How does iContract create agreements?

iContract offers fixed agreement templates that use the facts you provide and do not require AI. For specialty agreements without a fixed template, iContract can offer clearly labeled optional AI-assisted drafting.

Does iContract guarantee that an agreement is enforceable?

No. iContract is software, not a law firm, and it does not provide legal advice or guarantee that any agreement is valid or enforceable in a particular jurisdiction. Consider qualified legal review for high-stakes or jurisdiction-specific matters.

How much does a contract generator cost?

iContract offers a free tier for basic contract generation. Premium plans start at affordable rates for unlimited contracts, e-signatures, and advanced features like risk scanning and compliance monitoring.

How to Protect Yourself From Non-Paying Clients: 2026 Guide

Deposits, milestones, kill switches, lien rights, demand letters, small claims — the complete playbook for getting paid.

Published 2026-04-22 · 7 min

Prevention Is 90% of the Battle

Most non-payment situations stem from preventable contract weaknesses. Tighten your contract and you'll see non-payment drop dramatically.

Contract Clauses That Protect You

When a Payment Becomes Late

Day 1 late: Send friendly reminder. Day 7 late: Send formal reminder with late fee notice. Day 14 late: Suspend work and send notice. Day 30 late: Send formal demand letter. Day 60 late: Consider collection agency or small claims court.

Demand Letter Template

A formal demand letter often prompts payment. Include: amount owed, date payment was due, late fees accrued, deadline to pay (typically 14 days), consequences (legal action, collection agency, credit reporting), and your contact info. Send via certified mail.

Small Claims Court

For amounts under $5,000-$25,000 (varies by state), small claims is fast and cheap (no attorney needed). Bring: signed contract, invoices, communication history, proof of work completed. Process: file complaint, serve defendant, attend hearing. Most freelancers win when they have proper documentation.

Collection Agency

For larger debts, collection agencies typically take 25-50% of recovery. Worth it for amounts over $5K. Choose agencies that specialize in B2B debt and follow FDCPA rules to avoid lawsuits.

Mechanic's Lien (For Construction/IT)

Some industries can file liens against property or work product. Construction has the strongest lien rights; some states allow IT and photography liens too. Strict deadlines apply — file quickly when payment is late.

Free Bulletproof Contract Generator

iContract generates contracts with all protective clauses included: deposits, milestones, suspension rights, late fees, collection costs. Free in 2 minutes.

FAQ

Should I report non-paying clients to credit bureaus?

You can, but only if you're a regulated furnisher of credit data (most freelancers aren't). Better: list non-payers on freelancer warning sites or report to BBB if applicable.

Can I sue a client in another state?

Possible but complicated. Either sue in their state (requires travel and local counsel) or sue in your state if your contract has a forum selection clause naming your state's courts. Always include forum selection in your contracts.

What if the client is a corporation that goes bankrupt?

You become a creditor in bankruptcy. Unsecured creditors (most contractors) typically recover 0-10% of debt. Personal guarantees from owners can help, as can mechanic's liens that survive bankruptcy.

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