Guide · Getting paid
What to do when a customer won't pay
Most unpaid invoices are forgotten, not refused. Start friendly, write everything down, and escalate on a schedule.
Start with a friendly reminder and the pay link. If that doesn't work, call, then send a firm written reminder, then a final notice with a date. Offer a payment plan if the customer can't pay all at once. If they still won't pay, your options are a mechanic's lien (if your state allows it for the job and you met its notice deadlines), small claims court, or a collection agency. Keep every message in writing. This is general information, not legal advice.
The escalation, step by step
- Day the invoice is due: a friendly reminder. Assume they forgot. Resend the invoice with the pay link. See payment reminder texts you can copy.
- About a week late: a second reminder and a call. Ask if anything about the work is wrong. A complaint you can fix is better than one you hear about in court.
- Two to three weeks late: a firm written reminder. Restate the amount, the invoice number, the date of the work and your payment terms.
- A month late: a final notice. Give a date and say what you'll do next. Only say it if you'll do it.
- Offer a payment plan. Some customers can pay $300 a month but not $1,800 now. Put the plan in writing and send an invoice for each payment.
- Lien, small claims or collections. See below.
The last-resort options
| Option | What it is | Watch out for |
|---|---|---|
| Mechanic's lien | A claim against the property for unpaid work on it. | Strict state deadlines and notice rules, often starting before or at the start of the job. Miss one and you may lose the right. Check your state's rules early. |
| Small claims court | A simpler court for smaller amounts, usually without a lawyer. | Each state sets its own dollar limit. A judgment still has to be collected. |
| Collection agency | A company that collects for a share of what it recovers. | You give up a portion of the money, and it can end the relationship with the customer. |
General information, not legal advice. Lien and small claims rules vary by state; check your state's courts or contractor board, or ask a lawyer.
Keep a paper trail
- The approved estimate, with the date the customer approved it.
- Any change orders, signed before the work changed. See the change order template.
- The invoice, with its number and due date.
- Every reminder you sent and when.
- Photos of the finished work.
Make the next one less likely
- Get approval in writing before you start.
- Take a deposit on bigger jobs, within your state's limit. See how much deposit to ask for.
- Bill in stages on longer jobs. See progress billing.
- Invoice before you leave, with a pay link, so paying takes the customer a minute.
- Set clear terms: due on completion, or a set number of days. See invoice payment terms.
In Settle
Settle records when the customer opened and approved the estimate, numbers every invoice, and sends a pay link the customer can use by card or bank. You can resend the invoice from your own phone as a reminder. Settle doesn't send automatic reminders or file liens.
How long should I wait before following up on an unpaid invoice?
Send a friendly reminder on the due date or a day after. Most late payments are forgotten, not refused.
Can I put a lien on a house for an unpaid bill?
Often, for work on the property, but only if you follow your state's notice and filing deadlines, some of which start before or at the beginning of the job. Check your state's rules or ask a lawyer.
Should I stop work if a customer misses a progress payment?
Check your contract first. Many contracts allow it with written notice; stopping without that right can put you in breach.
This guide is general information, not legal advice.
Send invoices with a pay link so they get paid the first time.
Free on iPhone. Unlimited estimates and invoices. 7 days of Pro to try the voice drafts, and you cancel in two taps.
Download on the App StoreiPhone, iOS 17 or later. Questions? Text Nina: (818) 945-9686