Guide
How to Collect Unpaid Invoices: A 30/60/90-Day Escalation Plan
Updated October 15, 2026 · CollectionPlacement editorial team
Short answer: Collect unpaid invoices with a consistent escalation plan: friendly reminders around the due date, calls and statements at 30 days, a firm final notice around 45–60 days, a formal demand letter, then placement with a collection agency or attorney at roughly 60–90 days, sooner if the customer goes silent. Document everything and act promptly, because recovery generally gets harder as debt ages.
Before the invoice is late
- Clear payment terms on a signed credit application or contract, including any late fees, interest and collection-cost clauses
- Accurate, prompt invoices with PO numbers and the right AP contact
- Easy payment options
- A reminder a few days before the due date
Days 1–30: reminders and a call
Send a polite reminder with the invoice attached, then call. Confirm there's no dispute or paperwork problem, and ask for a specific payment date.
Days 30–60: escalate internally
Send statements, call the decision-maker rather than just AP, consider putting further orders on hold, and offer a short payment plan if that's realistic. Get any promise in writing.
Days 45–60: final notice
Send a final notice letter with a firm deadline and the specific next step. If your terms allow it, calculate charges with our late fee calculator.
Days 60–90: demand letter and placement
Send a formal demand letter, then place the account with a collection agency, or for larger or disputed balances, a collection attorney. Small claims court can work for smaller amounts within your state's limit.
Keep a paper trail
Save contracts, invoices, proof of delivery, emails and call notes. Good documentation helps any agency, attorney or court. See what to prepare before placing an account.
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Not legal advice. This article is general information, not legal advice, and laws vary by state and change over time. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a licensed attorney about your situation.
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- How Much Do Collection Agencies Charge? Contingency Rates Explained
- When Should You Send an Unpaid Invoice to Collections?
- Collection Agency vs. Collection Attorney: Which Should You Use?
- How to Place Commercial Debt with a Collection Agency (Step by Step)
- What to Prepare Before Placing an Account for Collection: A Checklist
- Medical Debt Placement: A Guide for Practices and Healthcare Providers
Frequently asked questions
How long should I wait before sending an invoice to collections?
Many businesses place at 60 to 90 days past due, or sooner if the customer stops responding. Waiting too long tends to lower recovery.
Can I take an unpaid invoice to small claims court?
Often yes, if the amount is within your state's small claims limit. Limits and procedures vary by state, and you may still need to enforce the judgment.
Can I charge interest on an unpaid invoice?
Usually only if your terms or contract allow it and within legal limits. Some states also let courts award statutory interest.
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