Quick answer
When a large customer doesn't pay, call their accounts payable and your contact the same day, confirm whether the invoice is approved and when it will be paid, and put the conversation in writing. While you chase, work out exactly what the missing money was meant to cover. A short-term unsecured cash-flow loan, sized on turnover, often bridges the gap, with same-day funding possible for smaller amounts.
Key points
- Most late payments are process problems — unapproved invoices, missing purchase orders, wrong bank details.
- One phone call to the right person often achieves more than a week of emails.
- Fund what the missing money was meant to cover, not necessarily the whole invoice.
- If the customer may be insolvent, act faster and get advice on recovery.
- Call today
- Accounts payable + your contact
- Bridge
- Unsecured cash-flow loan
- If disputed
- Get advice, consider ASBFEO
Why does one unpaid invoice cause so much damage?
A healthy business can still be one invoice away from a crisis. If a client owes you $80,000 and that payment was meant to cover payroll, the BAS and a supplier account, its absence ripples through all three. The business is profitable on paper and short of cash in reality.
Large customers — government agencies, head contractors, national retailers — often pay late for administrative reasons rather than inability. An invoice sits in an approval queue, a purchase order number is missing, a new accounts system has changed the payment run. None of that helps you on Thursday when wages are due.
What should I do today?
- Find out where the invoice actually is. Call accounts payable directly and ask: has it been received, approved and scheduled? Which payment run?
- Call your relationship contact as well. They can often push an approval through faster than anyone in accounts.
- Fix any paperwork problem immediately — reissue with the right PO, ABN, bank details or reference.
- Confirm the outcome in writing with a short email recording the promised date.
- List what the money was meant to cover and when each item is due.
- Decide on a bridge for anything that can’t wait.
Our guide on calling creditors to buy time works the other way too — the same principles help you push customers to pay.
How do I bridge the gap while I chase?
| Situation | Route | What’s possible |
|---|---|---|
| One late invoice, trading well | Emergency cash-flow loan | Same-day funding possible for smaller amounts |
| Customers regularly late | Line of credit | Draw while you wait, repay when they pay |
| Very large amount, long delay | Property-secured caveat or second mortgage | $20k to $250k same day possible |
| Customer may be insolvent | Bridge plus recovery advice | Plan repayment that doesn’t rely on recovery |
Unsecured, cash-flow and line-of-credit options are typically $5,000 to $500,000, sized on turnover and recent bank statements. Lenders like a clear exit, and an approved invoice from a reliable customer is a good one.
Illustrative example: a subcontractor waiting on a head contractor
Illustrative only. An electrical subcontractor in Brisbane is owed $112,000 by a head contractor on a commercial project. The payment claim is certified but the head contractor’s payment run has slipped by three weeks. Wages of $38,000 are due Friday and the BAS is due at the end of the month.
The owner rings the head contractor’s project manager, who confirms the claim is approved for the next run. The subcontractor takes a $60,000 short-term unsecured loan to cover two pay runs and the BAS, based on 3 years of steady bank statements. When the claim is paid, the loan is cleared. The owner then sets up a line of credit so the next slipped payment run doesn’t become an emergency.
When should I worry the customer won’t pay at all?
Watch for warning signs: promises broken more than once, a sudden change in who you’re talking to, other suppliers reporting late payments, rumours in the industry. If you see them:
- Stop supplying on credit until the account is current.
- Check your contract for retention of title clauses and any security you hold.
- Get advice on recovery options and, for construction, your state’s security of payment rules.
- Plan your funding so its repayment doesn’t depend on that customer paying.
If the customer has already collapsed, read losing a major contract or customer.
How do I make late payments less painful next time?
- Agree terms in writing before the work starts and invoice promptly.
- Confirm invoices are approved a few days before they’re due.
- Ask for deposits or progress payments on large jobs.
- Spread your customer base so no single client can sink your month.
- Keep a standing facility for timing gaps rather than scrambling each time.
If staff pay is directly at risk, the payroll due tomorrow page has the urgent steps.
Keep trading while you chase
You shouldn’t have to fall behind on wages or tax because someone else is late. Start a 60-second enquiry and tell us what the unpaid invoice was meant to cover.
There’s no credit check when you first enquire, and we won’t scatter your enquiry across a crowd of lenders — one specialist picks it up and calls you. Please be accurate about the invoice, the customer and when you realistically expect payment; it shapes the right bridge. See if you qualify.
Frequently asked questions
How long should I wait before chasing an overdue invoice?
Don't wait. Confirm the invoice was received and approved a few days before it's due, and call on the first day it's overdue. Early, polite follow-up is normal practice and gets results.
Should I borrow the whole invoice amount?
Usually not. Borrow what you need to cover the costs that can't wait — wages, tax, critical suppliers — plus a small buffer. When the customer pays, repay the loan.
What if the customer disputes the invoice?
Find out exactly what's disputed and resolve the undisputed part first. If you're a small business and can't resolve it, the Australian Small Business and Family Enterprise Ombudsman offers dispute support.
What if my customer is going broke?
Act quickly. Check your contract for retention of title or security, stop supplying on credit, and get advice. If an administrator or liquidator is appointed, lodge a proof of debt.