Yes, in many jurisdictions, you are likely still legally required to pay a 3-year-old invoice. Most, including the UK and many US states, have a limitation period of 6 years (or 4 years for some US contracts) for debt collection, meaning the debt is not yet statute-barred and legal action can still be taken.
Technically, there's a time limit on how late you can write an invoice for a customer. But the grace period for collecting outstanding debt is usually very long. In some jurisdictions, you may be able to bill clients even after several years.
Unless your contract with them states otherwise they are perfectly within their rights to invoice after three years and they are under no obligation to allow you to pay in instalments.
Well in short the answer is yes, unless more than six years have passed. The only regulation placing a time limit on collecting a genuine debt is the Limitation Act 1980.
The general rule is 30 days from the invoice date. However, you can discuss this with your customer and either make it shorter or longer than 30 days. Regardless of what you agree upon, the payment terms and the due date should be clearly stated on the invoice.
How long does an unpaid invoice remain valid for collection? Under the Limitation Act 1980, invoices remain valid for up to six years from the date the customer last acknowledged the debt or made a partial payment.
According to California Code of Civil Procedure § 337(1), the statute of limitations for a written contract is four years. Under § 339(1), the limit for an oral contract is two years.
If no specific payment deadline has been communicated or agreed upon, most customers are generally expected to pay within 30 days of receiving the invoice or the goods or services provided. This 30-day standard is a common default in many business transactions, but it is not legally fixed.
Maybe you've just discovered an old invoice that slipped through the cracks, or maybe you've been chasing down a customer who seems to have completely disappeared. Either way, you're probably wondering, how long can I keep chasing after this money? The short answer is for most debts, that limit is 6 years.
It might surprise many companies that unpaid invoices, under a simple contract, can be legitimately chased for up to 6 years. Legal proceedings would need to be issued within 6 years of the date of the invoice to prevent any claim from being statute barred.
Backdating invoices isn't inherently illegal—but misusing it to manipulate revenue or tax periods risks serious penalties.
This limitation period starts the day after the due date mentioned on the invoice. As a general rule, this deadline is set at 30, 45 or 60 days after the issue of the invoice according to the legislation in force, depending on the creditor's sector of activity.
Written Contracts: For debts involving written contracts, such as commercial agreements, promissory notes, or client service contracts, the statute of limitations extends to four years from the date of the breach.
In California, for instance, providers have one year from the date of service to submit claims, which allows for some variation in billing precision and adjustments.
If no agreed-upon payment date has been established, a customer must pay a company within 30 days of receiving an invoice or the goods or service.
Debts more than 12-months old
If you have an old or outstanding bill then you are obliged to pay this. The only circumstances in which a bill can be written off is if the old debt is more than 12-months old and the supplier was at fault in the way the bill was calculated.
The general rule is that if it becomes necessary to issue legal proceedings to recover an unpaid invoice, then the creditor must do so within the statutory time limit of six years from when the clock starts to tick.
False invoicing may also be considered invoice fraud. This occurs when a business sends an invoice to a customer to pay for goods or services that the business is aware that the customer did not purchase.
Business clients (B2B)
For business transactions, the usual term is 30 days. A longer period (up to 60 days) is possible if both parties agree in writing. However, many freelancers choose shorter freelance invoice payment terms, such as 14 or 30 days, to protect their cash flow.
Know your legal rights for missed or late payments
While you can agree longer periods if you wish, and the other party agrees, by default, the payment is late 30 days after either the invoice is received by the client or customer, or the goods and services have been delivered (if later than the invoice date).
The standard invoice timeline usually spans 30 days, often referred to as Net 30 terms, but the specific duration can vary based on industry standards, client payment processes, and specific invoice terms.
If you have an unpaid invoice, here are some steps you can take to try and resolve the situation:
How to Catch Up on Bills When You Fall Behind
Standard terms often include: Immediate payment : used for real-time transactions (internet, shop, often for physical goods) 30 days end of month : allows the client to pay the invoice within 30 days of the end of the billing month (most common in B2B and service sales: suitable for recruitment)
Customers should ideally raise their dispute as soon as possible. It's common practice for this to happen within 30 days of receipt, although there's no legally defined time limit. This should be done in writing by a formal letter of dispute, although it's also common for this to be sent as an email.