Client Won’t Pay Invoice After Job Completed: What to Do Next

You delivered the work. You sent the invoice. The payment date came and went. Now you’re staring at an overdue balance wondering what went wrong.

When a client won’t pay invoice after job completed, it’s a direct hit to your cash flow. Whether you’re a tradie, freelancer, consultant, or small business owner, unpaid invoices can cripple your ability to pay suppliers, staff, or your own bills. Many unpaid invoices can be recovered without going to court if you act quickly and follow the right steps.

This guide walks you through exactly what to do when a client refuses to pay after you’ve done the work.

Why Clients Don’t Pay (And Why It Doesn’t Matter)

Common reasons clients delay or refuse payment:

• Cash flow problems — they’re waiting on their own clients to pay
• Dispute over quality — real or invented after the fact
• Administrative delay — invoice lost in their system, wrong email, approval bottleneck
• Buyer’s remorse — they regret the spend and look for reasons not to pay
• Deliberate avoidance — they never intended to pay

Unless there’s a genuine dispute about the work itself, none of these reasons excuse non-payment. You performed the service or delivered the goods. You’re entitled to be paid.

Step 1: Send a Polite Payment Reminder

Start with the assumption of good faith. Many overdue invoices are simply forgotten or caught in an administrative backlog.

Send a short, professional email:

• Attach the original invoice
• Reference the job completion date and invoice number
• State the amount owing and the original due date
• Ask politely if there’s any issue preventing payment
• Set a new deadline (typically 7 days)

Keep the tone neutral. If they respond with a genuine issue, address it immediately. If they ignore you, move to step two.

Step 2: Follow Up With a Firmer Reminder

If the first reminder gets no response, send a second email 7-10 days later:

• Clearly state the invoice is now overdue
• Mention that you’ve already sent a reminder
• Set a firm deadline (3-5 business days)
• State that you will escalate if payment is not received
• Include the invoice again

This is your last courtesy communication. If they still don’t pay or respond, it’s time to formalise the process.

Step 3: Issue a Letter of Demand

A letter of demand is a formal written notice that you intend to take legal action if the debt is not paid. It’s the most effective tool for recovering unpaid invoices without going to court.

A proper letter of demand should include:

• Your details and the debtor’s details
• A clear statement of the amount owed
• Reference to the invoice(s) and the work performed
• The legal basis for the claim
• A final deadline (typically 7-14 days)
• A statement of your intention to commence legal proceedings if payment is not received

The letter should be sent via registered post or email with delivery confirmation. Keep a copy of everything.

A formal demand letter signals that you’re serious, and many clients will pay rather than face a tribunal or court claim or damage to their credit rating.

Step 4: Consider a Statutory Demand (For Companies Only)

If your client is a registered company (Pty Ltd or Ltd) and owes you $4,000 or more, you can issue a statutory demand under the Corporations Act.

A statutory demand gives the company 21 days to pay the debt or face presumption of insolvency. If they don’t pay and don’t dispute the debt, you can apply to wind up the company.

This is a powerful tool, but it only works against companies — not sole traders or individuals. It also requires strict compliance with the prescribed form and supporting affidavit.

Step 5: File a Claim in the Right Tribunal or Court

If the letter of demand doesn’t work, your next step is to file a claim. Depending on your state, that is a tribunal or the small claims side of 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 for the Local Court, not NCAT.
• 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), claims 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

Limits differ by state, as listed above. Filing fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file. The small claims process is designed to be accessible without a lawyer, though you’ll need to prepare your claim, evidence, and submissions properly.

You’ll need:

• Copies of all invoices
• Proof of work completed (photos, signed job sheets, delivery receipts, emails)
• Copies of your contract or terms of service
• Records of all communication with the client
• Your letter of demand and proof of delivery

The tribunal or court will list the matter, and if you win, you’ll get an order or judgment for payment. If the client still doesn’t pay, you can enforce it through wage garnishment, property seizure, or bankruptcy proceedings.

What If There’s a Genuine Dispute?

If the client raises a legitimate dispute about the quality of your work, you need to address it before escalating.

Ask yourself honestly:

• Did you complete the work as agreed?
• Does the client have a valid complaint about quality or scope?
• Is there a gap between what you promised and what you delivered?

If the dispute is genuine, consider:

• Offering to fix any defects at no cost
• Negotiating a reduced payment to settle the matter
• Getting an independent assessment of the work

If the dispute is invented after the fact — a common tactic to avoid payment — document everything and proceed with your demand. Tribunals typically see through spurious disputes raised only after a demand letter is sent.

How Claim Done Helps

Claim Done generates a professionally formatted letter of demand in about 5 minutes. You complete a short intake form, tell us about your invoice and evidence, and our Programmatic Algorithms draft a letter citing the applicable Australian law.

We deliver the letter to the other party by email.

Fixed fee — no subscription, no hourly billing, no surprises.

If the letter of demand doesn’t resolve the matter, Claim Done’s Tribunal Application ($97) can prepare your tribunal application (for a New South Wales debt, a Local Court statement of claim) and a witness statement for a flat fee.

Preventing Future Non-Payment

Once you recover this invoice, take steps to protect yourself going forward:

• Use written contracts — even a simple service agreement sets clear terms
• Require deposits — 30-50% upfront for new clients or large jobs
• Set clear payment terms — due on completion, 7 days, 14 days (never 30+ unless you have to)
• Invoice immediately — don’t wait weeks after finishing the job
• Follow up early — if payment is one day late, send a reminder
• Check credit history — use a service like CreditorWatch for high-value clients
• Include late fees — state in your terms that overdue invoices incur interest

Prevention is always cheaper than recovery.

Get Paid What You’re Owed

When a client won’t pay after you’ve completed the job, you have clear legal rights and practical tools to recover what you’re owed.

Start with polite follow-up, escalate to a formal demand, and if necessary, file a claim in the right tribunal or court. Document everything, stay professional, and don’t let overdue invoices drag on for months.

Generate your letter of demand now and get paid faster.

Frequently Asked Questions

How long should I wait before sending a letter of demand?

Send at least one polite reminder first. If the invoice is 14-21 days overdue and you’ve had no response, it’s time for a formal letter of demand. Don’t wait months — the longer you wait, the harder it is to recover.

Can I charge interest on an overdue invoice?

Yes, if your contract or terms of service include a late payment clause. You can also claim reasonable debt recovery costs, including the cost of your letter of demand.

What if the client says the work was defective?

If it’s a genuine defect, offer to fix it. If it’s a spurious complaint raised only after you demanded payment, document your position and proceed with your demand. Tribunals can assess whether the complaint is legitimate or a delay tactic.

Do I need a lawyer to recover an unpaid invoice?

Not usually. A letter of demand and a small claim can usually be handled without a lawyer. Claim Done prepares both for a flat fee, and small claims processes in tribunals and courts are designed for self-representation.

What happens if I win at the tribunal or court but they still don't pay?

You can enforce the order or judgment through wage garnishment, seizure of property, or bankruptcy proceedings. The order or judgment gives you legal authority to pursue enforcement through the sheriff or court enforcement office.