Getting Paid in the Coffee Game: Using a Debt Collector and Knowing Your Rights

In the world of coffee—whether you're roasting beans in Bayswater, delivering pastries to Subiaco cafés, or running a busy espresso bar in Fremantle—cash flow is king. The margins are tight, and so are the payment cycles.

So what happens when your client doesn’t pay?

It’s a growing issue in WA’s coffee supply chain: unpaid invoices, late payments, and suppliers footing the bill for someone else’s delay.

Whether you’re a wholesaler, distributor, or café owner yourself, understanding your rights and knowing when to use a debt collector can make all the difference.

Common Payment Problems in the Coffee Industry

The café and hospitality sector is notorious for patchy cash flow. Common issues include:

• Cafés behind on their weekly bean deliveries

• Suppliers left unpaid after product drops

• ‘Handshake deals’ with no written contract

• Cafés closing down or changing hands without notice

• Frequent excuses like “I’ll pay next week” or “It’s the accountant’s fault”

  
  

These problems aren’t just frustrating—they’re business-threatening if left unchecked.

Your Right to Be Paid

If you’ve supplied goods or services—whether it’s coffee beans, baking, machinery servicing, or even barista training—you have a legal right to be paid under the agreed terms (even if it was a verbal deal or informal invoice).

In Australia, even without a written contract, a consistent record of delivery and acceptance can be legally enforceable.

You’re entitled to:

• Payment for all goods delivered and accepted

• Late payment fees or interest (if agreed in your T&Cs)

  
  

When to Use a Debt Collector

It’s not about being aggressive. It’s about getting your money back without wasting time or damaging your business.

A licensed debt collection agency can:

• Chase overdue accounts without damaging relationships

• Send professional letters of demand

• Negotiate repayment plans on your behalf

• Escalate to legal action only if necessary

Most debts are resolved at the first or second contact—many clients just need a nudge from someone outside the day-to-day conversation.

Red Flags That You Should Escalate

Consider using a debt collector if:

• Invoices are more than 14–30 days overdue with no payment in sight

• The café owner is avoiding your calls or texts

• You’ve been promised payment multiple times—but nothing arrives

• You’re wasting more time chasing than the job was worth

• You feel emotionally involved or awkward pushing for payment

Your energy is better spent running your business—not chasing debt.

Protect Yourself: Preventing Bad Debts in Hospitality

A few preventative habits go a long way:

• Always invoice clearly and on time

• Use terms and conditions that include late fees and recovery costs

• Keep records of delivery slips, emails, and payment promises

• Consider COD for first-time buyers or clients with poor payment history

• Verify ABNs and company details before setting up new wholesale accounts

Software like Xero, Square, or Invoice2go makes this easier—especially for small businesses.

Café Owners: You Have Rights Too

If you're a café owner dealing with supplier disputes or being chased for amounts you disagree with:

• Ask for clear documentation of the debt (invoices, delivery records)

• Know that you can negotiate payment terms

• Don't ignore letters—respond professionally to avoid escalation

• Seek legal advice if you think the amount is wrong or misleading

A good debt collector or legal service can work with both sides to reach a solution without damaging your reputation or business.

Case Study: $4,200 in Overdue Bean Deliveries Recovered

A Perth-based coffee roaster had three café clients falling behind—one over three months late.

After friendly reminders failed, a formal recovery process began.

All three clients paid within 10 business days.

No court, no drama—just firm, fair action.

Final Shot: Don’t Let Delays Brew into Bigger Problems

The coffee industry thrives on trust—but trust doesn’t mean chasing payments for months.

If you're owed money, or stuck in a cycle of unpaid deliveries, it's okay to take action.

Protect your business. Get paid.

And keep the espresso flowing.

Need help recovering overdue payments?

Talk to a licensed WA-based debt recovery specialist today—before it becomes a bigger issue.