Before you borrow, collect the debtor book

Cash already earned is not cash collected

A debtor book can look like strength and still leave the bank account bare. You may have the work invoiced, the margin booked and the cash missing. Before you ask for more borrowing, treat overdue receivables as the first source of working capital. Business.gov.au says late payments can strain cash flow and should be followed up. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

That matters because a large debtor book can hide the real pressure. Sales figures may look fine while payroll, subcontractors and tax are waiting for money that has not arrived. The practical test is simple: if receipts are slow, a loan may only widen the gap instead of fixing it. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Age the book by risk

Start with an ageing list, not a gut feel. Put each debtor into 0 to 30, 31 to 60, 61 to 90 and over 90 day bands, then add invoice value, site, contact and last promise made. Business.gov.au recommends clear records and keeping track of overdue payments before they drift further. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

Sort by risk, not by habit. A small invoice in the 90 day column can be more urgent than a bigger one that is only a week late. Once the list is visible, you can see which accounts are quietly turning from admin work into collection work this month for you. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

Source: Official guidance

Make the 30 day calls

This week, call every debtor over 30 days old. Keep the call short and specific: confirm the amount, ask why it is still unpaid and get a payment date or part payment. Business.gov.au suggests a polite reminder first, which often resolves an overdue account without hurting the relationship too much. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

If the debtor offers a new promise, write it down the same day and note who agreed, what was said and when the money is meant to arrive. If the story changes from one call to the next, that tells you something useful: you are not chasing reassurance, you are testing the plan. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

Escalate the old files

By 60 days, move from reminders to escalation. That may mean a firmer written demand, a final notice or a debt collection service if earlier steps have failed. Business.gov.au says a letter of demand states the amount owed, what it is for and when payment is due clearly on paper. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

At 90 days, decide whether the file stays in house or goes out. Do not keep extending credit just because the debtor is familiar. If the debt is worth chasing, prepare the records, keep the correspondence and hand over the file before the account becomes a habit for your business. ([business.gov.au](https://business.gov.au/people/disputes/debt-collection-services?utm_source=openai))

Borrow after the chase, not before

Only borrow after you have counted what can still be collected this month. Compare the cost of finance with the money already sitting in unpaid invoices, because a faster recovery push may be cheaper than new debt. Business.gov.au says funding choices have costs and risks, so compare what is available and choose what suits the business. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Today, print the ageing list, call the over 30 day accounts, mark the over 60 day matters for escalation and prepare the over 90 day files for handover. If the book is still too heavy, CRP can coordinate independent qualified professionals to review your recovery options. This is general information only, not legal or financial advice. Call CRP today about debt recovery. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))