How to Check If Your Client Is a Slow Payer (Before You Send the Invoice)
What if you could know whether a new client pays on time before you do the work? It sounds too good to be true, but in Australia, there are free government databases and commercial tools that let you check client payment history before you commit to a project, sign a contract, or send your first invoice.
Late payments are an epidemic among Australian small businesses. According to CreditorWatch, 68% of businesses report that up to 30% of their invoices are paid late — on average, 25 days beyond agreed terms. Large companies with 500 or more employees are often the worst offenders, taking an average of 58 days to pay their suppliers (Dun & Bradstreet via ScotPac). The financial toll is staggering: Australian SMEs collectively carry $76 billion in unpaid invoices.
The good news? A few minutes of research can save you months of chasing. This guide walks you through exactly how to check client payment history in Australia — from free government registers to commercial credit reports — so you can make informed decisions before work begins.
Why Checking Client Payment History Matters
Taking on a new client feels exciting — right up until their invoices start going 30, 60, or 90 days overdue. By then, you have already invested your time, materials, and cash flow into delivering the work.
The numbers paint a grim picture. A GoCardless report found that 63% of Australian SMBs spend time chasing payments, losing an average of 1.5 hours per week — that is 78 hours per year you will never get back. Worse, Airwallex research shows that Australian businesses lose an average of $2,408 per month (roughly $29,000 per year) to late payments, with 84% of SMEs losing up to $4,999 monthly.
The downstream effects go beyond lost revenue. According to CreditorWatch, 60% of respondents have used personal funds for working capital in the past 12 months, and 43% cite personal stress as the top consequence of late payments — a figure that rises to 57% among sole traders. One in three SMEs have dipped into personal savings, and 10% have considered closing permanently.
A client payment risk check upfront is not about being distrustful. It is about protecting your business and making informed decisions. You would not hire a new employee without checking references — the same logic applies to your clients.
The Australian Government's Payment Times Reporting Register
Australia's Payment Times Reporting Register (PTRS) is one of the most valuable — and most underused — tools for checking whether a potential client is a slow payer. Established under the Payment Times Reporting Act 2020, this government register requires large businesses to publicly disclose how quickly they pay their small business suppliers.
What It Is
Over 6,000 large Australian businesses (those with annual revenue of $100 million or more) are required to submit reports detailing their payment practices. This data is published on the register and available to anyone — free of charge. The register is maintained by the Payment Times Reporting Regulator, an independent government body.
How to Use It
Visit register.paymenttimes.gov.au and search by company name or ABN. The register will return the most recent payment times report submitted by that entity.
What You Can Find
Each report includes a wealth of detail about how the business pays its small business suppliers:
Average payment terms: The standard terms the business offers (e.g., 30 days, 45 days, 60 days)
Percentage paid within 30, 60, and 90 days: This is the most telling metric. If a company pays only 40% of invoices within 30 days, you know to expect delays.
Industry comparisons: You can compare a company's payment behaviour against its sector. According to the Payment Times Reporting Regulator, the average time for an SME supplier to get paid by a large business is 35.4 days, but in manufacturing it stretches to 43 days.
Payment method breakdown: How the business pays (EFT, card, cheque, etc.)
Limitations to Keep in Mind
The payment times register Australia offers is powerful, but it is not a complete picture:
Only large businesses: Only entities with $100 million or more in annual revenue are required to report. Your mid-sized client with $10 million in revenue will not appear here.
Data can be delayed: Reports are submitted every six months, so the data may be up to six months old by the time you view it.
Self-reported: While there are penalties for false reporting, the data comes from the businesses themselves.
Does not cover government agencies: Federal and state government departments have separate payment policies (typically 5–20 business days).
Despite these limitations, the PTRS is an excellent starting point. If your prospective client is large enough to appear on the register, you can get a clear, government-verified picture of how they treat their suppliers.
Other Ways to Check Client Payment History in Australia
Not every client will appear on the PTRS. For smaller businesses — or to build a fuller picture — combine the register with these additional checks.
ABN Lookup
The Australian Business Register (ABN Lookup) is free and takes 30 seconds. Search any business by name or ABN to confirm:
Their ABN is active (a cancelled ABN is a major red flag)
Whether they are registered for GST — a business asking you to invoice tens of thousands of dollars but not registered for GST warrants further investigation
How long the business has been registered — business age can be a rough proxy for stability
The entity type (sole trader, company, partnership, trust)
ASIC Company Search
For companies (Pty Ltd entities), the Australian Securities and Investments Commission (ASIC) offers a company search that reveals the company's registration status, registered office address, and current directors. If a company's status shows as "deregistered" or "under external administration," you have your answer — do not extend credit.
