Debt prescription in South Africa: when unpaid invoices expire

Under South Africa's Prescription Act, most ordinary business debts, such as unpaid invoices for goods or services, prescribe after three years, which means you lose the right to enforce them through the courts. The three years usually start running when the debt is due, and prescription is interrupted if the debtor acknowledges the debt (for example by a part-payment or a written acknowledgement) or if you serve legal process such as a summons.

For a small business, this is a quiet risk: old invoices sitting in the 120-day-plus column of your debtors book aren't just late, they're on a clock. This is general information; speak to an attorney about specific debts.

The main prescription periods

The Prescription Act 68 of 1969 sets different periods for different debts. The most relevant ones for businesses:

Other laws can set their own periods for particular claims, so check the rule that applies to your debt.

When does the clock start?

Prescription generally begins when the debt is due: usually the invoice due date under your payment terms. If the debtor wasn't known or the facts weren't known, the start can be delayed, but for ordinary invoicing the due date is the practical starting point.

Example: an invoice dated 15 January 2026 with 30-day terms is due on 14 February 2026. Unless prescription is interrupted, the debt would prescribe in February 2029.

What interrupts prescription

Prescription is interrupted, and a new three-year period starts, when:

1. The debtor acknowledges liability, expressly or tacitly. A part-payment, a signed acknowledgement of debt, or a written request for time to pay can all count. Keep evidence.
2. You serve legal process (such as a summons) claiming the debt, provided you pursue the case.

Sending reminders, statements or letters of demand does not, on its own, interrupt prescription. Chasing politely for three years without an acknowledgement or legal action doesn't protect the debt.

Prescribed debt and the National Credit Act

If the debt arises from a credit agreement governed by the National Credit Act (for example, where you charge interest on an account under an incidental credit arrangement), extra consumer protections apply. Under amendments to the NCA, a credit provider or debt collector may not collect or re-activate a prescribed debt, and a consumer's acknowledgement of a prescribed debt does not revive it in that context. See the National Credit Regulator for guidance, and take advice before trying to collect old consumer debts.

Protecting your debtors book

Know your ageing

Run an aged receivables report monthly and flag anything approaching one to two years overdue. Our colleagues' guide to aged receivables reports explains how to read one.

Escalate on time

Don't let debts drift. A structured credit control process moves accounts from reminders to final demand to handover or legal action within months, not years.

Get acknowledgements in writing

When a customer agrees a payment arrangement, confirm it in writing and have them sign or accept an acknowledgement of debt setting out the amount and instalments.

Record part-payments properly

Allocate part-payments to specific invoices and keep the remittance details. They're evidence of acknowledgement.

Decide: collect or write off

For small amounts, the cost of legal action can exceed the debt. The Small Claims Court handles claims up to a statutory limit without lawyers; larger claims go through the Magistrates' Court. Some debts are better written off (for tax, speak to your accountant about bad debt deductions and VAT relief on irrecoverable debts).

A prescription-aware credit control timeline

How CentraPoint helps

CentraPoint keeps every invoice, part-payment and customer communication on one record, so you can see how old each debt is and prove when a customer last paid or acknowledged it. Dunning emails with payment links run automatically on overdue invoices, and reports show outstanding balances by age so nothing drifts towards prescription unnoticed. See the invoices docs and the reports features.

Frequently asked questions

How long before an unpaid invoice prescribes in South Africa?

Most ordinary debts, including unpaid invoices, prescribe three years after they become due, unless prescription is interrupted.

Does sending a statement or reminder stop prescription?

No. Reminders and statements alone don't interrupt prescription. An acknowledgement of liability by the debtor (such as a part-payment) or service of legal process does.

Can I still ask a customer to pay a prescribed debt?

For ordinary business debts, a debtor can raise prescription as a defence in court. For debts under the National Credit Act, collecting prescribed debt is restricted. Take legal advice before pursuing old debts.

Does part-payment restart prescription?

A part-payment can be a tacit acknowledgement of the debt, which interrupts prescription so a new period starts. Keep a clear record of the payment and what it was for.