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How to chase unpaid invoices in Australia

By Yamate · Last updated August 2026

The short version: chase on a schedule, not your mood. Send a friendly reminder the day after it's due, a firmer one at 7 days, a final notice at 14 days, and a letter of demand around 30 days. Most overdue invoices are simply forgotten, and settle after the first or second reminder.

Where are you up to?

Put in the due date. We'll work out what to send.

The date on the invoice, not the day you sent it.
Leave it blank and the drafts just won't mention a figure.

This is general information, not legal advice. Charging interest or a late fee depends on the terms your customer agreed to. Nothing here promises you will get paid.

Let Yamate run this schedule for you →

When do I chase an unpaid invoice?

  1. Day after due
    Friendly reminder — “just a heads up this one’s due”
    Warm, assume they forgot
  2. 7 days over
    Firmer reminder + payment link
    Polite but clear
  3. 14 days over
    Final notice before further action
    Firm, factual
  4. ~30 days over
    Letter of demand
    Formal
  5. 60+ days
    Debt collector or small-claims tribunal
    Last resort

The trick is that the messages keep coming on a clock. Customers who'd happily let a one-off reminder slide tend to pay when they realise the follow-ups won't stop.

What should each reminder say?

The wizard above writes all five with your dates already in them. If you'd rather write your own, this is what each one is for.

1. The friendly reminder (day after due)

Assume they forgot, because most of the time they did. Name the invoice, name the due date, give them a way to pay in the same message. No apology and no pressure — this one is admin, not a confrontation.

2. The firm reminder (7 days)

Ask a direct question that needs an answer: when will it be paid? A reminder that only restates the balance is easy to ignore; one that asks for a date puts the next move on them. Still polite, still short.

3. Final notice (14 days)

Factual, and it says what happens next. Give a specific deadline, invite them to tell you if something's wrong with the invoice, and only mention a step you're actually willing to take. Don't threaten debt collectors or credit listings you have no intention of using — it's the fastest way to lose both the money and the customer.

Keep all of it in writing (text or email). If it ever goes further, a clear paper trail of polite, dated reminders is exactly what you'll want.

💡 This is the bit Yamate does for you. Instead of remembering who's overdue and what to say, Yamate can draft each reminder for you to review and send, or you can switch selected payment reminders on to send automatically on a schedule by text. Either way it pauses the moment a customer replies, and stops as soon as they pay. You set it once and chase nothing by hand.

What if they still won't pay?

Send a letter of demand

A letter of demand is a formal, written request for payment that spells out what's owed, for what, and what happens if they don't pay by a date. It's not a court document, but it shows you're serious and is usually the nudge that works. The Australian Government has free guidance and a template at business.gov.au.

Get help with the dispute

If a letter of demand doesn't land, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) offers free assistance to small businesses chasing payment, including low-cost dispute resolution. Their guidance on what to do when you haven't been paid is a good starting point.

Small claims court or tribunal

Every state and territory has a low-cost path for unpaid debts — but it is not always a tribunal. Queensland runs minor debt through QCAT and the ACT through ACAT, while South Australia, Western Australia and Tasmania run it through the Magistrates Court, and NSW splits it: a straight debt goes to the Local Court, a residential building dispute to NCAT. Pick your state in the tool above and it names the right body and links you straight to it. A debt collection agency is the other option, though they take a cut. Both are last resorts — the steps above settle the large majority of unpaid invoices well before this.

How do I stop invoices going overdue?

  • Invoice the day you finish — the longer the gap, the colder the lead. Send it from your phone before you leave site.
  • Take a deposit on bigger jobs so you're never fully exposed.
  • Make paying stupidly easy — put a PayID, bank details or pay link right on the invoice. Friction is why people delay.
  • Set clear terms — "due in 7 days" beats "due on receipt" for actually getting paid, because it gives a concrete date to chase from.
  • Automate the follow-ups so a busy week never means an invoice slips.
Let Yamate chase your overdue invoices automatically →

Let the chasing happen without you

The timeline works. Remembering it on day 7, 14 and 30 across eleven invoices does not. Yamate works the schedule for you: it drafts each reminder and waits for you to read it before anything sends, or you can switch that reminder on to send automatically.

Set up chasing in Yamate → Free to try · no card · sign in with a link, no password to remember

FAQ

How long should I wait before chasing an unpaid invoice?

Don't wait — send a friendly reminder the day after it's due. The sooner and more consistently you follow up, the faster you get paid. Most invoices are settled after the first or second reminder.

Can I charge interest or a late fee on an overdue invoice?

You can if your payment terms set it out and the customer agreed to them up front. It's a useful nudge, but be reasonable and check your obligations — see our guide on charging interest on late invoices.

What's a letter of demand?

A formal written request for payment stating what's owed and what happens if it isn't paid by a set date. It's often the step that finally gets you paid. There's a free template at business.gov.au.

Is it rude to chase a customer for payment?

No — you did the work, you're owed the money. Polite, scheduled reminders are normal business, and a clear, friendly system actually protects the relationship better than an awkward silence followed by a blow-up.

Free tools to help you get paid

Free invoice generator GST calculator PayID for tradies Tax invoice requirements Chasing a quote instead?

General information for Australian businesses, not legal or financial advice. Dispute processes and tribunal thresholds vary by state and change over time — check business.gov.au, ASBFEO, or your state tribunal for your situation.