Understanding the situation
An unpaid invoice can arise for many reasons: a genuine cash-flow problem for the customer, a dispute over the quality or scope of goods or services, an administrative oversight, or a deliberate refusal to pay. How the matter is approached often depends on which of these applies.
Before deciding on next steps, it is generally useful to check the underlying contract or terms of business for any provisions on payment, disputes or notices, since these can shape the appropriate procedure.
Section pending verification
Possible options
Which combination of these makes sense depends on the size of the debt, whether the customer disputes the invoice, and the ongoing commercial relationship, if any.
- Direct follow-up with the customer's finance or procurement contact to understand the reason for non-payment.
- A formal written demand or legal notice setting out the amount claimed and requesting payment.
- A negotiated payment plan, ideally documented in writing.
- A court-based process to seek an enforceable decision, subject to the applicable procedure and evidence available.
Section pending verification
Practical steps
- 1Gather the contract or purchase order, the invoice, and proof of delivery or completed work.
- 2Check the invoice and underlying documents for accuracy, including agreed amounts and any disputed items.
- 3Send a clear, dated written reminder if you have not already done so.
- 4Record every communication and response from the customer.
- 5Consider a formal legal notice if informal reminders do not lead to payment.
- 6Take advice on the appropriate procedure before pursuing a court-based route.
