Most overdue invoices are paid after a single reminder — but some require a structured escalation. Use this sequence in order. Customise the [PLACEHOLDERS] with your own details.

Before you start

Check the invoice was actually delivered to the right contact and email address.
Confirm the payment terms on the invoice — disputes about due dates are common.
Keep a written record of every reminder sent (date, method, response).
Stay professional at every stage — aggressive language can create defences.

1. Friendly nudge (1–3 days overdue)

Subject line: Friendly reminder — Invoice [INV-001] due [DATE]

Hi [Client name],

I hope you are well.

I am writing to let you know that Invoice [INV-001] for [AMOUNT] (inc. GST) was due on [DUE DATE].

If you have already arranged payment, please disregard this message — thank you.

If you have any questions about the invoice, feel free to reply to this email or give me a call.

Payment details:
  BSB: [YOUR BSB]
  Account: [YOUR ACCOUNT]
  Account name: [YOUR BUSINESS NAME]

Thank you for your business.

[YOUR NAME]
[YOUR BUSINESS]
[YOUR PHONE]

2. Firm reminder (7–14 days overdue)

Subject line: Payment overdue — Invoice [INV-001] — [AMOUNT] — Action required

Dear [Client name],

This is a follow-up regarding Invoice [INV-001] for [AMOUNT] (inc. GST), which was due on [DUE DATE] and remains unpaid.

We have sent a previous reminder. If there is an issue with the invoice, please contact me immediately so we can resolve it.

If you are experiencing cash-flow difficulties, please get in touch — we may be able to arrange a payment plan.

Please arrange payment within 7 days to avoid further action.

Payment details:
  BSB: [YOUR BSB]
  Account: [YOUR ACCOUNT]
  Account name: [YOUR BUSINESS NAME]
  Reference: [INV-001]

Regards,
[YOUR NAME]
[YOUR BUSINESS]
[YOUR PHONE]

3. Final notice (21+ days overdue — before recovery)

Subject line: FINAL NOTICE — Invoice [INV-001] — [AMOUNT] — Payment required within 7 days

Dear [Client name],

FINAL NOTICE

Invoice [INV-001] for [AMOUNT] (inc. GST) has been outstanding since [DUE DATE] — now [DAYS OVERDUE] days overdue.

Despite two previous reminders, payment has not been received. This is your final opportunity to resolve this matter directly.

If full payment is not received by [FINAL DATE — 7 days from now], we reserve the right to:
  • Refer this debt to a commercial debt recovery specialist
  • Charge interest on the overdue amount under the terms of our contract
  • Report the overdue account to a credit reporting body

To avoid these steps, please pay in full by [FINAL DATE]:
  BSB: [YOUR BSB]
  Account: [YOUR ACCOUNT]
  Account name: [YOUR BUSINESS NAME]
  Reference: [INV-001]

If you have a genuine dispute about this invoice, contact us immediately in writing.

Yours faithfully,
[YOUR NAME]
[YOUR BUSINESS]
[YOUR PHONE]
[YOUR EMAIL]

Formal letter version (final notice — print/post)

[YOUR BUSINESS NAME]
[YOUR ABN]
[YOUR ADDRESS]
[YOUR PHONE] | [YOUR EMAIL]

[DATE]

[CLIENT NAME]
[CLIENT ADDRESS]

Dear [Signatory name],

RE: OVERDUE INVOICE — [INV-001] — [AMOUNT]

We refer to Invoice [INV-001] dated [INVOICE DATE] for [AMOUNT] (including GST of [GST AMOUNT]), issued to [CLIENT BUSINESS NAME] for [DESCRIPTION OF GOODS/SERVICES].

Payment was due on [DUE DATE]. As at the date of this letter, the invoice remains unpaid — [DAYS OVERDUE] days overdue.

DEMAND FOR PAYMENT

We formally demand payment of [AMOUNT] in full within seven (7) days of the date of this letter.

If payment is not received by [FINAL DATE], we may, without further notice:
1. Refer this debt to a commercial debt recovery specialist
2. Commence proceedings in the appropriate court or tribunal to recover the debt, together with interest and costs

PAYMENT DETAILS
  BSB: [YOUR BSB]
  Account number: [YOUR ACCOUNT]
  Account name: [YOUR BUSINESS NAME]
  Reference: [INV-001]

If you believe there is a genuine error in this invoice, please contact us immediately in writing.

Yours faithfully,

[YOUR NAME]
[YOUR TITLE]
[YOUR BUSINESS NAME]
ABN [YOUR ABN]

What to do if these don't work

If the final notice is ignored, the next step is professional debt recovery. Merion recovers overdue commercial invoices on a commission-only basis — no upfront cost, no recovery fee if unsuccessful.

Before referring, gather:

Copies of the original invoices and any purchase orders
Copies of all reminders sent and any replies
The account statement (use our statement generator)
Any signed contracts or terms of trade

Refer a debt to Merion →

Other free tools

Invoice Generator — create ATO-compliant tax invoices
Statement Generator — build an account statement
Merion Free Tools — late payment cost calculator, ROI calculator and more

Payment Reminder Templates