Unpaid debts can be one of the biggest challenges of running a business.
When you have unpaid invoices that customers have not paid on time, it can squeeze cash flow, increase financial pressures, and even damage otherwise good relationships.
If you are chasing unpaid invoices from last year, here are some tips to help you recover what you are owed.
Recommended first steps
We recommend you try a few things before you consider taking legal action. Remind your debtor of your Terms and Conditions. Ideally, you had input from a lawyer to develop them and provided them to your debtor before you started any work (this will strengthen your recovery chances).
Confirm the right person has received the invoice and reminders. Email addresses change, staff move on, and invoices can sometimes get stuck in approval workflows, particularly if your payment terms differ from the debtor’s standard practices.
If there is genuine hardship and you would like to preserve the relationship, you might consider offering a payment plan as a practical middle ground. With realistic timeframes and clear terms, it can be possible to recover what you are owed over a longer timeframe.
It is also worth checking whether a bigger issue is in play. If the debtor is in liquidation, administration or bankruptcy, your recovery options may be affected and timing can be critical.
When you might escalate
If you have tried these steps and the debt is still unpaid, the next step is usually to formalise your position. A written demand can set out what is owed and a clear due date, and we find it is usually more persuasive when we issue this on behalf of our clients.
If the unpaid invoice remains outstanding or communication has broken down, legal advice can help you understand your legal pathways. Your particular circumstances will determine what is available to you in South Australia, including whether the debt is disputed, the amount involved, and whether the debtor is an individual or a company.
It is important to note that escalation does not always mean going straight to court. Often, a final notice with a clear deadline is enough to prompt action. If not, court may be needed to obtain a judgment and pursue enforcement.
In some cases though, our client’s only real recourse is to ask us to initiate insolvency action on their behalf, including bankruptcy for individuals and winding up for companies.
If you have outstanding debtors and would like to understand your options, our dedicated debt recovery team at SA Debt Recovery Legal can help. Located in Christie’s Beach, we offer a free 15-minute consultation if you haven’t contacted us before.
This information was originally published in the January 2026 edition of the Fleurieu Sun.
Information is general in nature and does not constitute legal advice.