Clients pay late and I hate chasing them: how to get invoices paid on time
⏱ In about 8 minutes
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In this article
The short answer
Short answer
Most late payment is a process problem, not a people problem. Agree clear payment terms up front, send the invoice the day the work is done, make paying one click, and let software send polite reminders automatically. Save the awkward phone call for the few who still don't pay.
Invoicing software such as Xero or FreshBooks handles the reminders and payment links for you, so chasing stops being a job you have to remember.
Why clients pay late
- The terms were never clear. Australia's business.gov.au says "without clear terms, customers may pay late, dispute the payment or refuse to pay." (business.gov.au)
- The invoice arrived late, or was unclear. If you invoice two weeks after the job, you've added two weeks to every payment.
- Paying is a hassle. Bank details to copy, no reference, no link.
- They simply forgot. business.gov.au notes "some late payments happen because the customer forgot". (business.gov.au)
The cost of doing nothing: your cash is sitting in someone else's account, and you're spending evenings writing reminder emails instead of doing paid work.
Fix it: step by step
The time guides are rough, for a small business setting this up once.
Step 1: Write down clear payment terms (30 minutes)
Payment terms "are the rules your business sets for how and when customers must pay", and they "form part of a sales contract under contract law." Include how you accept payment and when you expect it (for example, "on delivery or after 30 days"). (business.gov.au) Put them in your quote, your contract and every invoice.
In the UK, if no payment date is agreed, the government says "the law says the payment is late 30 days after" delivery of the goods or service, and businesses can claim interest and debt recovery costs on late commercial payments. (GOV.UK) Check the rules in your country.
Step 2: Invoice on day one (5 minutes per job)
Send the invoice the same day the job is finished, or set up recurring invoices for regular work. business.gov.au recommends you "use accounting software to manage invoices, sales and customer accounts", which "helps you keep track who you've invoiced and who has paid." (business.gov.au)
Step 3: Make the invoice impossible to misunderstand (15 minutes, once)
Due date in bold, total in bold, what it's for, how to pay, and your contact details. If you're GST-registered in Australia, check what a tax invoice must include. (business.gov.au)
Step 4: Add a "pay now" option (30 minutes, once)
Let clients pay by card or bank transfer straight from the invoice. Xero, for example, suggests you "add a Pay now button so customers can pay the moment they open the invoice". (Xero) Card payments usually carry fees; check them before switching on.
Step 5: Turn on automatic reminders (15 minutes, once)
Set a friendly reminder a few days before the due date, on the due date, and 7 days after. Xero says its reminders "nudge customers before and after their due date with your own message" and that "as soon as payment arrives, Xero stops sending." (Xero) FreshBooks lists "Automated Late Payment Reminders" and "Automated Recurring Invoices" among its features. (FreshBooks pricing)
Step 6: Have a polite chase process for the rest (10 minutes per case)
business.gov.au suggests you "start with a polite reminder by phone or email" and "have a clear process for chasing up customers who haven't paid on time." (business.gov.au)
Copy-and-paste chase templates
3 days before due
Hi [Name], a quick heads-up that invoice [#] for [amount] is due on [date]. You can pay online here: [link]. Thanks!
7 days overdue
Hi [Name], invoice [#] for [amount] was due on [date] and still shows as unpaid. Could you let me know when we can expect payment? Here's the link again: [link].
21 days overdue (then call)
Hi [Name], invoice [#] for [amount] is now three weeks overdue. Please arrange payment by [date], or call me on [number] if there's a problem we can sort out together.
Quick pick
Quick pick: invoicing software with automatic reminders (product details from official vendor pages, checked 18 Oct 2026. Not hands-on tested. No ratings. Confirm prices and features on the vendor's site. Prices shown include introductory discounts at the time of checking.)
- Best for most small businesses: Xero. Automated invoice reminders, a "Pay now" button on online invoices, recurring invoices, and "no per-user license fees". US plans were listed from US$27/month (Early, which includes 20 invoices) after a 6-month introductory discount (90% off at the time of checking, 19 Oct 2026); Australian plans are priced separately. → See our accounting guide
If you're a freelancer or service business on a budget: FreshBooks. Lists automated late payment reminders, recurring invoices and scheduled late fees. Lite was listed at US$23/month (for up to 5 clients) before a limited-time discount. → See our accounting guide
Compare features in our invoicing software guide.
What we'd avoid: honest limits
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Frequently asked questions
What payment terms should I use?
Whatever suits your business and your clients. business.gov.au notes common credit terms such as "7, 14, 21 or 31 days" and suggests getting help from your industry association if unsure.
Is it rude to send reminders before the due date?
No. A friendly heads-up is helpful, and most clients appreciate it.
Should I ask for a deposit?
For larger jobs, a deposit or staged payments reduces your risk. Put it in your terms.
When should I stop chasing?
business.gov.au notes that "chasing payments takes time and money" and that sometimes the best option is to stop and write off the debt. Get advice before formal debt recovery.
Related guides
- Accounting: our hub
- I'm still doing invoices in a spreadsheet
- My bookkeeping is a shoebox of receipts
- I spend my evenings on admin
Sources
Government bodies first. All links checked and loading on 18 Oct 2026.
- business.gov.au (Australian Government): Payment terms · How to invoice
- GOV.UK: Late commercial payments: charging interest and debt recovery
- Vendor pages (checked 18 Oct 2026): Xero: send invoices · Xero US pricing · Xero AU pricing · FreshBooks pricing
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