You delivered the work. The client accepted it. And now they're ghosting your invoice. Here's what to do about it.
First: Diagnose the Situation
Before escalating, understand why they're not paying. There are usually four reasons:
- Cash flow — They genuinely don't have the money right now.
- Dispute — They have a complaint about the work (real or imagined).
- Negligence — They simply forgot or deprioritized the invoice.
- Intentional fraud — They never intended to pay.
The solution is different for each. Let's go through them.
If Cash Flow is the Problem
Many small businesses genuinely can't pay right now. Your options:
- Offer a payment plan — Break it into two or three installments with clear dates.
- Offer a small early-payment discount — 5-10% off if paid within 10 days.
- Negotiate a partial payment — Better to collect 70% now than 100% never.
If There's a Dispute
If the client claims the work wasn't delivered or has quality issues:
- Point to your contract — what was agreed upon?
- Show evidence — emails, messages, approved deliverables.
- If the work genuinely had issues, offer a partial refund. If it didn't, hold firm.
If They Just Forgot
Most non-payment cases fall here. A friendly reminder does the trick. Consider using automated reminders — research shows businesses that follow up within 7 days of the due date collect 3x faster than those that wait a month.
If They're Deliberately Not Paying
When a client ignores multiple payment requests, it's time to escalate:
Step 1: Send a Formal Demand Letter
Use registered mail or email with read receipt. State the amount owed, the original due date, and a clear deadline (typically 14 days).
Step 2: Add Late Fees
If your contract includes late fees, this is the time to apply them. If it doesn't — consider adding them now (and referencing them going forward for future invoices).
Step 3: Engage a Collection Agency
For amounts over $500, a collection agency can be effective. They typically take 25-40% of what's recovered.
Step 4: Small Claims Court
For amounts between $500 and $10,000, small claims court is a viable option. No lawyer needed in most states. Filing fees are typically $30-$75. You don't need a lawyer to win — bring your contract, invoices, and any communication records.
How to Prevent This
The best time to prevent non-payment is before you start work:
- Get a signed contract — A simple one-page agreement with payment terms is enough.
- Collect a deposit — 25-50% upfront is standard for new clients.
- Set clear milestone payments — Break large projects into phases with payments tied to deliverables.
- Use automated reminders — DueKeep sends the right message at the right time, without you having to remember.