If this is eating your week, you’re in large company. In Intuit’s Small Business Late Payments Report 2026, 59% of owners surveyed had invoices more than 30 days overdue, and 12% said a missed payment of under $1,000 was enough to strain their finances. A Bluevine survey from February 2026 found 28% of owners had more than $5,000 tied up in unpaid invoices.
Step 1: make sure it’s really unpaid
Before you write anything, spend five minutes checking your own side. Surprisingly often, the money is already there.
- Search your bank deposits for the amount, and for the customer’s name.
- Check for payments recorded but not applied to the invoice, and for unapplied credits.
- Look for a partial payment that covered some of it.
- Confirm the invoice went to a current address. Search your sent mail.
If it was paid and not recorded, you’ve saved yourself an awkward email. If it went to the wrong person, you’ve found the problem.
Step 2: ask, specifically
The first message should assume the best and ask a question that’s easy to answer. Include the invoice number, the amount, the due date and a way to pay. Ask when it’s scheduled, or whether anything is missing.
“Hi Dana, invoice 1052 for $4,410.00 was due on October 30 and I don’t see it yet. Is it scheduled, or does it need anything from us, like a PO number? Pay link: [link].”
Then follow up a week later if there’s no answer, this time asking for a specific date. Our payment reminder templates have the full sequence.
Step 3: widen and call
If two emails get no reply, the problem is usually the channel or the person, not the money. Change both.
- Copy accounts payable. Say why: “copying your AP team in case this hasn’t reached them.”
- Call. Ask for whoever approves payments. Be friendly and specific: “I’m calling about invoice 1052, two weeks overdue. Can you tell me where it is?”
- Write down what they say. A promised date, a name, a reason. Then confirm it by email the same day.
Most invoices get paid somewhere in this step. Calls are uncomfortable for a few seconds and get answers that weeks of email don’t.
Step 4: a final written notice
If calls and emails haven’t worked, send one formal notice. It should be calm, specific and in writing, and it should include:
- The invoice number, amount, original due date and what it was for.
- The dates you reminded them and called.
- A firm deadline, usually 7 to 14 days out.
- What you’ll do if it isn’t paid: pause work, refer it for collection, or file a claim. Only say what you’ll actually do.
Send it to the decision maker as well as the usual contacts. A final notice is often the first time the owner of the business hears about the invoice.
Step 5: last resorts
If the deadline passes, you have three options, roughly from cheapest to most expensive in money, and the reverse in time:
| Option | Good for | Watch out for |
|---|---|---|
| Small claims court | Smaller balances, clear paperwork | Each state sets its own limit, fees and rules on who can represent a business. |
| Collection agency | Customers who have gone silent | Contingency fees take a share of what’s recovered; the relationship usually ends. |
| Write it off | Small amounts, or customers you can’t find | Ask your accountant about how to record a bad debt. |
Whichever you choose, the record you kept in steps 1 to 4 is what makes it work: the agreement, the invoice, every reminder and every reply. See collections software vs an agency for more on that decision.
This is general guidance for business-to-business invoices, not legal advice. Rules on late fees, interest, small claims and collection agencies vary by state. Check with a lawyer or your local court before taking legal steps.
Next time
The same Intuit report found businesses on net 30 terms were about twice as likely to have overdue invoices (55%) as businesses that asked for payment immediately (26%). Deposits on large jobs, shorter terms where you can, a pay link on every invoice, and a reminder the day after the due date prevent most of what this guide is about.