Chasing down unpaid invoices is one of the most frustrating parts of running a small business. Whether a client is ignoring your emails, disputing the amount, or just dragging their feet, you have options — and they don't all involve hiring a lawyer. Here's a step-by-step approach to getting paid what you're owed.
Sometimes invoices genuinely slip through the cracks. Send a professional follow-up email referencing the invoice number, amount, due date, and original payment terms. Attach a copy of the invoice and ask for a specific payment date.
If friendly reminders don't work, send a formal demand letter via certified mail. State the amount owed, reference the contract or agreement, set a final deadline (usually 10-14 days), and mention that you'll pursue legal remedies if not paid.
If the client wants to pay but claims financial difficulty, a structured payment plan might get you paid faster than legal action. Put the agreement in writing with specific dates and amounts, and include a clause that makes the full balance due if they miss a payment.
For amounts under your state's small claims limit (usually $5,000–$15,000), small claims court is fast, inexpensive, and doesn't require a lawyer. Filing fees are typically $30–$100, and cases are usually heard within 1-3 months.
If the amount is too small for legal action or the client has disappeared, a collection agency can recover 50-70% of the debt (they keep the rest as their fee). For very small amounts, sometimes the cost of collection exceeds the debt itself.
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