Invoice Overdue? Here's Exactly What To Do (Step by Step)
Don't panic. Most late invoices get paid with the right approach. Here's the exact process — with email templates at every stage.
📌 Quick summary
- Check it was actually sent and received
- Friendly reminder (0–7 days overdue)
- Firm follow-up (7–14 days overdue)
- Formal notice (14–21 days overdue)
- Final demand + next steps (21–30 days)
- Collection agency or small claims (30+ days)
Step 1: Check if it was actually sent and received
Before escalating, rule out the obvious. A surprising number of “overdue invoices” never arrived — spam filter, wrong email address, or a blocked attachment.
Check your sent folder
Did the invoice email actually go out? Verify you sent it to the right address.
Check the email address
One typo — accounts@acmecorp.co vs accounts@acmecorp.com — means it went nowhere.
Ask if it went to spam
Large company email filters are aggressive. 'Just checking it didn't land in your spam folder' gives the client a face-saving out.
Step 2: Friendly reminder (0–7 days overdue)
Assume it's an oversight. Most late payments at this stage are genuine forgetfulness or an invoice stuck in an approval queue.
Subject: Quick reminder: Invoice #[number] due [date]
Hi [Name],
I hope you're well! Quick reminder that Invoice #[number] for €[amount] was due on [date].
If payment has already been arranged, please ignore this. You can pay via: [payment link / bank details]
Thanks,
[Your name]
Step 3: Firm follow-up (7–14 days overdue)
Reference your previous email, state clearly the invoice is overdue, and ask for a specific payment date.
Subject: Invoice #[number] — €[amount] overdue
Hi [Name],
Following up on my reminder from [date]. Invoice #[number] for €[amount] is now [X] days overdue.
Could you confirm when I can expect payment? If there's an issue with the invoice, please let me know.
Payment details: [payment link / bank details]
Best,
[Your name]
Step 4: Formal notice (14–21 days overdue)
Write for the record. Document your attempts. Mention late fees if in your contract.
Subject: Formal notice: Invoice #[number] — €[amount] — [X] days overdue
Dear [Name],
This is a formal notice that Invoice #[number] for €[amount], due on [due date], remains unpaid. Despite two previous reminders, I have not received payment or a response.
A late payment fee of [X%] per month applies from the original due date. Total outstanding: €[updated amount].
Please make payment within 7 days.
Yours sincerely,
[Your full name]
Step 5: Final demand (21–30 days overdue)
Be direct about what happens next. Partial payment negotiation is worth considering at this stage.
Subject: Final demand: Invoice #[number] — response required within 48 hours
Dear [Name],
This is my final notice before I take further action to recover €[amount] (Invoice #[number], [X] days overdue).
If I do not receive payment or a written payment agreement within 48 hours, I will be referring this matter to a debt collection agency / initiating small claims proceedings.
[Your name]
💡 Consider partial payment
Accepting 70–80% as a settlement is better than 0% and avoids the time cost of legal action.
When to involve a collection agency
Agencies work on commission — typically 10–25% of the recovered amount.
✓ Worth using when:
- • Invoice is 60+ days overdue
- • Client is completely unresponsive
- • Amount is large (€1,000+)
- • You've documented every attempt
✗ Less suitable when:
- • Invoice is under €300
- • Client disputes the work
- • You want to keep the relationship
- • You haven't escalated yet
Prevent this next time with Chaser
Chaser automates the entire follow-up sequence — so every invoice gets chased on schedule, without you lifting a finger.
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Automatic escalation
4-stage sequence sent on your schedule
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Payment links in every email
One click to pay — less friction = faster payment
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Track every invoice
See who's overdue, which stage they're at
Never manually chase an invoice again 🐕
Free for 3 invoices, no credit card required.
Try Chaser free →Frequently asked questions
What do I do when an invoice is overdue?
First check the invoice was actually received (check your sent folder, verify the email address). Then send a friendly reminder. If that doesn't work, escalate through firm follow-up, formal notice, and final demand before considering debt collection.
How long should I wait before chasing an overdue invoice?
Don't wait — send a reminder the day after it's due. Studies show invoices chased within 1–7 days have a significantly higher recovery rate than those left for 2+ weeks.
Can I charge interest on an overdue invoice?
Yes, if you stated late payment terms in your contract or on the original invoice. In the EU, the Late Payment Directive allows statutory interest automatically after the due date.
When should I use a debt collection agency for an unpaid invoice?
Consider a collection agency when the invoice is 60+ days overdue, you've exhausted all follow-ups, the client is unresponsive, and the amount justifies the agency's fee (typically 10–25% of recovery).
How do I prevent overdue invoices in the future?
Use shorter payment terms (Net 7 or Net 14 instead of Net 30), send invoices immediately, include payment links, and set up automated reminders. Tools like Chaser automate the entire follow-up sequence.