Quick answer
When a big customer payment is delayed, confirm the new payment date in writing, work out which of your own bills fall before it, and call those creditors early. If a gap remains, a short-term cash loan or cash line can cover it, with same-day funding possible for smaller unsecured amounts. Keep chasing the debt in parallel using reminders and, if needed, a letter of demand.
Key points
- Get the customer's new payment date in writing.
- List only the bills that fall before that date.
- Call your own creditors before they call you.
- Bridge the remainder and keep chasing the debt at the same time.
- First move
- Confirm the new pay date
- Bridge
- Short-term loan or cash line
- Speed
- Same day possible for smaller sums
- Credit check
- None to enquire
It’s usually one customer. The big one. Their payment was due last Friday, the account manager is “chasing it internally”, and your own bills don’t care. Wages are on Thursday. A supplier has already sent a polite reminder.
Here’s a practical, week-by-week way through it.
Day one: what’s actually happening with the payment?
Before you plan anything, find out the truth:
- Who approves payment? Your contact may not be the person who presses the button.
- When is their next payment run? Many larger businesses pay weekly or fortnightly on set days.
- Is anything wrong with your invoice? Missing purchase order numbers, the wrong entity name or an invoice sent to the wrong inbox cause a surprising number of delays.
- Can they confirm the date in writing? An email saying “paying on the 14th” is something you can plan around, and something a lender can see.
Day one, part two: which of your bills fall before that date?
Now list your own outgoings between today and the confirmed payment date, plus a week’s buffer in case it slips again.
| Bill | Amount | Due | Can it move? |
|---|---|---|---|
| Wages | Fixed | Thursday | No |
| Payday Super (from 1 July 2026) | Fixed | Within 7 business days of payday | No |
| Rent | Fixed | 1st | Maybe, if you call |
| Main supplier | Varies | 14-day terms | Maybe |
| Quarterly BAS | Fixed | e.g. 28 October | Payment plan possible |
Anything in the “No” column has to be covered. Anything in the “Maybe” column is worth a phone call. Our cash gap calculator turns this list into a running balance and shows exactly how short you’ll be and for how long.
This week: call your creditors first
Suppliers and landlords hate surprises more than they hate delays. A call before the due date (“our biggest client is paying late, here’s the confirmed date, can we pay you on the 16th?”) often works. Wages and super can’t wait, which is why they usually decide the size of the gap.
Wages due before the customer pays? Start a 60-second enquiry and we’ll look at covering the gap.
Bridging the gap that’s left
If there’s still a shortfall, choose a bridge that matches its shape:
- Short-term cash loan. Best for a single, defined gap. Same-day funding is possible for smaller unsecured amounts. See quick business cash.
- Business cash line. Best if this customer is regularly late. Draw when they’re slow, repay when they pay.
- Property-backed cash. Best for larger gaps where you own property.
Keep the bridge close to the real shortfall. If the customer pays early, you want to be able to clear it without fuss, so ask about early repayment.
Keep chasing, firmly and fairly
While the bridge buys you time, keep the pressure on. business.gov.au suggests a sequence that works: review your contract, send reminders, then a letter of demand, then seek dispute resolution help or take further action. The Australian Small Business and Family Enterprise Ombudsman offers a tool to find low-cost dispute support.
For the long term, our guide to getting invoices paid faster covers terms, deposits and reminders that stop this happening again.
Scripts that get a firm date
Vague answers (“it’s in the system”) don’t help you plan. These questions tend to get a concrete date:
- “Can you confirm the invoice has been approved for payment, and which payment run it’s in?”
- “Is anything missing from our invoice that’s holding it up, like a PO number or a different entity name?”
- “If it’s not in this week’s run, can you tell me the date of the next one?”
- “Could you email me that date so I can plan our wages around it?”
Keep the tone friendly and specific. You’re not accusing anyone; you’re helping them help you.
When a late payment becomes a bad debt
If the customer stops answering, or you hear they’re in financial trouble, treat it differently. Don’t borrow against money that may never arrive. Talk to your accountant about the tax treatment of bad debts, and get advice on recovery options before spending more chasing it.
An illustrative example
Illustrative only. A Gold Coast events company is owed $64k by a corporate client whose payment is three weeks late. The client confirms by email that it will pay in 12 days. Before then, the business has $31k of wages and super and a $9k supplier bill. The supplier agrees to a one-week extension; a short-term unsecured loan covers the wages, and is repaid the day the client pays.
Don’t let one customer sink your week
A late payment is frustrating, but it’s fixable when you move early. Tell us how much is owed, when it’s now expected and what you need to cover. It takes about a minute and asking won’t touch your credit file. Your details stay with one team, not a crowd of lenders, and a real person calls you to work through it.
Please be accurate about the amount and the dates. The clearer the timeline, the quicker we can move.
Frequently asked questions
How do I chase a late payment without losing the customer?
Be friendly but specific. Ask who approves payments, when the next payment run is and whether anything is holding up your invoice. Often a missing purchase order number or wrong email address is the cause.
Can I charge interest on a late invoice?
Only if your contract or terms allow it. Check your agreement first. If it's not in there, consider adding it to future terms.
Should I stop work for a customer who hasn't paid?
It depends on your contract and the relationship. Pausing new work until an overdue account is cleared is common, but read your agreement and consider getting advice before stopping mid-job.
Can I borrow against one late invoice?
You can borrow to cover the gap it creates. A short-term cash loan or cash line sized on your turnover doesn't need to involve the customer at all.