Client Won’t Pay Your Invoice After 90 Days: What to Do Next

You did the work. You sent the invoice. You followed up politely. Now it’s been 90 days, and your client still hasn’t paid.

Gentle reminders aren’t working. You need to escalate without burning bridges unnecessarily or wasting money on lawyers. This guide walks you through exactly what to do when a client won’t pay your invoice after 90 days.

Why 90 Days Is the Breaking Point

Most payment terms in Australia are 7, 14, or 30 days. By 90 days overdue, you’ve likely sent at least three email reminders, made one or two phone calls, and given the client every reasonable opportunity to explain or pay.

At this point, the client is either ignoring you deliberately, financially distressed, or genuinely disputing the work (though they should have told you by now). Waiting longer rarely improves the situation. The longer a debt ages, the harder it becomes to collect.

Step 1: Confirm the Debt Is Valid and Undisputed

Before you escalate, make sure you have solid ground.

Check your records:

• Original invoice with clear payment terms
• Proof of delivery or completion of work (emails, signed acceptance, delivery receipts)
• Any contract, purchase order, or agreement supporting the invoice
• Evidence the client received the invoice (sent to correct email, not bounced)

Look for disputes:

• Has the client raised any complaint about quality, timeliness, or scope?
• Did they claim the invoice was incorrect or duplicated?
• Have they asked for a credit note or adjustment?

If there’s a genuine dispute about the work itself, resolve that first. If the client has gone silent and raised no objection, the debt is likely undisputed and you can proceed.

Step 2: Send One Final Courtesy Notice

Before you issue formal legal documents, give the client one last chance to pay without escalation. This is not a legal letter yet — it’s a final courtesy email or letter.

What to include:

• Invoice number, amount, and original due date
• Statement that payment is now 90 days overdue
• Clear deadline: “Please pay within 7 days to avoid formal debt recovery action”
• Your preferred payment method
• A polite but firm tone — no apologies, no excuses

Example wording:

> “This is a final notice regarding invoice #12345 for $3,200, which was due on 15 January 2025. Payment is now 90 days overdue. If we do not receive payment within 7 days, we will commence formal debt recovery proceedings, which may include additional costs. Please contact us immediately if there is any issue preventing payment.”

Send this by email and, if practical, by registered post. Keep proof of delivery.

Step 3: Issue a Final Demand

If the 7-day courtesy period passes with no payment and no contact, escalate to a final demand.

A final demand is a formal legal letter that states the debt clearly, demands payment by a specific date (typically 7 days), and warns that legal action will follow if payment is not received. This is not the same as a standard reminder email. A final demand carries legal weight and signals you are serious about recovering the money.

What makes a final demand effective:

• Professional legal formatting
• Specific deadline with consequences clearly stated
• Sent by email
• Mentions potential recovery of legal costs and interest

It’s the wake-up call that shows you mean business.

How Claim Done Helps with Final Demands

Claim Done generates a professionally formatted final demand in about 5 minutes for a flat fee.

You complete a short online form about the unpaid invoice. Our Programmatic Algorithms draft a final demand, format it correctly, and deliver it to your client by email.

No lawyers. No hourly billing. No waiting weeks for a response.

What you get:

• Final demand drafted by our Programmatic Algorithms, tailored to your situation
• Email delivery via Australia Post and email
• Proof of service for your records
• Fixed fee — no hidden costs

If the client pays after receiving the final demand, you’re done. If they don’t, you have a documented escalation trail that strengthens your position in any tribunal or court proceeding.

Step 4: Consider Your Next Move If They Still Don’t Pay

If the final demand deadline passes and the client still hasn’t paid or responded, you have three main options.

