The Customer Who Won't Pay: The Chase Ladder

It's the fourth Friday since you finished the job. The invoice sits unpaid. The customer read your text and said nothing. You need that money for materials on Monday, and you're stuck deciding whether to nag again or write it off.

Here's the fix: chase in a fixed order, wait a set time at each step, and keep everything in writing. Do that and most invoices get paid before you ever mention a debt collector.

Key takeaways

• Escalate in order: reminder, phone call, formal notice, letter of demand, then external recovery.
• Get it in writing first: deposit, terms and a payment due date agreed before the tools come out.
• Two dead-debt signs: weeks of silence, or a sudden dispute over work they already signed off.
• Stay calm at every rung: the goal is payment, not a fight you win on principle and lose on cash.

What to have in writing before you chase anyone

Before step one, you need proof the debt exists and the terms were agreed. That's a quote they accepted, an invoice with a due date, and any messages where they approved the work or a variation. Without these, every rung on the ladder gets weaker.

Set the terms up front so there's nothing to argue about later. Name the due date in days. State any late fee. Take a deposit where you can.

A firm deposit changes the whole conversation. If you've never asked for one, the deposit conversation walks through when and how, and it's the single move that stops most non-payment before it starts.

Step 1: The friendly reminder (day 1 to 3 overdue)

Send a short, warm reminder the day after the due date passes. Assume they simply forgot, because usually they did. Keep it to two lines: the invoice number, the amount, and a link to pay.

No accusation. No fee talk yet. A plumber who texts "Hi Dave, invoice #204 for $680 fell due yesterday — here's the link to sort it, cheers" gets paid on the spot more often than one who waits a fortnight and comes in hot.

Wait three business days for a reply.

Step 2: The phone call (day 7 to 10)

Ring them. A voice call cuts through where a fifth text gets ignored. Ask if there's a problem with the invoice or the work, listen, then agree a firm date to pay.

Write down what they promise and send a one-line message confirming it. "Thanks for the call — you'll pay the $680 by Friday the 12th." Now the promise is in writing too.

If you're always chasing quotes that go quiet before the job even lands, automating the follow-up on unanswered quotes stops the same silence happening at the front of the pipeline.

Step 3: The formal notice (day 14 to 21)

Send a written notice that the account is overdue and states what happens next. This is firmer than a reminder and still not legal. Put the original due date, the days overdue, any late fee you flagged in your terms, and a clear new deadline of seven days.

Be specific about the consequence. "If payment isn't received by [date], we'll issue a formal letter of demand." If you charge interest or a late fee, the rules on when you can charge late fees and how to word them matter here, so get the wording right before you send.

Step 4: The letter of demand (day 21 to 30)

A letter of demand is a formal, final written request for payment before you take further action. It names the debt, the work, the amount, the deadline, and states that you'll pursue recovery through a tribunal or debt collector if they don't pay.

You can write one yourself in plain English. Many owners do. A solicitor's letterhead adds weight if the amount is large or the customer is a business, but it isn't required for a straightforward debt.

Keep the tone factual. You're documenting, not venting.

Step 5: External recovery (30+ days, no response)

Only now do you weigh a debt collector or a small claims tribunal. This is where you count the cost against the debt. Chasing a small invoice through weeks of admin and fees can cost more than the invoice itself.

Here's what we'd do: escalate hard on debts worth the fight, and cleanly write off the tiny ones so you stop bleeding hours on them. Then fix the front end so it doesn't recur.

The two signs a debt is never getting paid

Watch for two signals. First, total silence for weeks across every channel after they've clearly seen your messages. Second, a sudden dispute over work they already accepted or signed off, raised only once the bill arrived.

Either one means you're now in a fight, not a follow-up. Decide fast whether the amount justifies formal recovery, and if it doesn't, close it out and protect the next job with a deposit and clear terms. Getting the quote and terms right before you start is what keeps you off this ladder next time.

How IgniteOS does this for you

IgniteOS runs the whole chase for you so you're not setting reminders by hand. Automated payment reminders and text-to-pay send the friendly nudge, the firmer notice and the pay link on a schedule you set, and log every message as your written record.

Take deposits and let customers pay on the spot from the invoice with built-in payments, so fewer debts reach step three at all. See how it all fits on the get paid faster page, and if you want the on-site angle, here's how tradies get paid on the day, not 30 days later.

The fastest win: turn on automated reminders today, and the next overdue invoice chases itself while you're on the tools.

Frequently asked questions

What's the order for chasing an unpaid invoice?

Chase in five steps: a friendly reminder at day one to three overdue, a phone call at day seven to ten, a formal overdue notice at day fourteen to twenty-one, a letter of demand at day twenty-one to thirty, then external recovery beyond thirty days. Wait a set time at each rung and keep every message in writing.

Do I need a solicitor to write a letter of demand?

No. You can write a letter of demand yourself in plain English, naming the debt, the work, the amount, a deadline and what happens if they don't pay. A solicitor's letterhead adds weight for large debts or business customers, but it isn't required for a straightforward unpaid invoice.

When is it not worth chasing a debt?

When the cost of chasing beats the debt. Weeks of admin and tribunal or collector fees on a small invoice can cost more than the invoice itself. Escalate hard on debts worth the fight, write off the tiny ones cleanly, then protect the next job with a deposit and clear written terms.

How do I stop non-payment happening again?

Set terms up front and take a deposit before the job starts. Name the due date, state any late fee, and get the quote accepted in writing. IgniteOS automates reminders and text-to-pay so overdue invoices chase themselves; see the get paid faster page for how it fits together.