Non-payment is stressful, but it rewards a cool head and a clear process far more than an angry phone call. Most overdue invoices are resolved in the first two steps; escalation exists for the minority that aren’t. This guide sets out the sequence — reminder, direct contact, formal demand, statutory and legal options — and, just as importantly, how to stop being in this position in the first place. It is general information, not legal advice.
Step 1 — Prompt, friendly reminder
The day an invoice goes overdue, send a short, polite reminder with the invoice attached and easy ways to pay. A surprising share of late payments are simple oversights — the invoice got buried, not refused. A same-day nudge, sent without hostility, clears most of them and keeps the relationship intact.
Step 2 — Direct contact and a clear deadline
If the reminder goes unanswered, call or meet. Ask directly whether there’s a problem — with the work, or with their ability to pay — and agree a firm date. Confirm whatever you agree in writing afterward. A calm, direct conversation surfaces genuine disputes early (which you can often resolve) and signals to a staller that you’re paying attention.
Step 3 — A formal letter of demand
Still nothing? A written letter of demand sets out what’s owed, for what work, the original due date, and a final deadline to pay before you take further action. It’s firm but not aggressive, and it often works precisely because it shows you’re prepared to escalate. Keep it factual and keep a copy.
Step 4 — Statutory and legal options
For construction work, Australia’s Security of Payment regime gives you a fast, statutory path to pursue a progress payment — a payment claim, and adjudication if it’s short-paid or ignored. It’s powerful but procedural and time-limited, so understand the requirements before you rely on it. Beyond that sit small-claims tribunals and debt-recovery options. These routes recover money you’re already owed; they take time, and if the client is insolvent, even a win can be worth little.
The real fix: make it impossible to argue
Every step above is a remedy after the fact — you’re chasing money that’s already at risk, and how well it goes depends almost entirely on what you can prove. The clients who successfully stall are the ones who can say "I never agreed to that" or "that stage isn’t finished" and leave you with nothing dated to put against it. So the real fix is upstream: a written quote they accepted, the job split into stages with a price and a definition of done against each, the client signing each stage off as it completes, and photos and diary entries recorded on the day rather than dug out months later.
That is the record Stagex keeps, and it’s the same material a tribunal or adjudicator would ask for. It doesn’t make anyone pay — Stagex does not hold, collect or release your client’s money and is not licensed to, and your client pays you directly. What it does is take away the ambiguity most non-payment hides behind, and leave you evidenced if you do have to escalate. Your statutory and legal rights are unaffected either way.