When an invoice goes unpaid, the most common mistake is not being too aggressive — it's doing nothing while you wait and hope. An overdue account doesn't improve with age; recovery rates fall the longer it sits. The timeline below is a sensible default. The dates assume standard 14-day terms — shift them to match your own.
Day 0 — The due date
Payment is due today. If it hasn't arrived, that's information, not yet a problem. Check it hasn't been paid to the wrong account or caught in an approval queue, then send a brief, friendly reminder the same day or the next: "just a note that invoice #1234 fell due today — here are the payment details again." Most invoices that are a day or two late are simple oversights.
Day 7 — First firm reminder
A week past due with no response warrants a firmer, but still courteous, follow-up — ideally a phone call backed by an email. Confirm the invoice was received and correct, ask when payment will be made, and get a specific date. A vague "soon" is not an answer; "by Friday" is. Note what was said.
Day 14 — Second reminder and a deadline
Two weeks over, and a promise has either not been made or not been kept. Put the position in writing with a clear, short deadline: "we ask that this is paid within 7 days." Keep it factual. This is also the moment to check your terms — if they provide for interest or recovery costs on overdue amounts, this is where you flag that they may begin to apply.
Day 30 — Formal demand
A month overdue is the point to stop sending reminders and send a formal letter of demand. It should state the amount, what it relates to, the deadline, and that the account may be referred for recovery if it isn't resolved. A letter that reads as a final step, not another nudge, often produces the payment that three reminders did not.
Day 45 — Decision point
If a formal demand has passed without a response or a genuine attempt to resolve, the account has told you what it is. Continuing to chase it in-house now mostly costs you time. This is the natural decision point: resolve it, or refer it. An account that is comfortably overdue, undisputed and unresponsive is a strong candidate for recovery.
Day 60+ — Refer it
Beyond about 60 days, two things are working against you: recovery rates decline as accounts age, and the legal options narrow as the limitation clock runs. Referring the account changes the dynamic — a third party signals the matter is now formal — and returns your team's time. You only pay a commission if it collects, so referring an ageing account costs nothing to try.