# How do I chase an overdue invoice as a tradie? > A step-by-step schedule for chasing overdue invoices in Australia, with copy-and-paste reminder, second notice and final notice templates, plus what to do if the customer still won't pay. Source: https://www.invogo.com.au/resources/chase-overdue-invoices-australia Category: Getting Paid | Published: 2026-10-19 | Author: Invogo Team ## Key takeaways - Send the first reminder the day after an invoice is due, then a second notice about 7 days later and a final notice with a deadline around 14 days overdue. - A letter of demand is the formal step after a final notice fails, and it usually gives the debtor seven days to pay. - Only a court or tribunal can order payment of a disputed debt; no government agency can force a customer to pay an invoice. - Late fees are only enforceable if they were in your quote or terms before the job started. - Invogo's Pro plan (A$9.99/month) includes payment reminders and payment tracking for overdue invoices. 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](/resources/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](https://asbfeo.gov.au/sites/default/files/2025-03/Letter%20of%20demand%20template_business.gov_.docx) 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](/resources/quote-vs-estimate-for-tradies) 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](/signup). Tradies in building trades can also see the [builders invoicing guide](/resources/invoicing-guide-builders) 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.* ## Frequently asked questions ### Can I charge interest on an unpaid invoice? Only if your quote or contract said so before the work started. Put the late fee or interest rate in writing upfront. ### Should I stop work if a customer hasn't paid? For staged jobs, your contract should say work can pause if a progress payment is late. Check the contract or get advice first, especially for building work. ### Should I phone or email about an overdue invoice? Do both. A call often gets a quick answer, then follow up in writing so you have a record. ### Can I use a debt collector? Yes. Collectors usually take a percentage of what they recover, so compare that cost to the invoice amount first. ## Sources - [Letter of demand template (business.gov.au)](https://asbfeo.gov.au/sites/default/files/2025-03/Letter%20of%20demand%20template_business.gov_.docx) - [Unpaid Invoices: Practical Steps to Help You Recover What's Owed (Queensland Small Business Commissioner)](https://www.qsbc.qld.gov.au/small-business-help/dispute-insights-case-examples/unpaid-invoices-practical-steps-to-help-you-recover-whats-owed)