How do I chase an overdue invoice as a tradie?

Chase an overdue invoice in stages: a friendly reminder the day after the due date, a firmer second notice about a week later, then a final notice with a deadline. If that fails, send a letter of demand. Most tradies get paid at the first or second message, so start early and keep it polite.

When should I chase an overdue invoice?

Send the first reminder the day after the due date, not three weeks later. Most late payers forgot, or the invoice got buried in an inbox. A quick nudge fixes that and costs you nothing.

A simple schedule that works for most jobs:

When	What to send	Tone
1 day overdue	Friendly reminder with the invoice attached	Light
7 days overdue	Second notice, mention any late fee	Firm
14 days overdue	Final notice with a hard deadline	Serious
21+ days overdue	Letter of demand	Formal

Pick the due date first. If your terms are vague, the chase is harder, so read payment terms for tradies and put the due date on every invoice.

What should a friendly payment reminder say?

State the invoice number, amount and due date, and make paying easy. Keep it short enough to read on a phone.

Hi [Name], just a quick reminder that invoice [#123] for $[amount] was due on [date]. You can pay by bank transfer to [BSB / account] using [#123] as the reference. If you've already paid, thanks, and please ignore this. Cheers, [Your name]

Attach the invoice again. People rarely go looking for the original.

What should a second overdue notice say?

Be specific and calm. Repeat the amount and original due date, say how many days it is overdue, and ask for payment by a set date.

Hi [Name], invoice [#123] for $[amount] is now [7] days overdue. Could you please pay by [date]? If there's a problem with the invoice or the work, call me on [number] and we'll sort it out. A late fee of [$X / X%] applies after [date] as per our agreed terms.

Only mention a late fee if it was in your quote or terms before the job started. A fee you invent afterwards is hard to enforce and sours the relationship.

What goes in a final notice?

Say it is the final notice, give a deadline of about seven days, and state what you will do next. Don't threaten anything you won't actually do.

Hi [Name], this is a final notice for invoice [#123], $[amount], now [14] days overdue. Please pay in full by [date]. If I don't receive payment or hear from you by then, I'll send a formal letter of demand and consider further recovery action. I'd rather not do that, so please get in touch today.

Phone the customer as well. A two-minute call often gets a straight answer ("payroll runs Friday") that an email never will. Follow up the call in writing so you have a record.

When do I send a letter of demand?

Send a letter of demand when your final notice deadline has passed with no payment and no good reason. It is a formal written request for the full amount by a final date, usually seven days.

Business.gov.au publishes a letter of demand template that demands the invoiced amount, plus any late-payment interest your contract allows, within seven days and says further recovery action may follow. Include:

• the amount owed and the invoice numbers
• a short description of the work
• the original due date
• a final payment deadline
• how to pay

It carries more weight if it comes from a solicitor or debt collection agent, though you can send it yourself. Expect it may strain the relationship, so use it once friendly chasing has genuinely failed.

What if they still don't pay?

Only a court or tribunal can order someone to pay a disputed debt. According to the Queensland Small Business Commissioner, no government department or commissioner can force payment, with construction payment disputes the main exception. Your options after a letter of demand are:

• Mediation. Your state small business commission may offer free or low-cost mediation before you go to court.
• A debt collector. They usually take a percentage of what they recover.
• A court or tribunal claim. Small claims processes differ by state, so check your local one for fees and limits.
• Statutory demand. This is a formal step that only applies when the debtor is a company, and defects can invalidate it, so get a lawyer to check it first.

If you do building work, separate security of payment rules may apply, with strict and short deadlines. Get advice quickly rather than waiting.

How do I stop chasing invoices in the first place?

Make paying hard to forget and easy to do. Tradies who rarely chase usually do the same few things:

1. Send the invoice the same day the job finishes.
2. Put the due date, bank details and a payment link on it.
3. Take a deposit on bigger jobs (see our quote vs estimate guide for agreeing the price upfront).
4. Write late fee terms into the quote.
5. Follow up on a schedule instead of when you remember.

Invogo helps with the last one. The Pro plan (A$9.99/month or A$99.99/year) includes payment reminders and payment tracking, so you can see which invoices are overdue without a spreadsheet. The free plan covers 5 invoices or quotes a month with no card needed, and every invoice carries your ABN and GST automatically. You can start free here. Tradies in building trades can also see the builders invoicing guide for progress payments.

This is general information, not legal advice. Check with a solicitor, your state small business commissioner or your accountant before taking recovery action.