Definition
A past due invoice is an invoice that has not been paid by its due date. Once an invoice is past due, the seller typically sends reminders, may apply any late fee stated in the terms, and eventually escalates to formal collection if the balance remains unpaid.
Also called: Overdue invoice, Late invoice
Past due invoice in practice
Most late payments are oversights rather than refusals, so a prompt, polite reminder resolves the majority. Tracking invoices by status (sent, due, overdue) makes it easy to see what needs follow-up.
Late fees and interest can only be charged if they were agreed before the work began, usually in the contract or on the original invoice.
Frequently Asked Questions
When does an invoice become past due?
The day after the due date. For Net 30 terms on an invoice dated March 1, the invoice is past due on April 1.
How long before a past due invoice goes to collections?
There is no fixed rule. Many small businesses escalate after 60 to 90 days and at least two or three documented reminders. Check your contract terms and local regulations first.