpaid invoice is usually dealt with: a tribunal or a court, a filing fee, a short hearing, and lawyers usually kept out of it. It starts when you decide to apply, not at a set number of days overdue.

  • Which body hears the claim, the money limit and the filing fee depend on your state or territory.
  • Time limits apply to bringing a claim, and they are set by state and territory law.
  • A claim is not something you can take back. If the amount matters, get advice before you lodge it.

The guide to small claims on this site, Small claims by state, sets out the forms, the limits and the fees for each state and territory. If your written chasing has produced nothing and the client has stopped replying, that is the page to read.

What you cannot do when chasing a debt

The Australian Consumer Law puts limits on how a debt may be collected, whether you chase it yourself or hand it to somebody else. A creditor can stay responsible for the conduct of a collector acting for them, even where the collector ignores instructions.

  • No harassment or coercion. Contact has to be for a reasonable purpose and only as often as it needs to happen.
  • No misleading threats. Do not threaten legal action you are not entitled to take, do not intend to take, or have no authority to take.
  • No public shaming. Publishing a client name, a debt or the details of a dispute is not normal collection. It can raise a defamation question under state and territory law, and privacy obligations may apply to your business.
  • No dragging in other people. Ringing a client's customers, family or employer to apply pressure is the conduct these rules exist to stop.
  • No invented charges. Do not add interest or late fees the contract does not provide for.

If the client says they cannot pay

A payment plan you can hold the client to is worth more than a debt you cannot collect. Ask for the amount, the frequency and the start date, put it in writing, and receipt every payment.

A reminder sequence only works if it runs on schedule. This app was built for the chasing part: it writes the invoice, sends four reminders at 3, 10, 21 and 35 days after the due date, and stops the moment the invoice is paid. It does not recover debts and it is not a collection or legal service. Free plan: three invoices a month, no card required.

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Questions people ask

How many reminders should I send before I stop emailing?
Three reminders and a final notice is enough. That is roughly day 3, day 10, day 21, and a final notice around day 35. After the final notice, a second notice in the same words adds nothing. Move to a phone call, then a letter of demand, then a claim.
Should I charge interest or late fees on an overdue invoice?
Only if your terms provide for it, and only at the rate those terms set. Adding interest or a late fee the contract does not allow misstates the debt, and the national guideline for collectors and creditors treats representations about the status of a debt as a compliance issue. Get advice before you add a charge.
Can I tell a client I will take them to court?
Only if you are entitled to take that action and intend to. The guideline for collectors and creditors states plainly that you must not threaten action you are not legally permitted to take, have no intention of taking, or have no authority to take. A bluff that is never followed up can itself be misleading conduct.
Can I list a client who has not paid, or post about it?
Not as a tactic. Naming the client publicly is not part of normal collection. Whether what you publish is defamation depends on the state or territory and on what you have said, and privacy obligations may apply to your business as well. Harassing or intimidating a debtor is also conduct the consumer law prohibits.
Is it legal to stop working for a client who has not paid?
That depends on your contract and on the law in your state or territory, so it is a question for advice rather than a rule of thumb. Read the terms you agreed, give the client written notice of what stops and when, and keep meeting any obligation to supply something essential.
How long do I have to chase an unpaid invoice before a claim is too late?
Time limits apply to most claims for money owed, and the period differs between states and territories. A part payment or a written acknowledgement can also change the position. Check the rules for your state or territory and get advice rather than assuming a debt stays recoverable indefinitely.

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