What do I do if a client won't pay my invoice?
Send a polite reminder at 7 days late, a formal notice at 14 days (with late fees per your contract), a final demand letter at 30 days, then escalate to small claims court (under $10K) or a collections agency. Always document everything in writing.
Late-paying clients are the #1 freelancer headache. Here's the proven escalation path that recovers 80%+ of overdue invoices:
Day 1 past due — send a friendly reminder by email. Often it's a missed inbox or accounting delay.
Day 7 past due — send a firm reminder citing your contract terms. Add the late fee specified in your agreement (typically 1.5% per month, or $25-50 flat fee).
Day 14 past due — send a formal notice of overdue payment. Make clear that work will pause until paid, and reference the dispute resolution clause in your contract.
Day 30 past due — send a demand letter by email AND certified mail. State the consequences: small claims court, collections agency, or legal action. iContract's Cease and Desist Letter generator can produce a properly-formatted demand letter.
Day 45+ — escalate. For amounts under your state's small claims limit (usually $5,000-$10,000), file in small claims court. It costs $30-100 and you don't need a lawyer. For larger amounts, hire a collections attorney (they take 25-40% but only if they collect).
Prevention is key: always require a deposit (25-50%), milestone payments on projects over $1,000, and explicit late fee terms in your contract. iContract's freelance contract generator includes all of these by default.
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