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What to do when a client does not pay

Most unpaid invoices are not fraud: they are forgotten, lost in an inbox, or waiting on someone the client has to ask. Chasing works better when you do it in order and keep every step in writing.

Day one past due: make it easy, not awkward

• Send the invoice again with a short message: the number, the amount, the due date and how to pay. No accusation. Most of the time that is the whole story.
• Send it to the person who signs, not only to the person who hired you. On a jobsite those are often different people.

A week later: ask for a date

• Stop asking "any update?" and ask one closed question: "Can you tell me the date it will be paid?" A date is something you can follow up on; "soon" is not.
• If the client says the work was wrong, ask exactly what, in writing. That turns an excuse into a list you can price or fix.

Keep the paper in order

• The accepted estimate, the invoice, the dates you sent them, the photos of the finished job and any message agreeing to a change. If this ever goes further, the paperwork is what you have.
• Mark in your records what is paid and what is overdue, so you are not working from memory when you call.

Decide your line, before the next job

• Decide in advance what you do when an invoice passes your limit: stop starting new work for that client, ask for a deposit next time, or hand it to someone who collects. Write your terms on the estimate so nobody is surprised.
• Rules about late fees, liens and collection differ by state and by the kind of work. Check what applies where you work, or ask a professional. This page is not legal advice.

Questions

Kobrado does not provide tax, legal or accounting advice. You set your own tax rates.