What should I do if a client hasn't paid?

First, check the invoice was received and there are no disputes. Then send a polite payment reminder. If no response, call them. For ongoing non-payment, consider a formal demand letter or debt collection.

Can I charge interest on late payments?

Yes. In New Zealand and Australia, you can charge late payment interest if it's specified in your terms and conditions. Make sure your terms are clear and the client agreed to them.

When should I write off a bad debt?

If a client is genuinely unable to pay and all reasonable attempts have been made, you may need to write off the debt. In NZ, you can claim a GST bad debt adjustment. In AU, similar provisions apply.

Dealing with late payments

TL;DR: Resources for AU and NZ small businesses on managing and preventing late payments. Strategies, templates, legal considerations, and where invoice finance solves the cashflow gap without chasing customers.

Late payments are frustrating — but they’re also common. Here’s a practical, step-by-step approach to handling them without damaging client relationships.

Step 1: Don’t assume the worst

Most late payments are the result of oversight, not deliberate non-payment. Before escalating, check: Did the client receive the invoice? Is there a dispute about the work? Is there an administrative delay (e.g. invoice needs to go through an approval process)?

Step 2: Send a polite reminder

A friendly email or phone call the day after payment was due resolves most overdue invoices. Keep the tone professional — assume the delay is administrative, not malicious.

Step 3: Escalate progressively

Day 1 overdue: Polite email reminder
Day 7 overdue: Phone call
Day 14 overdue: Formal overdue notice in writing
Day 30 overdue: Formal demand letter (consider legal advice)
Day 45+ overdue: Debt collection or legal action if warranted

Protect yourself while you wait

While Fundtap won't specifically provide funds for an already overdue invoice, we can fund any other issued but not yet due ones, giving you breathing space while you pursue the late payment at your own pace.

Check eligibility — it takes minutes

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