How to Chase Unpaid Invoices Without Damaging Client Relationships (NZ Guide)
Chasing unpaid invoices is one of those parts of business no one enjoys.
You’ve done the work. Delivered the service. Now you’re stuck following someone up for money you’ve already earned.
I speak to business owners about this all the time and it’s often where cash flow pressure starts.
The challenge is: you need to get paid but you don’t want to damage the relationship
Here are some practical ways to handle it properly:
1. Have a Clear Process (Most Don’t)
A lot of businesses handle this reactively. Invoice goes overdue then it’s:
“Should I email? Call? Wait a bit longer?”
That delay is where problems start. Instead, have a simple structure:
invoice sent with clear terms
reminder before due date
follow-up immediately after overdue
The longer an invoice sits unpaid, the harder it is to collect.
2. Follow Up Early (and Stay Professional)
One of the biggest mistakes I see is waiting too long.
People don’t want to feel awkward chasing money.
But in reality: most overdue invoices aren’t intentional, they’re just not a priority for the client
A quick, professional follow-up early makes a huge difference.
3. Separate Relationships From Payments
This is where it gets tricky. You want to keep a good relationship but also get paid.
One simple approach, keep communication professional and consistent
Some businesses even:
use a separate email for accounts
or separate the “friendly contact” from the “payment follow-up”
It removes the emotion from it.
4. Be Flexible (When It Makes Sense)
Sometimes the client genuinely can’t pay right now.
In those cases:
a payment plan
or staged payments
can be better than chasing endlessly. You still get paid just in a way that keeps the relationship intact.
5. Know When to Draw the Line
This is important. If someone consistently:
doesn’t pay
delays
avoids communication
You need a plan. That might mean pausing work, offering a settlement or escalating further
Because continuing to provide services without payment puts your business under pressure and isn’t worth the relationship.
6. When It Gets Serious
At some point, you may need to involve a debt collector or take legal steps
But this should always be the last resort
It’s costly, time-consuming, and usually ends the relationship. There are companies like Baycorp which charge a commission on the paid invoice or Icollect which charge a small transaction fee to help collect.
If You Want to Talk It Through
Most of my customers are dealing with the same issues. Waiting 30, 60 or 90 days for payment and outside your standard collection strategies we just spoke about there are finance options like Overdrafts with your bank or Invoice Finance which I specialise in to help with cashflow strains.
If you want a quick idea of what this could look like for your business, I’m happy to run through it with you.
Or learn more: