Client Won’t Pay Your Invoice? Here’s What to Send First

You did the work. You sent the invoice. They promised to pay. Then nothing.

When a client won’t pay, the answer is not endless chasing or giving up. It is a Letter of Demand — a formal notice stating what they owe, why they owe it, and what happens if they don’t pay within a set deadline.

Why a Letter of Demand Works

A Letter of Demand is not a polite reminder. It is a formal legal notice that signals you are prepared to escalate.

Most clients who ignore friendly follow-ups will respond because:

• It shows you are serious
• It creates a paper trail required for tribunal or court proceedings
• It often triggers immediate payment to avoid legal costs
• Tribunals expect proof you attempted recovery before filing

Skip this step and a tribunal may ask why you did not give the debtor a chance to pay first.

What to Include in Your Letter of Demand

A Letter of Demand must be clear, specific, and legally sound. Vague threats or emotional language weaken your position.

Include:

Your details and the debtor’s details Full names, addresses, ABN if applicable.

The amount owed State the exact figure, including GST if applicable. Break it down by invoice number, date, and description of work.

The work or goods provided Summarise what you delivered. Attach copies of the invoice, contract, or quote.

Previous attempts to recover List dates you sent reminders, made calls, or sent emails. This shows you tried to resolve it informally first.

The legal basis for the claim Reference the contract terms or the general law of contract. If you had a written agreement, cite the payment clause.

The deadline to pay Give them a reasonable period — typically 7 to 14 days from the date of the letter. Be specific: “Payment must be received by 5:00 PM on [date].”

What happens if they do not pay State clearly that you will commence tribunal or court proceedings without further notice.

How to pay Provide your bank details, PayID, or other payment method.

How Long Should You Wait?

The standard deadline is 7 to 14 days from the date the letter is sent.

Seven days is appropriate if:

• The debt is small and straightforward
• You have already sent multiple reminders
• The client has been unresponsive for weeks

Fourteen days is appropriate if:

• The debt is larger or more complex
• The client has been communicating but not paying
• You want to appear more reasonable before escalating

Do not give them 30 days unless there is a genuine reason. The longer you wait, the more time they have to move assets or wind up their business.

What Happens If They Still Don’t Pay?

If the deadline passes and you receive no payment or response, you have three main options.

Option 1: File a Tribunal Application

For debts under the tribunal limit in your state (typically $10,000 to $25,000), you can file with the relevant civil and administrative tribunal:

• NSW: NSW Civil and Administrative Tribunal (NCAT)
• VIC: Victorian Civil and Administrative Tribunal (VCAT)
• QLD: Queensland Civil and Administrative Tribunal (QCAT)
• WA: State Administrative Tribunal (SAT)
• SA: South Australian Civil and Administrative Tribunal (SACAT)
• TAS: Tasmanian Civil and Administrative Tribunal (TasCAT)
• ACT: ACT Civil and Administrative Tribunal (ACAT)
• NT: Northern Territory Civil and Administrative Tribunal (NTCAT)

Tribunal filing fees are typically $50 to $200. If you win, the tribunal will issue an order requiring the debtor to pay. If they still refuse, you can enforce the order through a sheriff or bailiff.

Option 2: Commence Court Proceedings

For debts above the tribunal limit, you can file in the Magistrates Court or District Court. This is more expensive and slower, but may be necessary for larger claims.

Court proceedings require:

• A Statement of Claim setting out the facts and legal basis
• Filing fees (typically $200 to $500 depending on the amount)
• Service of documents on the debtor
• Attendance at hearings if the matter is defended

Most unpaid invoice claims are undefended. In that case, you can apply for default judgment and move straight to enforcement.

Option 3: Engage a Debt Collector or Lawyer

If you do not want to handle the process yourself, you can:

• Hire a debt collector — they work on commission (typically 10-30% of the recovered amount)
• Instruct a lawyer — they can send a more formal demand, file tribunal or court documents, and represent you at hearings

Both options cost money, so weigh the cost against the size of the debt. For debts under $2,000, it may not be worth paying someone else to chase it.

