Invoices unpaid: what to do and how to chase them properly

When invoices are unpaid, check the facts first, then follow a steady reminder process. Keep every message clear, record what happens, and separate genuine disputes from simple silence.

Start by checking what is actually overdue

Before chasing an unpaid invoice, open the job record and check five things:

• The invoice number and customer details are correct.
• The work was completed, collected or accepted.
• The invoice was sent to the right person and email address.
• The due date has passed under the agreed payment terms.
• There is no credit note, part payment or earlier dispute waiting in your inbox.

This sounds obvious, but it prevents an awkward message about an invoice that was sent to the wrong address or already paid by bank transfer. Check the bank account as well. A payment may have arrived without the invoice number in the reference.

If the invoice is not yet due, do not treat it as unpaid. Mark it for a polite reminder near the due date instead. Your records should show the invoice date, due date, amount, customer contact, last message and next action.

What to do with unpaid invoices, step by step

1. Send a friendly first reminder

Keep the first message short. Attach the invoice again and include the invoice number, amount and due date. Ask the customer to confirm if anything is stopping payment.

A useful message might say:

Hello, we are checking invoice 1042 for the kitchen repair, which was due on 14 June. I have attached it again. Please let us know if there is a query with the work or the invoice, and confirm when payment is being arranged.

This gives a good customer a simple way to fix an oversight. It also invites a proper response if something is wrong.

2. Find out whether there is a real dispute

Some unpaid invoices are not payment problems. They are information problems. The customer may say a part was missing, the job was not finished, or the invoice does not match the quote.

Do not argue by email. Compare the invoice with the quote, job notes, photographs, signed paperwork and messages. Write down the exact point in dispute. If only part of the invoice is questioned, ask the customer to confirm which part, while keeping the rest clearly identified.

For complicated disagreements, get advice from your accountant or solicitor. Do not threaten action you do not understand or intend to take.

3. Send a firmer follow up

If there is no dispute and the customer stays silent, send a firmer message. State the invoice details again and give a clear date for a response. Ask them to pay, or to explain the problem, rather than sending a vague message such as “Any update?”

For example:

Invoice 1042 remains unpaid. Please arrange payment or reply with details of any query by 28 June. If you have already paid, please send the payment date and reference so we can check it.

Keep the tone calm. A blunt message can turn a late payment into a customer relationship problem, while a vague message is easy to ignore.

4. Decide what happens next

After the firmer reminder, choose one next action and record it. You may need to pause further work, speak to the customer by phone, agree a payment plan, or seek professional advice. If you call, send a short written note afterwards confirming what was discussed.

Do not keep sending the same reminder every few days. That creates admin without creating a clear next step.

A simple chasing process

The exact spacing depends on your normal terms and customer relationships. The important part is consistency. Everyone in the business should know when an invoice moves from a reminder to a decision.

Why unpaid invoices cause more trouble than one late payment

The obvious problem is missing money in the bank. The less obvious cost is the time spent searching for old emails, checking job notes, writing messages and remembering who promised what.

Unpaid invoices also interrupt planning. You may delay ordering materials, spend less time on new enquiries, or take work from customers who pay promptly to chase people who do not. When records are scattered across a phone, notebook and accounting system, the same invoice can be chased twice, or not at all.

A good process makes the status visible. Use labels such as sent, due soon, reminder sent, disputed, payment promised and paid. Assign one person to own the next action, even if several people can see the record.

Prevent the next unpaid invoice

Prevention starts before the job. Agree the customer contact, payment terms and invoice details when the work is booked. For larger or unusual jobs, make sure the quote says what is included, what can change, and when invoices will be sent.

After the work, send the invoice promptly while the details are fresh. Include a plain description of the job, the agreed amount, your payment details and a useful reference. Ask the customer to check the invoice before the due date, rather than waiting for a problem.

Review unpaid invoices once a week. A short routine is enough:

1. Check new invoices have been sent to the right contact.
2. Check which invoices are due or overdue.
3. Send the next appropriate message.
4. Handle disputes separately from ordinary reminders.
5. Record the next action and its owner.

Watch for warning signs. Frequent requests to resend invoices, sudden changes in contact details, repeated promises without payment, and disputes raised only after several reminders all need careful records. They do not prove bad intent, but they do mean you should stop relying on memory.

What to watch out for when chasing payment

• Do not add charges unless they were clearly agreed and you understand the rules that apply.
• Do not send customer details to the wrong person. Check email addresses before attaching invoices.
• Do not mix several invoices into one unclear message. List each invoice separately.
• Do not remove a dispute from your records just because someone says they will look into it.
• Do not threaten court action, debt collection or service suspension without checking the agreement and getting suitable advice.

The aim is not to become louder. It is to make each step clear, fair and easy to act on. That helps you spot genuine mistakes, deal with disputes properly and stop unpaid invoices taking over the working day.

What Cleo would do

A custom Cleo can watch the invoice list, spot records that have passed their due date and prepare the next reminder using the right invoice details. It can check whether a reply mentions a dispute, payment promise or request for another copy, then place that item in the right queue for a person to review. It can also keep a record of messages, promised actions and missing information, so the next step is visible without searching through old emails.

Common questions

What should I do first when an invoice is unpaid?

Check the invoice number, customer details, due date, payment terms and bank account. Confirm that the invoice was sent to the right contact and that there is no part payment, credit note or existing dispute.

How should I word a reminder for an unpaid invoice?

Keep it short and polite. Include the invoice number, job description, amount, due date and a copy of the invoice. Ask the customer to pay or explain any issue stopping payment.

What if the customer says the invoice is wrong?

Ask for the exact point they are questioning. Compare it with the quote, job notes, photographs and agreed changes. Record the dispute separately, and seek professional advice if the disagreement is complicated.

Should I keep working for a customer with unpaid invoices?

Check your agreement and consider the size and age of the unpaid balance. You may decide to pause new work, but explain the position clearly and keep a written record. Get suitable advice before taking formal action.