Get Your Overdue Invoices Paid Before the Christmas Shutdown

An overdue invoice you start chasing in mid-December usually sits unread until February. Most Australian businesses close for two to four weeks over Christmas and the New Year, court and tribunal registries wind down, and the customer who owes you money has every excuse to let your email wait. If you are owed money, the time to act is now, while invoices still get opened and debtors still answer the phone. Claim Done drafts a formal letter of demand from your answers for A$49, so you can put the debt in writing today and get a result before the break rather than after it.

The December timing trap nobody plans for

Here is the mistake that costs small businesses a month of cash flow. You send a demand on 15 December with a 14-day deadline. The debtor’s office shuts on 20 December and does not reopen until the middle of January. Your deadline expires on 29 December, while the invoice sits in an inbox nobody is reading. You cannot fairly escalate on a deadline the other side never saw, so in January you reset the clock and send the whole thing again. The debt that could have been settled before Christmas is now a February problem.

Run the same demand in early November and the maths flips. The invoice gets read, the deadline falls well before anyone goes on leave, and you either get paid or you have clean grounds to move to the next step. There is a second reason to act early: getting one large payment in before you close for your own break is often the difference between a relaxed January and a scramble.

Start with a reminder that sets a date

The official starting point is not a threat. The Australian Government’s guidance on recovering money owed walks through a clear order: check your agreement, then send a reminder, then a letter of demand if that is ignored, and only then formal steps (see business.gov.au on preventing and recovering unpaid debt).

A good reminder is short and specific. State the invoice number, the amount, the original due date, and a firm new date to pay, say within seven days. Offer the ways they can pay. If cash flow is their problem, a brief payment plan in writing is better than silence. Keep every reminder, because the paper trail matters if you end up at a tribunal. The government’s own invoicing guidance makes the same point: clear terms and records are what let you escalate cleanly later.

Then a letter of demand that actually lands

When a reminder goes nowhere, the next step on the government’s list is a letter of demand. It is the document that signals you have moved from chasing to acting, and for a lot of debtors that shift in tone is the thing that gets them to pay.

A demand that works says six things plainly: who owes the money, the invoice and the amount, the original due date, a clear final date to pay, exactly how to pay, and what you will do if the date passes. Vague wording invites a vague response. A dated, itemised demand with a real deadline does not.

This is the document Claim Done was built for. You answer a few questions about the debt, Claim Done drafts the letter, you review and approve it, and then it is sent by email. One flat fee of A$49, no subscription and no lawyer’s retainer. If you want to see the shape of one first, the chasing an unpaid invoice guide sets out the full path from first reminder to formal recovery.

If the demand is ignored: the paths after

What comes next depends on why you are not being paid.

If there is a genuine dispute about the work or the goods, the cheaper road is dispute resolution before any claim. The government guidance points to the Australian Small Business and Family Enterprise Ombudsman’s low-cost dispute support and to accredited mediation. That keeps the matter out of a courtroom and can land before the holidays.

If the debtor is simply not paying and the debt is not in dispute, small claims is the next lever. In New South Wales, the Local Court’s Small Claims Division hears claims up to $20,000, and its General Division handles claims over $20,000 up to $100,000 (see the NSW Local Court civil jurisdiction page). Every state and territory has its own small claims court or tribunal with its own limit and filing fee, so check the one for where the debt arose and confirm the current fee on that court’s website. When you are ready to lodge, a Tribunal Application sets out your claim and evidence in the form the tribunal expects. Winning is not the same as being paid: if a debtor still refuses after an order is made, that order can be registered with a court and enforced, which is one more reason to start early enough that you are not beginning that process in the new year.

If the debtor is a company rather than a person, a creditor’s statutory demand is a different and far sharper tool. It gives the company a strict, short statutory window to pay before it can be presumed insolvent, which is why it tends to focus the mind of a business that has been ignoring ordinary invoices. It is not for disputed debts, and the rules are specific, so read how it works first in the statutory demand guide. Claim Done’s Statutory Demand is A$97; the full list is on the pricing page.

Mind the clock, and the holiday deadline trap

Two clocks matter here. The first is the limitation period: in most states you have six years from when a debt falls due to take action, and three years in the Northern Territory. That is not a worry for a recent invoice, but old debts you have been meaning to chase can quietly pass the point where a court will hear them, as the statute-barred debt guide explains. If an invoice has been sitting since the start of the year, do not let it drift through another summer.

The second clock is the one you set yourself. Whatever deadline you put on a reminder or a demand, make it fall before the shutdown, not during it. A deadline of 18 December gives the debtor a working window to respond. A deadline of 2 January gives them a reason to ignore you until they are back at their desk.

Add the costs your agreement lets you claim

Many invoices are worth more than their face amount by the time they are overdue. If your contract or your invoice terms allow interest on late payment or a late-payment fee, you can usually include that in the reminder and the demand, provided the term was agreed before you did the work. The same goes for any agreed collection or administration cost. Spell the figure out rather than leaving it as a vague ‘plus costs’, so the debtor sees the number climbing and has a reason to settle now rather than in February. Keep the claim to what your agreement actually supports: a demand that overreaches is easy to argue with, and a tribunal will only award what you can back up with the paperwork.

What Claim Done does, and what it costs

Claim Done turns your answers into a ready-to-send document for a fixed fee: A$49 for a letter of demand, A$97 for a Statutory Demand or a Tribunal Application, with the full list on the pricing page. You review and approve every document before anything is sent, so nothing goes out until you are happy with it. Claim Done is not a law firm. It builds the document from the facts and evidence you provide, Australia-wide, at a flat fee with no subscription and no retainer.

Acting this week is worth it for one plain reason. A demand drafted today can be in the debtor’s inbox this afternoon, with a deadline that still means something before the holidays. The same letter in January is a month slower and a month colder.

Owed money you would rather have in before you close for the year? Start your letter of demand on Claim Done: answer a few questions about the debt, review the draft, and approve it to send. Do it before December, and your deadline lands while the invoice can still be read.

Frequently asked questions

How long should I give someone to pay a letter of demand before Christmas?

Set a clear, specific date rather than a vague 'as soon as possible'. Seven to fourteen days is common, but the key before the holidays is to pick a date that falls while the debtor is still at work, not during their shutdown. Keep a record of when and how you sent it.

Can I take someone to a small claims court or tribunal over an unpaid invoice?

Yes, once reminders and a demand have been ignored. The forum and limit depend on your state and the amount. In New South Wales, for example, the Local Court's Small Claims Division hears claims up to $20,000. Check the court or tribunal for where the debt arose and confirm the current filing fee on its website.

What if the business that owes me is a company, not a person?

A creditor's statutory demand may be available. It gives the company a strict, short statutory window to pay before it can be presumed insolvent, which makes it a strong tool for a plain, undisputed debt. It is not for disputed amounts, so read how it works before you send one.

Will chasing an invoice over the holidays damage the relationship?

Asking to be paid for work you have done is normal business, not an act of hostility. A brief, dated reminder before any formal demand keeps the tone civil while still making it clear you expect payment. Most professional clients understand that a business cannot carry unpaid invoices into a new year.

How much does a letter of demand cost with Claim Done?

A letter of demand is A$49 as a flat fee. You answer a few questions, review the draft, and approve it before it is sent by email. There is no subscription and no retainer. The full price list, including the A$97 Statutory Demand and Tribunal Application, is on the pricing page.