Special Case: Company Debtors Owing $4,000+

If the debtor is a registered company (Pty Ltd or Ltd) and owes you $4,000 or more, you have a more powerful option: a Statutory Demand under the Corporations Act.

A Statutory Demand gives the company 21 days to pay or face wind-up proceedings. If they do not pay and do not dispute the debt, you can apply to have the company wound up. This is a serious step, but often the fastest way to recover money from a company that is ignoring you.

ClaimDone prepares Statutory Demands for $197, including the required Form 509H and supporting affidavit template.

How Claim Done Helps

ClaimDone generates a professionally formatted Letter of Demand in under 60 minutes.

Here is how it works:

1. Complete a 5-minute intake form — tell us what happened, upload your invoice and any supporting documents
2. Our Proprietary AI Engine drafts the letter — referencing applicable Australian law, formatted for immediate use
3. We send it for you — via registered post and email, with tracking confirmation

The letter is ready to send the same day. If the client still does not pay, you have a complete paper trail to support your tribunal or court application.

Flat fee: $97. No subscription. Australia-wide.

Timeline: What to Expect

Here is a realistic timeline for recovering an unpaid invoice:

Day 1: Send the Letter of Demand Day 7-14: Deadline for payment passes Day 15: File tribunal application (if no payment received) Day 30-60: Tribunal hearing scheduled Day 60-90: Tribunal issues order for payment Day 90+: Enforce the order if debtor still refuses to pay

Most clients pay within the first 14 days. If they do not, the tribunal process adds another 2-3 months. Enforcement can add another month or more, depending on whether the debtor has assets.

What Not to Do

Do not:

• Send vague threats — “I will take legal action” without specifics makes you look weak
• Harass the debtor — excessive calls, abusive language, or public shaming can expose you to defamation or harassment claims
• Wait too long — debts become harder to recover over time, and limitation periods apply (typically 6 years for contract claims in most Australian jurisdictions)
• Accept partial payment without a written agreement — if they pay $500 on a $2,000 debt, get it in writing that the rest is still owed and when it is due

Stay professional, stay documented, stay firm.

Final Step: Send the Letter

If a client won’t pay your invoice, the first formal step is a Letter of Demand. Most clients pay within days of receiving it. If they do not, you have the evidence you need to file a tribunal application or commence court proceedings.

Do not wait. Do not chase endlessly. Send the letter, set the deadline, move forward.

ClaimDone prepares and sends your Letter of Demand in under 60 minutes. Upload your invoice, answer a few questions, and we handle the rest — $79 flat fee, no subscription, done today.

Start your Letter of Demand now.

Frequently Asked Questions

How much does it cost to send a Letter of Demand?

ClaimDone prepares and sends a Letter of Demand for $79 flat fee. This includes drafting the letter, referencing applicable law, and delivering it via registered post and email. No subscription, no hidden costs.

What if the client disputes the invoice?

If the client genuinely disputes the invoice (for example, they claim the work was defective or incomplete), a Letter of Demand may not be appropriate. You may need to negotiate a resolution or seek advice from a qualified lawyer. Do not use a Letter of Demand for genuinely disputed debts.

Can I send a Letter of Demand myself?

Yes. You do not need a lawyer to send a Letter of Demand. However, it must be professionally formatted, reference the correct law, and include all required elements. Claim Done automates this process so you do not have to research or draft it yourself.

What happens if they ignore the Letter of Demand?

If they do not pay or respond within the deadline, you can file a tribunal application or commence court proceedings. The Letter of Demand becomes evidence that you attempted to recover the debt before escalating.

How long does it take to get paid after sending a Letter of Demand?

Most clients pay within 7 to 14 days of receiving the letter. If they do not pay, you will need to file a tribunal application, which can take another 2-3 months to resolve.