Unpaid invoices are the single biggest cash-flow risk for Australian sole traders. There is no AR clerk, no debt-recovery team, no in-house counsel — just you and a customer who has worked out that not paying carries no immediate consequence. A clear playbook removes the guesswork and makes recovery a sequence of small, defined steps rather than a fog of frustration.
Here is the sequence that recovers most sole-trader debts in Australia, with what each step does and what it costs.
Why these invoices stall
Customers who pay every other supplier on time but slow-walk yours have made a triage decision. The supplier who can suspend service tomorrow gets paid first. The lender who reports to a credit bureau gets paid second. The creditor who has just sent a formal legal letter gets paid third. Polite chasers and weekly statements sit at the bottom of the priority list. Until you change the legal cost side of the equation, the maths will not move.
Step 1 — Letter of Demand
The single most cost-effective action available. A formal letter on legal letterhead identifying the debt, the contractual basis, the statutory interest entitlement where applicable, and the specific tribunal or court that will be invoked. Sets a 14-day deadline. Recovers a meaningful proportion of debts on its own. $79 with Claim Done.
Step 2 — Final Demand
If the Letter of Demand is ignored, a Final Demand is the calibrated next step — references the prior demand, names the specific tribunal or court that will be invoked, and gives 7 days. Removes any “I never received it” or “I thought we were still talking” defence. $79 with Claim Done.
Step 3 — Tribunal Application
For most sole-trader debts under the cap in your state, the small claims tribunal (NCAT in NSW, VCAT in Victoria, QCAT in Queensland and equivalents) is the next step. Tribunals are designed to be navigated without lawyers, filing fees are modest and recoverable, and outcomes are enforceable as judgments. $79 with Claim Done to draft and lodge the application.
Step 4 — Statutory Demand or Court
For corporate debtors over $4,000, a Statutory Demand under section 459E of the Corporations Act 2001 sits parallel to the tribunal route and is materially more powerful — 21 days to pay or face a presumption of insolvency. For mid-size debts above the tribunal cap, the Magistrates Court in your state is the appropriate venue.
What Claim Done delivers across the playbook
- Each document drafted on legal letterhead with proper jurisdiction-specific framing
- Statutory interest, recovery costs and escalation paths handled correctly at each step
- Same-day turnaround on letters; tribunal applications drafted within standard windows
- Flat-fee pricing — $79 for letters and statutory demand, $79 for tribunal applications
- No retainer, no scope creep, no surprise bills
Why the sequence works
Each step is calibrated to do one thing — change the debtor’s calculus about the cost of not paying. Most debts are recovered at step 1. A meaningful proportion of the remainder are recovered at step 2. By the time you reach step 3 or 4, the small share of cases that get there are typically the ones where the debtor genuinely cannot pay — and those are exactly the ones where formal action is most important. The playbook is short because it does not need to be long.