Payment Follow-Up Decision Tree
Know exactly what to do when an invoice goes unpaid. Follow the branches below based on how many days overdue and the client’s response to decide your next move.
Start
Invoice is Overdue
How many days overdue?
First offense or repeat?
Send friendly email reminder
"Hi [name], just a gentle reminder that invoice [#] was due on [date]. Can you confirm payment is on the way?"
Send firm reminder + mention late fees
Reference your late payment policy and note this is not the first time. Keep it professional but direct.
Has client responded to previous reminders?
Send follow-up asking for specific payment date
"Thanks for your response. Can you commit to a specific payment date this week?"
Phone call
Call the client directly. Be professional. Ask if there is an issue with the invoice.
Is the client communicating?
Offer payment plan
Break the amount into 2-3 installments. Get agreement in writing. Set calendar reminders for each installment.
Send formal late payment notice
Include: amount owed + late fees accrued, deadline for payment (7 days), consequence of non-payment (work pause, collections).
Amount owed?
Final attempt: one last call + written demand
If no response, write it off. The cost of collection likely exceeds the value at this amount.
Send formal demand letter
Certified mail or email with read receipt. State amount including fees, give 14-day deadline, reference contract terms, mention next step is collections / legal.
Evaluate your options
Collections agency
For amounts over $1,000 where you have documentation of the debt and previous attempts to collect.
Small claims court
For amounts within your jurisdiction's limit (usually $5,000 — $10,000). You represent yourself; no lawyer needed.
Write-off
When the cost of pursuit exceeds likely recovery. Document for taxes and move on.
Quick Reference
| Days Overdue | Action | Tone | Method |
|---|---|---|---|
| 1 — 7 | Friendly reminder | Warm | |
| 8 — 14 | Follow-up / Phone call | Professional | Email + Phone |
| 15 — 30 | Formal notice or payment plan | Firm | Email (formal) |
| 31 — 60 | Demand letter | Serious | Certified mail |
| 60+ | Collections / Legal / Write-off | Final | Third party |
Following up manually at every stage?
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