The average trade business has thousands of dollars sitting in unpaid invoices at any given time. Most of it could be collected — with the right process and the right timing.
Why tradies don’t get paid on time
It’s rarely malicious. Clients are busy. Invoices get buried in inboxes. Payment slips their mind. The problem is that tradies are even busier — so following up gets deprioritised until the money is months late and the conversation becomes uncomfortable.
The solution isn’t chasing harder. It’s building a system that chases automatically, at the right time, in the right tone, without you having to think about it.
Prevention: make it easy to pay
Before you fix your follow-up process, fix your invoice. Common reasons invoices don’t get paid promptly:
- No payment link: If your client has to call their bank and manually enter your BSB and account number, some won’t bother straight away
- No due date: “Please pay at your convenience” means never
- No late payment terms: If there’s no consequence for late payment, there’s no urgency
- Wrong email address: Always confirm email when you do the job, not from your records
The chasing sequence that works
This is the sequence that gets results without damaging client relationships:
| Timing | Message | Tone |
|---|---|---|
| Same day as invoice | Invoice sent with payment link and due date | Friendly, professional |
| Due date — morning | “Just a reminder that payment for [job] is due today.” | Polite nudge |
| 3 days overdue | “Hi [name], I haven’t received payment for invoice #[X]. Please arrange payment by [new date].” | Direct but professional |
| 7 days overdue | “This invoice is now 7 days overdue. Please pay immediately or contact me to discuss.” | Firm |
| 14 days overdue | “This is a final notice. If payment is not received by [date] I will refer this debt for collection.” | Formal |
| 21+ days overdue | Refer to ARITA-member debt collector or VCAT/NCAT small claims | Legal |
The right tone makes all the difference
The first two reminders should feel like a friendly prompt, not an accusation. Most late payers are just disorganised, not dishonest. An aggressive first message can permanently damage a good client relationship over a payment that was coming anyway.
Save the firm tone for 7+ days overdue. At that point, the client has chosen not to pay, not just forgotten.
Talk2Quote Chasers: Set your chasing rules once — reminder at 3 days, firm notice at 7, final at 14. The system sends every message automatically. You never think about overdue invoices until they show up in your account. Start free — 21 days.
What to do when it all goes wrong
If a client genuinely refuses to pay, you have options:
- Statutory demand: For amounts over $4,000, you can issue a statutory demand to a company. Non-payment within 21 days can be used as evidence of insolvency in winding-up proceedings. Get legal advice before using this.
- Small claims tribunal: VCAT (VIC), NCAT (NSW), QCAT (QLD) and equivalent tribunals handle commercial disputes up to $100,000–$500,000 depending on the state. No lawyers needed for most hearings. Filing fee is typically $50–$200.
- Debt collection agency: For commercial debts, a debt collector typically charges 15–25% of the amount recovered. This preserves your time but costs you a share of the debt.
- Building industry adjudication: For construction disputes specifically, the Security of Payment legislation in each state gives you a fast-track adjudication process. You can get a payment determination in 10 business days.
Security of Payment legislation — the tradie’s secret weapon
Most tradies don’t know about this, but every state and territory has Security of Payment legislation designed to protect subcontractors and trade contractors from being left holding unpaid bills. Key features:
- You can issue a payment claim for work done. The other party must respond with a payment schedule within a set time (usually 10–15 business days)
- If they don’t respond, you can recover the full claimed amount by going to court — without them being able to contest it
- If they dispute it, it goes to a fast-track adjudicator
- Adjudication decisions are enforced as court orders
This process is specifically designed for small operators dealing with builders, developers, and project principals who hold back payment. Look up your state’s Act (e.g., Building and Construction Industry Security of Payment Act 1999 in NSW).
Prevention is worth more than chasing
The best debt collection is the kind you never need. Build these habits:
- Ask for a deposit on any job over $2,000
- Progress-bill on jobs over $5,000 rather than waiting until completion
- Do a quick ABN lookup on any new commercial client before starting work
- Check your payment terms are in your quote and your invoice
- Never do additional work for a client with an outstanding invoice
Set your chasers once. Get paid on autopilot.
Talk2Quote Chasers sends the right nudge at 3 days, a firmer reminder at 7, and a final notice at 14 — automatically, on every invoice. You only see it when they pay.
Try it free — 21 daysThis article is for general information purposes only. It does not constitute legal, financial, or professional advice. Talk2Quote recommends consulting a qualified accountant, bookkeeper, or employment lawyer for advice specific to your situation. Information is current as at April 2026 and may change.