Commercial Credit Reports
For a more thorough client payment risk check, paid services like CreditorWatch and Dun & Bradstreet provide commercial credit reports. These reports typically include:
Credit scores and payment risk ratings
Trade payment data (how the business pays other suppliers)
Court actions, defaults, and insolvency notices
Director history and cross-directorships
These reports cost anywhere from $30 to $100+ per search, but on a large contract they can easily pay for themselves. If a credit report reveals a pattern of slow paying clients behaviour, you can adjust your terms — or walk away before you are out of pocket.
Ask Around
Do not underestimate the value of your professional network. Other suppliers in your industry may have dealt with the same client and can share their experience. Industry associations and trade groups are another good source. You can also ask the prospective client directly for trade references — reputable businesses will not hesitate to provide them.
Search Online
A quick Google search for the business name followed by terms like "not paying," "overdue," or "payment problems" can surface forum posts, reviews, and news articles that reveal a pattern. Check platforms like ProductReview.com.au, Whirlpool forums, and industry-specific communities.
Red Flags to Watch For
When you run these checks, certain patterns should raise your guard. No single red flag is definitive, but multiple warning signs together should prompt you to tighten your payment terms or reconsider the engagement entirely.
Very new business registration: A business registered less than 12 months ago has no track record. This does not mean they are untrustworthy, but it does mean you have less data to work with. Consider requesting payment upfront or a larger deposit.
No GST registration on a large contract: If a business is quoting you work worth $75,000 or more but is not registered for GST, something does not add up. Businesses with turnover above $75,000 are required to register.
Requests for unusually long payment terms: If a new client immediately asks for 60- or 90-day terms, treat this as a signal. Standard terms in Australia are 14–30 days. Longer terms often indicate the business is managing its own cash flow problems by stretching yours.
Poor PTRS data: If the business appears on the Payment Times Reporting Register and their data shows fewer than 50% of invoices paid within 30 days, you can expect delays. Plan accordingly.
History of disputes or complaints online: A pattern of complaints about non-payment across multiple forums or platforms is one of the clearest warning signs. One disgruntled supplier could be an outlier — three or four is a pattern.
How Unpaid Makes Checking Easier
Running all these checks manually for every new client is thorough — but time-consuming. That is exactly why Unpaid has built several of these checks directly into its platform, starting with a free tool anyone can use right now.
PTRS Risk Checker — Free and Instant
The PTRS Risk Checker at getunpaid.io/tools/client-risk-checker is the easiest way to start. Enter a company name or ABN and get an instant summary of their payment times data from the government register. No account needed, no cost — just a quick answer on whether that large client is likely to pay on time. It is the fastest client payment risk check available.
Automatic ABN and GST Verification
When you add a client to Unpaid, the platform automatically verifies their ABN status and GST registration against Australian Government data. You will see immediately if an ABN is cancelled, if GST registration is missing, or if anything looks irregular — without having to visit ABN Lookup separately.
Government Client Detection
Unpaid automatically detects when a client is a government entity and flags the applicable payment terms — typically 5 business days for Commonwealth agencies. This means your invoice reminders are calibrated correctly from day one, and you know exactly when to follow up.
Smart Customer Scoring
Once you start invoicing through Unpaid, the platform builds a payment behaviour profile for each of your clients based on their actual payment history with you. Over time, you will see which clients consistently pay on time and which are slow paying clients who need earlier, more assertive follow-up. This real-world scoring complements the upfront checks described above.
Prevention Is Better Than Cure — But Have a Plan
Checking a client's payment history before you start work is one of the smartest moves you can make as a small business owner. Between the Payment Times Reporting Register, ABN Lookup, ASIC searches, commercial credit reports, and your own network, you have more information at your fingertips than ever before.
Start with the free tools. The PTRS Risk Checker at getunpaid.io/tools/client-risk-checker takes less than a minute and gives you an immediate read on any large Australian business. For smaller clients, a quick ABN Lookup and Google search can surface red flags in a few minutes.
But even the best due diligence cannot guarantee every invoice will be paid on time. Late payments are a reality of Australian business — 48% of SMBs say they are waiting longer for payments than 12 months ago (GoCardless). That is why prevention and response go hand in hand.
When invoices do go overdue, Unpaid handles the follow-up for you — with AI-powered reminders that escalate automatically, intelligent reply handling that detects disputes and promises to pay, and a customer self-service portal where clients can view and pay outstanding invoices instantly. Because the best approach to late payments is a two-part strategy: check before you start, and have a system ready when things do not go to plan.
Check your next client for free: Try the PTRS Risk Checker at getunpaid.io/tools/client-risk-checker — it takes less than a minute. Or explore how Unpaid can automate your payment follow-up from A$29/month at getunpaid.io.