What you'll do
- Move through the recovery stages in the right order
- Keep records that support each step
- Know when a friendly reminder should become a formal demand
- Decide the point to escalate to professional recovery
- Recover without burning the customer relationship unnecessarily
8 min
Start gently, escalate steadily
Most unpaid invoices are simply overlooked. A polite reminder soon after the due date resolves many of them. If that does not work, you step up in stages: a firmer reminder, a phone call, a formal letter of demand, and finally professional recovery. Escalating steadily and on record keeps you in a strong position.
The recovery sequence
- Send a polite reminder a few days after the due date.
- Follow up with a firmer reminder and a copy of the invoice.
- Call the debtor to confirm they have it and ask when they will pay.
- Send a formal letter of demand with a clear deadline.
- If the deadline passes, refer the debt for professional recovery.
- Keep dated records of every contact along the way.
Each step both prompts payment and builds the trail you may need later.
When to hand it over
If reminders and a letter of demand have not worked, escalating to Merion costs nothing upfront under no recovery, no fee. Refer at merion.com.au/refer-a-debt, or get a free debt appraisal first if you want a read on your prospects. Use the Merion tools to confirm the exact balance before you refer.
Good to know
- Start with a polite reminder and escalate in steady, recorded stages
- A letter of demand is the usual last step before referral
- Escalating to professional recovery costs nothing upfront
FAQ
How soon after the due date should I chase?
A polite reminder a few days after the due date is sensible. Many overdue invoices are simply overlooked.
When should I escalate to professional recovery?
Generally once reminders and a formal letter of demand have not produced payment by the deadline you set.
Will chasing the debt damage the relationship?
Escalating steadily and professionally keeps it constructive. Most customers respond to clear, courteous reminders.
Still not sure? Our team is happy to talk it through.