Invoices are generally considered "too long" overdue if not paid within 30 days (Net 30), which is the standard industry norm. While terms like 60 or 90 days exist for large corporations, payment, in most cases, is expected upon receipt or within 14–30 days. Any payment delayed beyond 30-45 days, especially without communication, is often considered unreasonably long.
Invoices must always include the invoice date as well as the due date. Setting a due date encourages the client to pay you within a certain time frame. 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.
Many businesses extend net 30 terms with their invoices, which means you have 30 days to make the payment. Some even give net 60, 90, or even higher terms. This helps with your cash flow and gives you an opportunity to assess the product or service you have purchased before you pay for it.
It is, in effect a statute of limitations that applies to the payment of invoices and how long a creditor can chase a debtor for non-payment of an invoice. It might surprise many companies that unpaid invoices, under a simple contract, can be legitimately chased for up to 6 years.
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.
In general, clients cannot refuse to pay late invoices if they have received goods or services as agreed upon in the contract or agreement. Late invoicing doesn't absolve them of their payment obligation.
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.
The time limit is sometimes called the limitation period. For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts.
Filing a Lawsuit for Breach of Contract
If your client agreed to pay for goods or services and failed to follow through, they may be in breach of contract. You have the right to sue for the amount owed, and possibly additional damages, depending on your contract and the impact of the missed payment.
If you have an unpaid invoice, here are some steps you can take to try and resolve the situation:
On the other hand, there's usually no legal requirement that bills be sent out in a timely fashion—so businesses can absolutely bill your months or even years after the fact. If it's a medical debt, there's the added confusion of insurance coverage and the challenge of understanding the bill in the first place.
Some clients genuinely believe they'll have the money “next week.” Others are juggling multiple bills and hoping things magically align. Either way, they're postponing payment, not maliciously, but optimistically (and sometimes irresponsibly).
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.
Under “30 days payment terms,” the buyer must pay the seller within 30 days after the invoice date. Depending on the agreement, these terms might also be phrased as “net 30” or include variations such as “30 days from receipt of goods” and “30 days after the end of the month.”
Tips for collecting outstanding and unpaid invoices
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.
The "777 rule" in debt collection, also known as the 7-in-7 rule, is a CFPB regulation (Regulation F) limiting calls: collectors can't call more than 7 times in 7 days for a specific debt, nor call within 7 days of a conversation about that debt. It aims to prevent harassment, applying to calls, texts, and emails, though exceptions exist, and the presumption of compliance can be rebutted by aggressive call patterns like rapid succession or highly concentrated calls.
Federal law says that invoices remain outstanding for up to 6 years; i.e., you can pursue a client for an unpaid invoice even if that invoice is 6 years old. Past that point, you'll probably need to seek legal action if you want to receive your payment.
Craft a polite email or phone call reminding your client about the outstanding invoice. Be sure to include clear details like the invoice number. Make it easy for them to settle the bill by mentioning your available payment methods, such as online portals, mail-in checks, or credit card payments via a phone call.
The 11-word phrase often cited to stop debt collectors is "Please cease and desist all calls and contact with me, immediately," which leverages your rights under the Fair Debt Collection Practices Act (FDCPA) to halt most communication, though it must be sent in writing via certified mail to be legally binding, and collectors can still notify you of lawsuits.
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.
No, debt doesn't truly "reset" after 7 years, but most negative information about it gets removed from your credit report, while the debt itself remains, though its ability to be legally sued over often expires based on your state's statute of limitations (typically 3-6 years, but can vary). The 7-year mark (from the first missed payment date) removes the item from credit reports under the Fair Credit Reporting Act (FCRA). Making payments or acknowledging the debt can sometimes restart the statute of limitations clock, allowing debt collectors to potentially sue for longer, though new laws in some places try to prevent this "zombie debt" effect.
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.
We hear this question all the time, and we get it. Your time is valuable, but here's the truth: ✔️The law generally doesn't compensate you just because someone caused you stress or wasted your time.
How to Catch Up on Bills When You Fall Behind