The invoice went out 30 days ago. You sent a polite reminder. It was opened. Twice.
No reply.
Now you're stuck between not wanting to seem pushy and needing that money to pay your own bills. So you do nothing for another week, and feel worse.
Here's the plan I'd follow, step by step, so you can stop overthinking it and start getting paid.
Short answer: check what your contract says, send a friendly reminder, then a firm follow-up that quotes your payment terms. If that doesn't work, pause work if your contract allows it, then send a letter of demand. Mediation or your state's small claims tribunal is the last step, not the first.
- What to check before you chase anyone
- The six steps from friendly reminder to small claims
- What to do if the client says the work wasn't right
- The contract clauses that stop this happening again
- Common mistakes that make it harder to get paid
Table of contents
- Why do clients stop paying?
- What should you check before you chase?
- How do you get a client to pay? Six steps
- What if the client disputes the work?
- What mistakes make it harder to get paid?
- How do you stop it happening again?
- Frequently asked questions
- What should you do today?
Why do clients stop paying?
It's rarely personal. Most late payers fall into one of four groups. They forgot. They're having cash flow trouble. They're unhappy about something and haven't said so. Or, occasionally, they're hoping you'll give up.
Your first job is working out which one you're dealing with, because the fix for "forgot" is very different from the fix for "unhappy".
What should you check before you chase?
Before you send anything firm, pull up three things.
- Your contract. When is payment due? Is there a late fee? Can you pause work? Does ownership of the work only pass to the client once they've paid?
- Your invoice. Right amount, right entity, right due date, your ABN and payment details. A surprising number of "late" invoices are just wrong.
- Your records. Did you deliver what was in scope? Any emails where they raised concerns?
Your contract is your leverage. A payment clause, a pause clause and a "you own it once it's paid" clause turn a chase into a reminder of what was already agreed.
How do you get a client to pay? Six steps
1. Send a friendly reminder
Keep it short and warm. Attach the invoice, mention the due date and give them an easy out: "Just checking this didn't get lost in your inbox."
2. Follow up firmly, quoting your terms
A week later, follow up again. This time quote the payment clause and any late fee, and give a new date. Still polite. Just clearer.
3. Pick up the phone
Emails are easy to ignore. A five-minute call often tells you whether it's cash flow (offer a payment plan) or a problem with the work (go to the next section).
4. Pause the work, if your contract allows it
If you're mid-project or on a retainer and your contract has a suspension clause, now's the time to use it. Tell them in writing, and say what will restart the work. If ownership of the work passes on payment, you can also hold the final files until you're paid.
5. Send a letter of demand
A letter of demand sets out what's owed, why, and what happens if it isn't paid by a set date. It's often the step that works. Before you send one, read common demand letter mistakes to avoid, and see business.gov.au's guide to writing a letter of demand. If you want one ready to go, there's a Letter of Demand template.
6. Mediation or small claims
If the letter doesn't work, your options include mediation, your state's small business commissioner, or the small claims division of your state's tribunal or local court. Business.gov.au has a good overview of what to do when you haven't been paid. Weigh up the time and cost against what you're owed.
From Riz's Desk
Most clients pay at step one or two. The ones that get to step five almost always have one thing in common: there was no signed contract, or nobody ever looked at it until now.
What if the client disputes the work?
If a client says the work wasn't done properly, slow down. Ask them to put their concerns in writing, then compare them against the agreed scope. If part of the complaint is fair, fix that part. If it isn't, say so calmly and point to the scope.
A partial payment for undisputed work is often a fair way through. More on this in how to deal with a dispute over an invoice.
What mistakes make it harder to get paid?
- Waiting too long. The older the invoice, the harder it is to collect.
- Getting emotional in writing. Everything you send could end up in front of a tribunal member. Keep it factual.
- Posting about the client online. Naming and shaming is higher risk for you than for them. It can raise defamation issues and it rarely gets you paid.
- Threatening things you won't do. If you say you'll go to the tribunal, be ready to.
- Handing over everything before the final payment. Once they have the files and the rights, your leverage is gone.
How do you stop it happening again?
Getting paid starts before the work does. These clauses do most of the heavy lifting:
- A deposit before work starts, and milestone payments for bigger projects
- Clear due dates and a late payment fee that's reasonable
- A right to pause work when invoices are overdue
- Ownership of the work passes on full payment
- A cancellation fee for clients who pull out. Our guide to cancellation fees covers how to keep it fair.
And get it signed. Rachel, a photographer, found that a proper signing process changed how clients saw her:
"I've started using an online signing program with the agreement and have had a few comments from new clients saying how professional and easy everything is!" Rachel W.
Frequently asked questions
Can I charge a late fee or interest on an overdue invoice?
Generally yes, if it was in your contract or terms before the work started and it's reasonable. Adding a fee after the fact is much harder to enforce.
Can I keep the files until the client pays?
If your contract says ownership or delivery of final files happens on full payment, yes. Without that clause, it's a grey area, so put it in your next contract.
Do I need a lawyer to send a letter of demand?
No. Many small businesses send their own. A letter from a lawyer can carry more weight, so it's worth considering for larger amounts.
Is it worth chasing a small invoice?
Often, yes, because small amounts add up and steps one to five cost very little. Past that, weigh your time against the amount.
Can I post about a client who won't pay?
It's higher risk. Public posts can raise defamation issues and usually make the dispute harder to settle. Stick to private, written steps.
What should you do today?
Open your oldest unpaid invoice. Check your contract, then send the step-one or step-two email this afternoon. Then look at your contract template and check it has the five clauses above. If it doesn't, fix that before your next client signs.
The Late Payment Kit gives you email reminders, a Letter of Demand template and checklists, so chasing an invoice is a process, not a panic. Just need the letter? Grab the Letter of Demand template.
About the Author
Riz is the Founder & Director of Foundd Legal, a lawyer with 20+ years' experience and a long history of building online and ecommerce businesses.
She helps creatives and online business owners protect and grow their businesses with clear, practical legal tools that actually make sense.
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Disclaimer
We do our best to keep this content accurate and up to date, but laws change, interpretations evolve, and the internet isn't perfect. Occasionally, information may be outdated or contain errors.
This content is for general information only and isn't legal advice. If you choose to rely on it, you do so at your own discretion. For advice specific to your business, you'll need support tailored to your situation.
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