Yamate
YamateGetting paid › Chasing unpaid invoices

How to chase unpaid invoices in Australia

The short version: chase on a set schedule, not your mood. Send a friendly reminder the day after it's due, a firmer one at 7 days, a "final notice before further action" at 14 days, then a letter of demand around 30 days. Keep every message polite and on the record — most invoices get paid at the first or second nudge.

Nearly every solo tradie has money sitting out there that should be in their account. The job's done, the customer's happy, and somehow the invoice just… sits. The fix isn't being pushy — it's being consistent. A calm, predictable escalation gets you paid faster and keeps the relationship intact.

The chase timeline that works

WhenWhat you sendTone
Day after dueFriendly reminder — "just a heads up this one's due"Warm, assume they forgot
7 days overFirmer reminder + payment linkPolite but clear
14 days overFinal notice before further actionFirm, factual
~30 days overLetter of demandFormal
60+ daysDebt collector or small-claims tribunalLast 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 to actually say (steal these)

1. The friendly reminder (day after due)

Hi [name], just a quick heads up that invoice #[no] for [$amount] was due yesterday — easy to miss! You can pay here: [link]. Cheers, [your name].

2. The firm reminder (7 days)

Hi [name], invoice #[no] for [$amount] is now a week overdue. Could you let me know when I can expect payment? Pay here: [link]. Thanks, [your name].

3. Final notice (14 days)

Hi [name], invoice #[no] ([$amount]) is now 14 days overdue. If it's not settled within 7 days I'll have to pass it on for further action. I'd much rather sort it directly — please pay here: [link] or call me.

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, the app sends these reminders automatically on a schedule by text, pauses the moment a customer replies, and stops as soon as they pay. You set it once and chase nothing by hand.

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 tribunal or debt collection

For amounts that justify it, each state and territory has a low-cost tribunal or small-claims court for unpaid debts (for example NSW's NCAT, Victoria's VCAT, Queensland's QCAT). Thresholds and processes differ by state, so check your local tribunal. A debt collection agency is the other option, though they take a cut. Both are last resorts — the steps above resolve the large majority of unpaid invoices well before this.

Stop it happening in the first place

  • 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 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 →

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

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.