What to Do When an Invoice Is Overdue

Check before you chase

Before you send anything, confirm the basics. Was the invoice actually delivered to the right person and the right address? Have the agreed payment terms genuinely passed? A surprising number of 'overdue' invoices are simply sitting in a spam folder, or with someone who has since left the business and never passed them on.

• Re-read your terms — is it net 7, 14 or 30 days?
• Check the exact email or postal address you used.
• Confirm no part-payment has landed that you missed.

Getting this right first means your reminder lands as accurate and professional rather than aggressive. If everything checks out, act the same day the invoice tips into arrears. Prompt follow-up signals that you take your own terms seriously, and customers who sense that tend to pay faster than those who learn that late invoices are quietly forgotten.

Send a same-day reminder

A short, polite reminder on day one of arrears resolves most cases on its own. Keep it factual: the invoice number, the amount owing, the original due date, and a clear way to pay. Attach a fresh copy of the invoice so there is no excuse about missing paperwork, and quote any reference the customer's accounts team will need to match the payment.

Set a new, short deadline — say five business days — rather than leaving it open-ended. A concrete date gives you a clean point from which to escalate if nothing arrives. Our letter of demand generator handles the firmer end of the scale if a gentle nudge does not land, and a clear, well-worded reminder beforehand is what makes that later escalation look reasonable rather than abrupt.

Escalate in stages

If the first reminder is ignored, do not jump straight to threats. Follow a predictable sequence so the customer always knows where they stand: a second written reminder, then a phone call to confirm receipt and ask exactly when payment will be made, then a formal letter of demand if the money still does not arrive by the date you set.

Each step should reference the last, so the customer sees you are organised and keeping records rather than firing off random chasers. Staged escalation protects the relationship while making it clear that you will not simply lose track of the debt. It also builds the documented history that a recovery partner or court will later want to see, which is why a tidy, sequential approach pays off well beyond the immediate chase.

When to bring in help

Once you have sent reminders and a formal demand and still hear nothing — or you get a steady stream of excuses but no actual money — it is usually time to escalate beyond your own desk. Chasing the same debtor in circles costs you time and ties up cash flow you need for the rest of the business.

A commission-only recovery partner only earns when you do, so there is no upfront cost to passing it on and little downside to trying. You can refer the debt to Merion and let specialists take over the chase entirely, applying professional pressure and persistence while you get back to running your business. Handing over sooner rather than later also matters, because older debts are consistently harder to collect.