What to do when a client won't pay: from a reminder to small claims

When a client won’t pay, go up in steps: first make sure they got a correct invoice, then follow up in writing, then call, then send a demand letter with a deadline, and offer a payment plan in writing if they can’t pay all at once. If none of that works, small claims court is the next step: in California the limit is $12,500 for individuals and $6,250 for businesses, and in Texas $20,000. For construction work, your state may also give you lien rights, with strict deadlines.

Step 1: Is the invoice actually the problem?

Before you chase, check that the customer received the invoice, that the amount matches what they agreed to, and that the work they’d question is on it. A missed email, a wrong address or a line item nobody explained can look like a customer who won’t pay. Resend it with a pay link and a short note.

Step 2: Follow up in writing, on a schedule

Polite, short and regular. Say the amount, the invoice number, the due date, and how to pay. Writing it down matters later: if you end up in court, you’ll want the record. In FieldFlow, overdue invoices get follow-up emails at 3, 7, 14 and 30 days once you switch follow-ups on, each with a link to view and pay the invoice, so you don’t have to remember to send them.

Step 3: Call

A phone call can find the real reason: a cash-flow problem, a dispute over one item, a spouse who didn’t know. If there’s a dispute, ask exactly what’s wrong. Fixing a $150 line item can unlock a $2,000 invoice.

Step 4: Send a demand letter

If calls go nowhere, send a formal written demand: the amount owed, what it’s for, the invoice and job dates, a payment deadline, and what you’ll do if it isn’t paid (for example, file in small claims). California’s courts say they want you to ask the other side for the money before you start a small claims case, by talking, writing a letter or emailing; their self-help site even has a tool to draft the letter. Keep a copy of whatever you send.

Step 5: Offer a payment plan

A customer who can’t pay all at once may pay in parts. Put the plan in writing: amounts, dates, and what happens if a payment is missed. In FieldFlow, each partial payment you record goes against the invoice, so the balance stays right.

Step 6: Small claims court

Small claims courts hear smaller cases with simpler procedures. Two examples:

• California: $12,500 for individuals and $6,250 for businesses. Lawyers can advise you before court but can’t represent you there, and the filing fee is $30 to $100.
• Texas: small claims cases are heard in justice courts and can be for no more than $20,000, excluding statutory interest and court costs.

Other states set their own limits and rules; your state court’s website will have them. Bring the signed estimate, the invoice, your written follow-ups and any photos of the finished work.

What about a mechanics lien?

For construction and home improvement work, your state may let a contractor record a lien on the property, but the deadlines are strict. In California, the lien must be recorded within 90 days of completing the work (or of the owner starting to use or accepting it), and a lawsuit to foreclose filed within 90 days of recording, or the lien is invalid. Rules differ by state and by your role on the job; talk to a construction attorney before you rely on one.

How do you make the next one less likely?

• Get the estimate signed. In FieldFlow the customer signs on your phone or from an emailed link, and both of you get the signed PDF with a record of who signed and when.
• Take a deposit on bigger jobs, collected at signing (how to take a deposit).
• Invoice before you leave with a pay link (sending an invoice from your phone).
• Turn on the follow-ups so the chasing starts without you.

The short version

Check the invoice, follow up in writing, call, send a demand letter with a deadline, offer a written payment plan, and then use small claims, or a lien where your state allows it. FieldFlow handles the signed estimate, the deposit, the pay link and the follow-ups at $19/month for the whole business, with a 90-day free trial; see payments. This is general information, not legal advice.

Questions owners ask

How long should I wait before chasing an unpaid invoice?

Follow up as soon as it's past due, politely and in writing, and keep following up on a schedule. In FieldFlow, overdue follow-up emails go out at 3, 7, 14 and 30 days once you switch them on.

What is a demand letter?

A written request for payment: what's owed, for what work, by what date, and what you'll do if it isn't paid. In California the courts want you to ask for the money before you file a small claims case, and a letter is one way to do it. Keep a copy.

What is the small claims limit?

It depends on the state. California's limit is $12,500 for individuals and $6,250 for businesses. In Texas, small claims cases are heard in justice courts and can be for no more than $20,000. Check your state's court website.

Can I put a lien on a house for an unpaid job?

Your state may give contractors lien rights, with deadlines and notice rules you must meet. In California, for example, a lien must be recorded within 90 days of completion (or of the owner starting to use or accepting the work), and a foreclosure action filed within 90 days of recording. Talk to an attorney before relying on a lien.