Quick answer
To chase an unpaid invoice by phone, call the person who approves payments soon after the due date, confirm they received the invoice, ask when it will be paid, and agree a specific date. Be friendly but specific, note what was agreed, and follow up in writing the same day. If the date passes, escalate to a letter of demand and low-cost dispute help before debt collection or tribunal action.
Key points
- Call within a few days of the due date. The longer an invoice sits, the harder it is to collect.
- Ask for a specific payment date, not a vague promise.
- Confirm every call in a short email the same day.
- business.gov.au sets out the escalation path: reminder, letter of demand, dispute resolution, collection, tribunal.
- If a late payer is squeezing your cash flow now, a finance conversation can run alongside the chasing.
Why a phone call beats another email
Most overdue invoices aren’t malicious. They’re sitting in someone’s inbox, waiting on an approval, stuck because the bank details changed, or quietly deprioritised by a customer who’s short of cash themselves. An email reminder is easy to ignore. A friendly phone call is not. It gets you a real answer in two minutes: paid, not paid, or something’s wrong.
And for a small business, the difference between an invoice paid on day 32 and one paid on day 75 can be the difference between a comfortable month and a scramble to cover wages.
Before you pick up the phone
A little preparation makes the call short and hard to deflect:
- Have the invoice in front of you: number, date, amount, due date, and what it was for.
- Know who approves payments. Your usual contact might not be the person who pays. Ask for accounts payable if needed.
- Check your own records. Was the invoice sent to the right address? Were the bank details correct? Did the customer raise any issue with the work?
- Decide what you’ll accept. Full payment by Friday? Half now and half in two weeks? Know your fallback before you call.
business.gov.au suggests starting by reviewing your contract or agreement for payment conditions, and gathering proof like emails or texts if the agreement was verbal.
The first call: friendly and specific
Call within a few days of the due date. The tone is “just checking”, but the goal is a date.
“Hi, it’s Jo from a small signage business. I’m just following up invoice 1042 for $6,380, which was due on the 15th. Can you check it’s been received and approved for payment?”
Illustrative example only.
Then stop talking and let them answer. Most responses fall into one of four groups:
| What they say | What you say next |
|---|---|
| “It’s in the next pay run.” | “Great, when’s the next pay run?” Then confirm the date. |
| “We never got it.” | “No problem, what’s the best email? I’ll resend it now while we’re on the phone.” |
| “It’s waiting for approval.” | “Who’s approving it, and when will they look at it? Can I call back on Thursday to check?” |
| “There’s an issue with the work.” | “Thanks for telling me. What’s the issue?” Deal with it, then agree a date for payment of the undisputed part. |
The golden rule: don’t hang up without a date. “Soon” and “next week” aren’t dates.
Put it in writing, the same day
Straight after the call, send a two-line email:
“Thanks for your time today. As discussed, invoice 1042 for $6,380 will be paid by Wednesday 22nd. I’ve reattached it for your records.”
It feels formal, but it’s what turns a phone promise into a record. If things escalate later, this email matters.
The second call: when the date passes
If the agreed date comes and goes, call again, the next business day. Still polite, now firmer:
“Hi, it’s Jo again. When we spoke last week you mentioned invoice 1042 would be paid by the 22nd. I haven’t seen it come through. Can you tell me what’s happened and when I can expect it?”
Illustrative example only.
If the honest answer is “we’re struggling”, ask what they can pay now. A partial payment and a short, dated instalment plan is usually better than waiting months for nothing. Put the plan in writing.
Handling the common excuses
- “The person who approves it is away.” Ask who covers for them, or when they’re back, and call that day.
- “We pay on 60 days.” Check your terms. If your invoice says 14 or 30 days and they agreed to it, say so politely. For future work, agree terms upfront.
- “We’re changing systems.” Ask for a manual payment in the meantime.
- “Send it again.” Resend it while you’re still on the phone and ask them to confirm receipt.
When calls don’t work: the escalation path
business.gov.au sets out a sensible order of steps when you haven’t been paid:
- Send a reminder by phone, email or letter, and discuss a new payment date.
- Send a letter of demand if reminders fail. business.gov.au notes you have legal and consumer law obligations when contacting a business about a debt, so keep it factual and professional.
