Customer not paying their invoice? Here’s what you should do

When a customer is not paying their invoice, it can seriously affect your cash flow and day-to-day operations. Whether you manage a large firm or operate as a self-employed professional, unpaid bills pose serious risks.

This article will guide you through what to do if a customer is not paying their invoice, how to follow up professionally, and how Payt can help you automate the process.

Table of contents:

1. Why a customer may not pay the invoice
2. Step‑by‑step plan: what to do if a customer does not pay
3. What to do if you’re self‑employed and a customer isn’t paying
4. How Payt supports when customers aren’t paying on time
5. Frequently asked questions about a customer not paying invoice

Why a customer may not pay the invoice

Addressing a situation where a customer not paying their bill can be confusing—but there are several typical reasons:

• The invoice wasn’t received or got lost
• The customer was unhappy with the service or product
• The customer is experiencing financial trouble
• There’s confusion about the invoice amount or due date

Regardless of the cause, maintaining a professional and systematic approach increases your chances of recovering the payment.

Step‑by‑step plan: What to do if a customer does not pay

If you’re in a situation where a customer hasn’t paid for your service, follow these five steps:

1. Send a polite reminder
Draft a courteous email or letter highlighting the outstanding invoice number, due date, and balance.

2. Call the customer
If there’s no reply, follow up by phone to confirm receipt and find out when payment is likely.

3. Issue a formal notice
If the invoice remains unpaid, send an official payment demand and outline that interest or collection costs may apply.

4. Propose a payment plan
Offer a structured repayment plan in writing if the customer is temporarily unable to pay.

5. Engage collection or legal help
If none of the above works, consider hiring a collection agency or solicitor — but note this involves additional time and cost.

What to do if you’re self‑employed and a customer isn’t their paying

When you’re self‑employed, a customer not paying an invoice can directly affect your livelihood. It’s essential to remain professional and follow the same steps. You could also:

• Consult an accountant or financial adviser to help with reminders or negotiations
• Use a collection agency for professional follow‑up
• Seek legal advice if you suspect a dispute
• Switch to credit management software like Payt for seamless automation

With the right support, you’re never alone—and your chances of being paid improve dramatically.

How Payt supports when customers aren’t paying on time

Payt automates your entire accounts‑receivable cycle—from reminders to collection partners. With intelligent follow‑up and insight into payment habits, Payt helps get invoices settled 30–50% faster.

With Payt, you can:

• Save up to 80% of your time
• Boost customer satisfaction with clear, courteous communication
• Retain full control over your credit‑management process

Interested in finding out what Payt can do for your business? Download our brochure or book a free demo today.

Frequently asked questions about a customer not paying invoice