Option A: Small Claims Tribunal or Court

You can file a claim in the forum for your state. In some states a money claim goes to a tribunal; in others it goes to a court:

• New South Wales: Local Court of New South Wales — Small Claims Division up to $20,000; General Division over $20,000 up to $100,000 (a business owed money has a debt claim, not an NCAT matter)
• Victoria: Victorian Civil and Administrative Tribunal (VCAT), Civil Claims List
• Queensland: Queensland Civil and Administrative Tribunal (QCAT) — minor civil dispute up to $25,000
• Western Australia: Magistrates Court of Western Australia — minor case claims up to $10,000; general procedure claims up to $75,000
• South Australia: Magistrates Court of South Australia — minor civil action up to $12,000; general claims up to $100,000
• Tasmania: Magistrates Court of Tasmania (Civil Division) — up to $50,000
• Australian Capital Territory: ACT Civil and Administrative Tribunal (ACAT) — civil disputes up to $25,000
• Northern Territory: Northern Territory Civil and Administrative Tribunal (NTCAT) — small claims up to $25,000

Tribunal applications are designed for self-representation, and you don’t need a lawyer. Claim Done’s Tribunal Application ($97) drafts the claim; for a New South Wales debt, that is a Local Court statement of claim. Filing fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file.

Option B: Engage a Debt Collector

Debt collectors usually work on commission. They handle the follow-up, negotiations, and sometimes legal action on your behalf.

This option makes sense if you have multiple overdue invoices, don’t have time to manage the recovery yourself, or the debt is large enough to justify the commission.

Option C: Write It Off (Last Resort)

If the debt is small, the client has disappeared, or the cost of recovery outweighs the amount owed, you may decide to write it off as a bad debt.

Before you do, make sure you’ve exhausted reasonable recovery efforts. You can typically claim the bad debt as a tax deduction if you’ve included the income in a previous tax return.

Protecting Yourself in Future

Once you’ve recovered this debt (or learned a hard lesson), put systems in place to avoid the same situation.

Tighten your payment terms:

• Require deposits or milestone payments for larger projects
• Set shorter payment terms (7 or 14 days, not 30)
• Add late payment interest clauses to your contracts (e.g., 10% per annum on overdue amounts)

Automate reminders:

• Use accounting software (Xero, MYOB, QuickBooks) to send automatic reminders at 7, 14, and 30 days overdue
• Escalate quickly — don’t wait 90 days to take action

Check creditworthiness:

• For new clients or large projects, run a credit check or ask for trade references
• Trust your instincts — if a client seems disorganised or evasive, get payment upfront

Document everything:

• Keep clear records of all agreements, invoices, and communications
• Use written contracts, even for small jobs
• Confirm scope and price in writing before starting work

Ready to Recover Your Unpaid Invoice?

When a client won’t pay after 90 days, you’re past the point of polite reminders. A final demand is the most effective next step — it’s formal, legally grounded, and signals that you’re prepared to take further action if necessary.

Claim Done generates your final demand in about 5 minutes for a flat fee. Tell us about your invoice details, and we’ll draft, format, and deliver a professionally prepared final demand to your client by email; registered post is available for $29 extra. Get started with your final demand and recover what you’re owed.

Frequently Asked Questions

What's the difference between a final demand and a letter of demand?

A letter of demand is typically the first formal request for payment. A final demand is the last warning before legal action — it’s used when earlier reminders or a letter of demand have been ignored. Both are legally valid, but a final demand signals escalation.

Can I add interest or late fees to an overdue invoice?

Yes, but only if your original contract or invoice terms included a late payment clause. You can’t add interest retrospectively. If your terms allow it, you can claim interest at a reasonable rate (commonly 10% per annum) on overdue amounts.

What if the client says they're disputing the invoice after 90 days?

If a genuine dispute exists, you may need to resolve it before pursuing debt recovery. However, if the client has had 90 days to raise concerns and only disputes the invoice after receiving a final demand, this may be a delay tactic.

How long do I have to recover an unpaid invoice in Australia?

The limitation period for debt recovery is generally 6 years from the date the debt became due. After 6 years, the debt may become statute-barred and unenforceable. Don’t wait — act as soon as payment becomes seriously overdue.

Will sending a final demand damage my relationship with the client?

If the client hasn’t paid after 90 days despite reminders, the relationship is already damaged. A final demand is a professional, necessary step to recover what you’re owed.