- Use dispute resolution. The Australian Small Business and Family Enterprise Ombudsman offers low-cost dispute support, including mediation. State small business commissioners also offer low-cost dispute resolution.
- Engage a debt collection agency, letting your customer know you plan to do so.
- Take legal action, through a small claims tribunal for smaller amounts or a lawyer for larger ones.
business.gov.au points out that court action can be costly, stressful and time-consuming, which is why the earlier steps are worth doing properly.
Who should make the call?
In many small businesses, the owner does the chasing because nobody else can. That works, but it isn’t always ideal. Owners sometimes find it hard to be firm with customers they’ve known for years, and chasing competes with everything else on a busy day.
Options worth considering:
- A bookkeeper or admin person who handles accounts receivable as part of their role. A consistent, friendly voice on the accounts line can be very effective.
- A set time each week, such as Tuesday morning, when overdue accounts are reviewed and called, so it doesn’t slip.
- A clear handover point, for example at 60 days overdue, when the owner steps in personally or the matter moves to a letter of demand.
If your phones are already stretched, our guide on receptionists and answering services looks at the cost of getting help. And if chasing is taking more of your week because turnover is uneven, our page on describing turnover to a lender explains how to present a lumpy pattern if you need a facility to smooth it. For a quiet month, calling past customers is a good companion to this guide.
Preventing the next one
Most chasing can be avoided with a few habits:
- Agree payment terms in writing before work starts.
- Invoice promptly, with clear due dates and correct bank details.
- Take deposits or progress payments on larger jobs.
- Call new customers a few days before the first invoice falls due, just to confirm it’s in their system.
- Watch the pattern. A customer who pays later every month is telling you something about their own cash flow.
business.gov.au has more on setting payment terms and invoicing correctly in its payments and invoicing section.
When a late payer squeezes your own cash flow
Sometimes you do everything right and the money still doesn’t arrive in time for your own bills: wages, BAS, a supplier. That’s when chasing and financing need to run side by side. A short-term facility can cover the gap while the debt works its way through reminders, letters and mediation.
If that’s where you are, you don’t have to wait until the situation is desperate to check what your business could qualify for. Tell a specialist who owes what, how long it’s been outstanding and what’s due on your side. Our page on describing turnover and bank statements shows how to explain a lumpy month caused by a late payer, and if you have a date looming, read what to say about a tight deadline.
A worked example
A small commercial cleaning business invoices a property manager $14,200 on 30-day terms. Day 33: the owner calls, learns the invoice is awaiting approval, and gets a commitment to pay on the next Thursday run. They confirm by email. Thursday passes. On Friday they call again and are told the client is short of cash and can pay half now and half in three weeks. They agree, confirm in writing, and receive the first half on Monday. Meanwhile, wages are due, so the owner rings a lender to talk about a small cash-flow facility to cover the three-week gap.
Illustrative example only.
Keep your own lines open
Chasing money is uncomfortable, but a good phone call is the fastest, cheapest collection tool you have. Pair it with the right safety net and a late payer becomes an inconvenience rather than a crisis. If you’d like to talk through covering a gap while you wait, call 03 4059 1829 or start a 60-second enquiry. There’s no credit check when you first enquire, your details stay with one team rather than being handed to a pile of lenders, and a real person looks at your situation. Accurate figures, including what you’re owed and when you expect it, help us match the right option first time.
Frequently asked questions
When should I call about an overdue invoice?
Within a few days of the due date. A friendly early call catches most genuine oversights, such as a lost invoice or wrong bank details, before they become a habit.
What should I say when chasing a payment by phone?
Introduce yourself, name the invoice and amount, ask whether it was received and approved, and ask when it will be paid. Agree a specific date and confirm it in writing afterwards.
What if the customer says they can't pay?
Ask what they can pay now and propose a short instalment arrangement with dates. Put it in writing. A partial payment and a plan is usually better than nothing.
When should I send a letter of demand?
When reminders and calls haven't worked and an agreed date has been missed. business.gov.au lists a letter of demand as the next step after a reminder, before dispute resolution or debt collection.
Where can I get low-cost help with an unpaid debt?
The Australian Small Business and Family Enterprise Ombudsman offers dispute support, including mediation, and state small business commissioners provide low-cost dispute resolution in their states.