The short version
A late payment usually comes down to one of three things: the invoice never reached the person who pays, something on it does not match what was approved, or paying took more steps than the client would take. Fix those first, then chase in a fixed order, and charge a late fee only if the client agreed to it before the work. This page puts the steps in order and sends you to the page that goes deep on each one.
Where are you right now?
Pick the row that sounds like your situation. Each link goes to the page that owns that step, so this page stays short.
| Situation | What to do | Go to |
|---|---|---|
| You have not sent the invoice yet | Put a real due date, the terms and a payment link on it, and ask for a deposit on larger jobs. | Payment terms, deposit invoices, due date calculator |
| It is due in a few days | Send a two line check that it is in their system for payment, with the PO number if they use one. | How to chase an unpaid invoice |
| It is one to fourteen days late | Send a short reminder, then call. Count from the due date, not the invoice date. | Chasing an overdue invoice, days past due calculator |
| The client says something is wrong | Ask in writing which line, then credit, split or confirm. | Disputed invoices |
| Nobody replies and you do not know why | Check the five points an invoice can stall at: received, identifiable, approved, changes documented, payable. | Why an invoice is not paid |
| It is two weeks or more late | Send an overdue notice. Add the late fee only if it was agreed. Send a statement of the whole balance. | Late fee generator, late fee laws, account statement |
| It is thirty days or more late | Call for a payment date, then send a final demand naming one action you will take. | Final demand and next steps |
| It keeps happening | Measure how long you actually wait, and what it costs. | DSO calculator, late payment cost, late payment statistics |
Before the invoice is late
Half of the chasing is avoided by the document itself. Send it the day the work finishes, addressed to the person who pays, with the due date written as a date instead of only a term. Put the payment link on it, because paying should take fewer steps than reading it did. On a large invoice, a deposit means the client has already paid something before the work starts, and on a longer job progress billing puts a due date on each stage instead of one at the end.
The wording of the terms matters less than using one term consistently and printing the due date beside it. The payment terms guide covers the common terms and what each one means in dates.
The order to chase in
It is the same amount asked for several times. What changes is who reads it and what follows, not the tone.
| When | Step | What it says |
|---|---|---|
| The day after the due date | Reminder email | Invoice number, amount, original due date, the invoice attached again and a way to pay. Nothing about fees. |
| About a week later | Phone call | One question: when will it be paid, and who releases payment? Confirm the date by email the same day. |
| About two weeks late | Overdue notice | Original amount, the agreed late fee if there is one, the new balance and what happens next. |
| About thirty days late | Final demand | The total, a date, and the one action you will take if that date passes. |
| About sixty days late | Decide about supply | Stop taking new work from the account, or keep going on prepayment. Hold to what you decided in advance. |
Name only an action you will take. A threat that is not carried out tells the client the next one is empty too. The exact wording of each message is on how to chase an unpaid invoice, and the staged approach by days overdue is on chasing an overdue invoice. What happens after the final date (small claims, liens, collections agencies) is covered on the first of those pages.
The late fee, briefly
A late fee is a contract term, not a right. It has to be on something the client accepted, such as an approved quote or a signed contract, and repeated on every invoice. The common US figure is 1.5% a month, which is 18% a year, usually after a grace period of about a week. On a $2,400 invoice that is 20 chargeable days late, the fee is $2,400 x 0.18 / 365 x 20, which is $23.67. The late fee generator does the arithmetic and writes the notice, and late fee laws by state explains what your state sits behind the agreement. This is general information, not legal advice.
When late payment is a habit
One slow client is a client problem. Slow payment across many clients is usually a terms problem, and one number tells the two apart. Days sales outstanding is the average number of days it takes to collect after a sale on credit. If your terms say net 30 and the number is 58, the gap is being financed by you. The collection effectiveness calculator and the receivables aging calculator show how much of what you are owed is current and how much is old.
The older a debt gets, the less likely it is to be paid in full, and a write-off costs profit, not revenue. At a 20% margin, $4,200 written off takes $21,000 of new work to replace. The bad debt calculator shows the cost at your own margin, and the late payment statistics page lists sourced numbers on how common late payment is.
Tools for each step
Common questions
When should I start chasing a late invoice?
The day after the due date, counted from the due date rather than the invoice date. A short reminder with the invoice attached and a way to pay is normal at that point and is not an accusation. Most late invoices are sitting in someone's inbox, not being withheld.
Can I charge a late fee on an invoice that is already late?
Only if the client agreed to it before the work, for example on an approved quote or a signed contract. A fee that first appears on the overdue invoice was never agreed, and that is the usual reason one is challenged and dropped. Without it you can still pursue the debt, and your state's statutory interest may apply through the courts.
What do I do if the client says the invoice is wrong?
Ask in writing which line is wrong and what they expected. If the invoice is wrong, credit it and reissue it. If only part is queried, ask them to pay the agreed part now and treat the rest as a separate conversation. If nothing is wrong, it is not a dispute and the normal overdue steps continue.
How do I know whether late payment is a one-client problem or a terms problem?
Measure it. Days sales outstanding turns every invoice you are waiting on into one number, the average days it takes to get paid. If it sits well above your terms across many clients, the terms or the way you invoice are the cause. If one client drives it, deal with that client.
When should I stop working for a client who has not paid?
Pick a point and hold to it before you need it. Sixty days past due is a reasonable line, because continuing to supply an account that has stopped paying turns a manageable debt into a larger one. Check your contract for a right to suspend work.
What this is. A guide written by InvoiceTools. It is not legal advice. Late fee, interest and collection rules differ by state, so have any wording you rely on checked for your state before it goes on a real document.
Last reviewed by InvoiceTools, Houston, Texas, on 2 November 2026.