How to handle a client who pays late

Published 2026-11-03

Short answer

Treat the first reminders as service. Put the due date and terms on the invoice, send a friendly note a day after it is late, then call, then write formally, following a schedule you wrote down. Keep a record of every contact. Interest, fees, pausing work and liens depend on your contract and local law.

Late payment is usually forgetfulness, a missing purchase order or an approval stuck on someone's desk, not bad faith. Treat the first reminders as service, not conflict. A fixed routine means you chase every invoice in the same way, and nobody feels singled out.

How do I prevent most late payments?

State the due date and the payment terms on the invoice, as described in invoice numbers and payment terms
Send the invoice the day the work is finished. Invoicing two weeks later pushes every payment back by two weeks
Address it to the person who approves payments, and ask who that is before the job starts
Put the bank details and the invoice number on the PDF so the payment can be matched
Take a deposit and bill in stages on bigger jobs, as in deposit and progress payment invoices

What reminder schedule works for 14 day terms?

Day 12, optional: a friendly note that the invoice is due in two days, useful for new customers
Day 15, one day late: a short email with the invoice attached again
Day 21: a second email and a phone call to ask if anything is blocking the payment
Day 28: a formal letter that states the amount, the original due date and a new date by which you expect payment
Day 45: a final notice that says what you will do next if it stays unpaid

Adjust the days to your own terms, but write the schedule down and follow it. Consistency is what keeps the tone friendly.

What should the first reminder say?

"Hi Maria, a quick reminder that invoice 1042 for 2,350, due on 14 March, has not reached us yet. The bank details are on the attached copy. Could you let me know when the payment will go out? If anything on the invoice is unclear, call me and I will sort it today. Thank you."

Keep it short, name the invoice number, the amount and the due date, and ask one question. A reminder that sounds like an accusation makes the next conversation harder.

Should I call, and how do I confirm it in writing?

A phone call finds out the real reason faster than three emails. Ask "Is something holding up the payment?" and listen. Afterwards send two lines that repeat what you agreed, for example "As discussed, you will pay 2,350 by Friday 28 March." That message becomes your record, and a date that someone has promised in writing is hard to ignore.

What if the customer cannot pay in one go?

If the customer cannot pay in one go, a written plan beats silence. For example, 2,400 can be paid in three installments of 800 on fixed dates. Say clearly that the full amount stays due if one date is missed, and keep a note of what has been received and what is still open. Whether you may add interest or fees depends on what you agreed and on local rules.

What if the customer disputes the invoice?

Ask exactly which item is disputed and why, in writing. Check it against the accepted estimate and the change order records. If part of the invoice is not disputed, ask for that part to be paid now. Photos and dated reports from the job, as in job site photo documentation tips, show that the work was done.

Can I pause work, charge fees or collect?

If stages remain, whether you may pause work until the overdue invoice is paid depends on your contract and local law, so read the contract and give written notice before you stop. In many places late fees and interest must be agreed in advance, while others give a statutory right to interest and a fixed recovery fee on late business-to-business invoices (the UK and the EU, for example), and some limit what you may charge. Some places also have special claims or lien procedures for construction work, often with short deadlines. These rules differ widely, so check your local rules or ask a local professional before you act. This guide is general information, not legal advice.

A collection agency or a small claims court can be an option for larger sums. Weigh the cost and time against the amount owed, and ask for fees in writing before you hand anything over.

What should I record about every contact?

Date, method and person for each reminder or call
What was promised and by when
The accepted estimate or written agreement
Dated site reports and photos that show the work was completed
A copy of every invoice as sent, with its number

Where SiteReporta helps

SiteReporta builds invoices as PDFs with a number, a due date based on your default payment days (14 unless you change it) and your bank details. With SiteReporta Pro the PDF can also carry a pay-online link or QR code that points to your own page. Site reports with photos give you the dated evidence of completed work.

The app does not take payments, record whether an invoice was paid or send overdue reminders, so keep your own list of invoices with the date sent, the due date and the date paid, and check it every week.

Frequently asked questions

When should I send the first payment reminder?

On 14 day terms, one day after the due date, with the invoice attached again. A friendly note two days before the due date can help with new customers.

Can I charge interest on a late invoice?

It depends on your contract and local law. In many places late fees must be agreed in advance. The UK gives a statutory right to interest of 8% over the Bank of England base rate on late business-to-business debts, and the EU directive sets at least 8 percentage points over the reference rate.

Is there a fixed fee for recovering a late debt?

In the UK a fixed sum of 40, 70 or 100 pounds applies by debt size on late business-to-business invoices, and the EU directive sets a minimum of 40 euros. Elsewhere it depends on your contract and local law.

Can I stop work if the customer has not paid?

Whether you may pause work depends on your contract and local law. Read the contract and give written notice before you stop.

What if the customer disputes the invoice?

Ask which item is disputed and why, in writing. Check it against the accepted estimate and change order records, ask for the undisputed part to be paid now and use dated site reports and photos to show the work was done.

Sources

Official sources for the rules and figures mentioned in this guide. Rules change and differ by place, so check the current text and your local rules.

General guidance, not legal, tax or accounting advice. Rules differ by country and trade.