How to chase an unpaid invoice (with 5 email templates)

To chase an unpaid invoice: send a friendly reminder just before and just after the due date, follow up by phone, then send a firm final notice. If it's still unpaid, send a letter of demand and consider dispute support, a debt collector or a small claims tribunal. Below are five templates for each stage.

Chasing money is nobody's favourite job. The good news: most late payments aren't malicious — invoices get buried, approvals stall, people forget. A calm, consistent follow-up process fixes most of them without damaging the relationship.

Before you chase: check these 3 things

1. Was the invoice correct? Wrong ABN, missing PO number or a wrong email address can quietly block payment. If you're GST-registered, check it meets the tax invoice requirements.
2. Did it reach the right person? Many businesses pay through an accounts team, not the person who hired you.
3. What did you agree? business.gov.au suggests reviewing your contract first: the due date, the payment method and what happens if payment is late. If the agreement was verbal, emails and texts can show what was agreed.

A simple follow-up schedule

Adjust the timing to your payment terms — but keep it consistent. A predictable process feels professional, not personal.

5 overdue invoice email templates

Copy, paste and personalise. Replace everything in [brackets]. Always attach the invoice again and include a payment link or bank details — make paying the easiest possible next step.

Template 1: Friendly heads-up (before the due date)

Subject: Invoice [INV-0042] due [Friday 7 Nov]

Hi [Name],

Just a quick heads-up that invoice [INV-0042] for [$1,250.00] is due on [Friday 7 November].

I've attached it again for convenience. You can pay by bank transfer to:
BSB [000-000] · Account [00000000] · Reference [INV-0042]

Thanks again — it was great working on [project] with you.

[Your name]
[Business name] · ABN [00 000 000 000]

Template 2: Gentle reminder (1 day overdue)

Subject: Reminder: invoice [INV-0042] is now due

Hi [Name],

I hope you're well. A friendly reminder that invoice [INV-0042] for [$1,250.00] was due yesterday, [7 November].

If it's already on its way, thank you — please ignore this. If anything's holding it up (a PO number, a different contact in accounts), let me know and I'll sort it straight away.

Invoice attached · Pay by bank transfer: BSB [000-000] · Account [00000000]

Thanks,
[Your name]

Template 3: Direct follow-up (7 days overdue)

Subject: Invoice [INV-0042] — 7 days overdue

Hi [Name],

I'm following up on invoice [INV-0042] for [$1,250.00], which was due on [7 November] and is now 7 days overdue.

Could you please confirm when payment will be made? If there's an issue with the invoice or the work, I'd like to resolve it quickly — happy to jump on a call.

I'll give you a ring on [day] if I haven't heard back.

Kind regards,
[Your name]
[Phone]

Template 4: Final notice (14 days overdue)

Subject: FINAL NOTICE: invoice [INV-0042] — payment required by [date]

Hi [Name],

Invoice [INV-0042] for [$1,250.00] is now 14 days overdue. I've sent reminders on [dates] and haven't yet received payment or a reply.

Please arrange payment in full by [date — e.g. 7 days from now].

If payment isn't received by then, I'll need to take further steps to recover the amount, which may include a formal letter of demand.

If you're experiencing difficulties, please contact me before [date] — I'm open to discussing a payment plan.

Regards,
[Your name]
[Business name] · ABN [00 000 000 000]

Template 5: Letter of demand notice (21–30 days overdue)

Subject: Letter of demand — invoice [INV-0042]

Dear [Name / Accounts team],

Re: Outstanding amount of [$1,250.00] — invoice [INV-0042] issued [date]

Despite previous reminders on [dates], the above amount remains unpaid. The amount was due on [date] under our agreed terms of [14 days].

I demand payment of [$1,250.00] within [7/14] days of the date of this letter, i.e. by [date].

If payment is not received by that date, I intend to pursue recovery of the debt without further notice. This may include engaging a debt collection service or lodging a claim with the relevant tribunal or court.

Payment details: BSB [000-000] · Account [00000000] · Reference [INV-0042]

Yours sincerely,
[Your name]
[Business name] · ABN [00 000 000 000] · [Address]

For a proper letter of demand, use the guidance and template on business.gov.au, or ask a lawyer to draft one. Business Victoria also has free reminder and final notice templates.

When to pick up the phone

If two emails go unanswered, call. A two-minute conversation often uncovers the real problem — a missing approval, a changed contact, a cash-flow crunch — and gets you a firm payment date. Afterwards, confirm what was agreed in a short email so there's a written record.

If they still won't pay

business.gov.au outlines the next steps once reminders fail:

1. Send a formal letter of demand (yourself or via a lawyer).
2. Get dispute support. The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has a dispute support tool to find low-cost help, and a team that can assist. Mediation is another option.
3. Use a debt collection service. Tell the customer first — it sometimes prompts payment on its own.
4. Consider legal action, such as a small claims tribunal, depending on the amount. Court can be costly and slow, so get advice first.

Sometimes the commercially sensible option is to write off a small debt and stop working with that client. That's a legitimate business decision, too.

How to prevent late payments in the first place

• Agree terms in writing before you start. Payment terms form part of your contract.
• Use shorter terms. 7 or 14 days rather than 30 — see Payment terms explained.
• Ask for a deposit on larger jobs.
• Invoice immediately when the work is done.
• Make paying easy — offer bank transfer and card.
• Automate reminders so follow-up happens even when you're busy.

New to invoicing? Start with our step-by-step sole trader invoicing guide.

Frequently asked questions

This article is general information only, not tax, legal or financial advice. Rules change — check the linked ATO and business.gov.au pages or speak to a registered tax agent about your situation.