Collecting a past due invoice is mostly process. The businesses that recover the most are not the most aggressive; they are the most consistent.
1. Verify the balance
Check the amount, due date, partial payments and credits against your own records. Chasing money that has already been paid is the fastest way to lose a customer.
2. Find the real approver
Your contact often cannot release payment. Ask who approves supplier invoices and address them directly.
3. Send structured reminders
Use a short sequence that escalates: a neutral reminder, a specific question, then a firmer notice. Our payment reminder templates cover each stage.
4. Pick up the phone
A call to accounts payable resolves many invoices that email could not. Ask: is it approved, is it scheduled, and is anything missing?
5. Offer a payment plan
If the customer genuinely cannot pay in full, agree instalments in writing with dates and amounts. Some money on a schedule beats no money on a promise.
6. Send a formal letter
At around 30 days late, send a past due invoice letter with a firm deadline and a factual description of next steps.
7. Escalate or close
Options include a recovery service, small claims court, or writing the balance off. Decide based on the amount, the evidence you have and the relationship.
What makes collection easier next time
- Accurate invoices with PO numbers and the correct legal entity.
- Payment terms agreed in writing before work starts.
- Deposits or milestone billing on large projects.
- A log of every contact you make.
AI Money Recovery prioritises past due balances by value and age, drafts outreach from your records, and waits for your approval before anything is sent. Recovery is not guaranteed.
Frequently asked questions
- What is the best way to collect past due invoices?
- Verify the balance, contact the person who approves payment, follow an escalating reminder sequence, call, and offer a written payment plan if needed.
- When should I send an invoice to collections?
- Many businesses consider it after 60 to 90 days with no payment or engagement, once internal steps and a formal letter have failed.
- Can I stop work for a client who hasn't paid?
- If your contract allows it, pausing work is a common and legitimate lever. Tell the client in writing and reference the terms.
Written by the AI Money Recovery team
Practical guides on invoices, payment terms and accounts receivable, founded by Alexander Lee Rhea. About us
General information, not legal or tax advice. Offer subject to applicable terms and conditions. Recovery is not guaranteed.