The invoice is overdue. You've sent a reminder. Then another. The client has gone quiet, or worse — they're making excuses.
This is one of the most stressful situations in freelancing. You've done the work. You delivered what was agreed. And now you're waiting for money that should already be in your account.
This guide covers what to do — in order — when a client won't pay. And more importantly, what to put in place so it
never happens again.
First: Understand Why Clients Don't Pay
Before escalating, it's worth understanding what's actually happening. Most non-payment falls into one of three categories:
Genuine oversight. The invoice got buried in their inbox. The person who approves payments is on holiday. Their accounting process is slow. This is more common than you'd think, especially with larger companies.
Cash flow problems. The client wants to pay but doesn't have the money right now. They're stalling hoping the situation improves.
Deliberate avoidance. They're unhappy with the work, disputing the scope, or simply trying to get out of paying. This is less common but it happens.
Your approach should start with the assumption that it's category one or two — and escalate from there.
Step 1 — Send a Direct, Professional Follow-Up
Don't send a passive "just checking in" email. Be direct.
Subject: Invoice #[number] — Payment Due
Hi [name],
Invoice #[number] for $[amount] was due on [date] and remains unpaid. Please arrange payment at your earliest convenience.
If there's an issue with the invoice or the payment process, let me know and I'll help resolve it.
[Your name]
Short. Professional. No apology. No softening.
Most overdue invoices get paid at this stage. A direct, professional message signals that you're paying attention and you expect to be paid.
Step 2 — Follow Up by Phone or Voice Message
If the email gets no response within 48 hours — call.
People avoid email. A phone call is harder to ignore and harder to misread as aggressive. Keep it brief:
"Hi [name], I'm following up on invoice #[number] for $[amount] that was due on [date]. Can we sort this out today?"
If you can't reach them — leave a voicemail. The act of calling signals seriousness without being confrontational.
Step 3 — Apply the Late Payment Clause
If your contract or SOW includes a late payment clause — now is the time to reference it.
"As per our agreement, a late payment fee of 1.5% per month applies to invoices unpaid after [date]. The current balance including this fee is $[amount]."
This does two things. It demonstrates that you have a written agreement. And it creates a financial incentive to pay now rather than later.
If you don't have a late payment clause — this is why you need one. Add it to every future SOW.
Step 4 — Pause All Work
If you're still working on anything for this client — stop immediately.
"I've paused work on [project] pending resolution of the outstanding invoice. I'm happy to continue as soon as payment is received."
This is not a threat. It's a logical business decision. You don't provide services to clients who haven't paid for previous services.
Deliver this calmly and professionally. Don't let it become emotional.
Step 5 — Send a Formal Demand Letter
If you're now several weeks past the due date with no resolution — send a formal demand letter. This is a more serious escalation that signals you're prepared to take further action.
Subject: Formal Payment Demand — Invoice #[number]
Dear [name],
This is a formal demand for payment of Invoice #[number] for $[amount], originally due on [date].
Despite previous requests, this invoice remains unpaid. If full payment is not received by [date 7-14 days from now], I will pursue recovery through [small claims court / debt collection / legal action] without further notice.
[Your name]
Many clients pay at this stage. The formality of the letter makes the situation feel real in a way that emails don't.
Step 6 — Small Claims Court
For amounts under $10,000 (varies by jurisdiction) — small claims court is designed for exactly this situation. No lawyer needed. Filing fees are typically $50-100.
The process:
- File a claim at your local small claims court
- Serve the client with the claim
- Attend a hearing (often virtual)
- If you win, the court orders payment
Having a signed SOW and email trail documenting the agreed scope, delivered work, and payment terms makes your case significantly stronger.
This is why written agreements matter — not just for prevention, but for recovery.
Step 7 — Debt Collection
If small claims isn't practical — or if the client is in a different country — a debt collection agency can pursue the debt on your behalf. They typically take 25-40% of the recovered amount as their fee.
Not ideal — but better than writing off the entire invoice.
What to Do When the Client Disputes the Work
Sometimes non-payment comes with a reason: "The work wasn't what we agreed" or "This doesn't match the brief."
If you have a signed SOW with clear deliverables — you can respond directly:
"The deliverables listed in our agreement were [list]. All of these were delivered on [date] and approved on [date]. I'm happy to discuss any specific concerns, but the invoice remains due."
If you don't have anything in writing — this conversation is much harder. The client's version of what was agreed is as valid as yours. This is the most expensive version of not having a SOW.
How to Prevent This From Happening Again
Non-payment almost always traces back to one of three things missing at the project start:
No upfront payment. Taking 50% upfront is the single most effective non-payment prevention tool. You've already received half the money before doing half the work. Your exposure is limited.
No kill fee clause. If a client cancels or disputes the work, a kill fee (typically 25% of the total project fee) means you're compensated for work already done.
No written agreement. Without a signed SOW, you have no documented record of what was agreed, what was delivered, and what payment terms were accepted.
These three things — upfront payment, kill fee, written agreement — don't prevent every non-payment situation. But they prevent most of them, and they significantly strengthen your position in the ones they don't prevent.
The Difficult Truth
Chasing non-payment is expensive. Even if you eventually collect — you've spent hours on follow-up, stress, and potentially legal process. The real cost is higher than the invoice amount.
The freelancers who deal with non-payment least aren't the ones with the most aggressive collection processes. They're the ones who structure every project to minimize exposure from the start: partial payment upfront, clear written agreement, and a kill fee that applies if things go wrong.
A Statement of Work that includes these terms takes 30 seconds to generate. The alternative — chasing an unpaid invoice for weeks — costs far more than that.
Quick Reference — Non-Payment Escalation Steps
Day 1 past due → Professional follow-up email
Day 3 → Phone call or voicemail
Day 7 → Reference late payment clause
Day 7 → Pause all work
Day 14 → Formal demand letter
Day 21 → Small claims court filing
Day 30+ → Debt collection agency
Every SOW generated by stecya.com includes a kill fee clause, late payment clause, and payment schedule — the three terms that prevent most non-payment situations before they start. Free to generate, no credit card required.
