Overdue Invoice Checklist

Before you start

A reminder that turns out to be wrong does more damage than no reminder at all, so spend two minutes confirming the facts before you send anything. The goal is to chase only debts that are real, correctly addressed and genuinely past their agreed due date.

• Check the agreed terms — net 7, 14 or 30 days — and the exact due date.
• Confirm the invoice reached the right person at the right email or postal address.
• Look for any part-payment, credit note or remittance you may have missed.
• Make sure there is no live dispute or query already sitting unanswered.

Australian debt-collection conduct guidance from the ACCC and ASIC expects contact to be accurate and not misleading, so getting the basics right is also how you stay on the right side of the rules. This is general information, not legal advice.

Work the invoice in order

Follow the same sequence every time so the customer always knows where they stand and you always know what comes next.

1. On day one of arrears, send a short, factual reminder: invoice number, amount owing, original due date and a clear way to pay.
2. Attach a fresh copy of the invoice and quote any reference their accounts team needs to match the payment.
3. Set a new, short deadline — five business days is typical — rather than leaving it open-ended.
4. If nothing lands, follow up by phone to confirm receipt and ask for a specific payment date.
5. Record the date, channel and outcome of every contact in one place.
6. If the new deadline passes, move to a firmer written demand that references the earlier reminders.

Need a worded escalation if a gentle nudge does not work? The Merion tools include a letter of demand generator.

Decide whether to escalate or hold

Not every overdue invoice should march straight to a demand. Read the signal behind the silence before you decide.

• Hold briefly if the customer has acknowledged the invoice and given a credible, dated commitment.
• Escalate if you get excuses but no money, or no response at all after two written contacts and a call.
• Pause and resolve if a genuine dispute surfaces — chasing a disputed amount as if it were clear-cut invites a complaint.

Older debts are consistently harder to collect, so do not let a quiet invoice drift for months. If your own steps stall, it is usually time to bring in help rather than chase in circles.

Common mistakes

Most overdue-invoice chases go wrong in predictable ways. Watch for these before you send.

• Chasing before confirming the invoice was delivered and the terms have actually passed.
• Leaving the deadline open-ended, so there is no clean point to escalate from.
• Threatening action — legal steps, default listings — you have no intention or ability to take.
• Letting the tone slide into aggression or contacting the customer at unreasonable times.
• Keeping no written trail, which leaves you with nothing if the debt later needs recovery.

If the debt is already stale or going nowhere, a free debt appraisal tells you whether it is worth pursuing.