# How to chase an overdue invoice

Send a friendly reminder the day after the due date, phone within a week, send a formal letter at two weeks and a final notice at four. Keep every step in writing and offer a payment plan before you stop supply.

Free tool: [Collection letter generator](https://www.pulsify.tech/free-tools/collection-letter-generator/). Build the formal letter and final notice. The payment reminder generator covers the first friendly email.

## Why it matters

Late payers are usually not bad payers. The invoice was lost, stuck in approval or forgotten. A fast, polite follow-up solves most cases.

A fixed schedule means the job gets done. Without one the oldest invoices sit while the work piles up.

## The steps

1. **Check the invoice first.** Is it correct, sent to the right person and not in dispute? Fix any error before you chase.
2. **Send a reminder the day after the due date.** Keep it short and friendly. Attach the invoice and give the payment details.
3. **Phone within a week.** Ask if there is a problem. Ask for a payment date. Write the date down.
4. **Send a formal letter at two weeks.** State the amount, the due date and the new date you expect payment. Say what happens next.
5. **Send a final notice at four weeks.** Say you will pause supply or pass the debt to a collector if payment is not made by a set date.
6. **Offer a payment plan.** If cash is the issue, agree instalments in writing. Get the first payment up front.
7. **Escalate.** Stop credit, use a collection agency or start formal recovery. Get advice before you start legal action.
8. **Record each contact.** Log the date, the person and what was said. You need this if the debt goes further.

## Worked example

Example Plumbing Supplies Pty Ltd invoices Example Builders for A$6,600 on 1 September with 30-day terms. The due date is 1 October.

| Date | Action |
| --- | --- |
| 2 October | Friendly email with the invoice attached |
| 8 October | Phone call, customer promises payment on 15 October |
| 16 October | Formal letter after the promised date is missed |
| 29 October | Final notice with a payment deadline of 5 November |

The customer pays A$3,300 on 4 November and agrees to pay the rest in 14 days. The first payment arrives 34 days after the due date and every step is on record.

## Common mistakes

- Chasing without checking the invoice.
- Waiting more than a week to follow up.
- Threatening action you will not take.
- Not keeping notes of calls.

## Common questions

### When does an invoice become overdue?

The day after the due date on the invoice.

### Can I charge interest on a late invoice?

Only if your terms of trade or your agreement with the customer allow it. Check your terms first.

### When should I stop supply?

When the final notice date passes with no payment or plan. Tell the customer first.

## Next step

Use the [Collection letter generator](https://www.pulsify.tech/free-tools/collection-letter-generator/) first. Then see [how to send customer statements](https://www.pulsify.tech/how-to/send-customer-statements/).

Source: https://www.pulsify.tech/how-to/chase-an-overdue-invoice/ (last checked 2026-10-20)