How to chase overdue invoices: a receivables aging playbook

Most late payments aren't disputes. The invoice went to the wrong inbox, it is waiting for an approval nobody chased, or it simply slipped. A small, predictable routine fixes most of them, and it works better than a heroic chase at the end of the quarter.

This guide sets out that routine: how to see what is late, what to send and when, and how to keep the problem from coming back.

Start with an aging report, not a feeling

An aging report groups unpaid invoices by how late they are. The usual buckets are:

Two numbers matter more than the total. The first is how much sits in the 31+ day buckets, because that is the money most likely to go bad. The second is who owes it: one client owing half of your overdue total is a different problem from twenty clients owing a little each.

Run the report weekly, on the same day. In FocalHQ the receivables dashboard shows these buckets and the top debtors, and overdue invoices appear on the home screen, so the weekly look takes a minute instead of an afternoon.

Make the invoice easy to pay in the first place

Many "late" invoices were hard to pay from the start. Before you chase, check that every invoice carries:

• the client's exact legal name, address and VAT number,
• a purchase order or reference number, if the client uses them,
• the due date written as a date, not just "30 days",
• your bank details, IBAN and the currency you expect,
• the name of a person to contact with questions.

If you invoice in several currencies, say which currency you expect to be paid in and keep the amount in that currency on the invoice. Ambiguity about currency is a reliable way to get paid late and short.

The routine: what to send, and when

Pick a cadence and apply it to every client. Consistency is what makes it feel professional rather than personal.

1. Three days before the due date: a short, friendly note with the invoice attached. "Just a heads-up that invoice 0184 is due on Friday."
2. One day late: a reminder that assumes good faith. Ask whether they received it and whether anything is missing.
3. Seven days late: a reminder to the same person, copying whoever approves payments, if you know them.
4. Fifteen days late: a phone call. Ask for a payment date, and write it down.
5. Thirty days late: a formal letter that states the amount, the original due date, the agreed payment date if there was one, and what happens next.
6. Forty-five to sixty days late: decide. Pause further work, agree a payment plan, or hand the claim to a collection service or lawyer.

Keep every message short and specific: the invoice number, the amount, the due date and one clear request.

What to say on the phone

A call at fifteen days late recovers more money than any email. Three questions are enough:

• "Have you received invoice 0184 for €8,400?"
• "Is there anything stopping it from being paid?"
• "What date can I expect payment?"

If there is a problem — a wrong quantity, a missing PO — fix it the same day and send the corrected invoice. If there is no problem, the date they give you becomes the next checkpoint.

Know your rights, and use them sparingly

In the European Union, late payments between businesses fall under the Late Payment Directive (2011/7/EU). In short: unless you agreed otherwise, payment is due within 30 days; contractual terms between businesses generally shouldn't exceed 60 days; and you are entitled to statutory interest and a fixed €40 compensation per late invoice. National rules implement the directive with their own details, so check how it applies where you and your client are based — the directive on EUR-Lex is the starting point.

Mentioning that interest exists is often enough. Actually charging it is a decision about the relationship, not just the money.

Stop it happening again

Once a month, look back rather than forward:

• Which clients were late more than once? Ask for a deposit, shorter terms or payment on delivery.
• Which invoices were disputed? The fix is usually upstream — clearer quotes, signed delivery notes.
• How long did you take to send the invoice? Late invoicing is the most common cause of late payment, and it is fully in your control.

Invoices are the start of getting paid, not the end of the job. A short weekly routine, the same for every client, turns chasing from an awkward favour into ordinary business.