What to Do When a Freelance Client Doesn't Pay
It's the freelancer's nightmare: you did the work, delivered the project, sent the invoice — and now the client has gone quiet. No payment. No response. Just silence.
It's a frustrating and stressful situation, but it's also a surprisingly common one. According to surveys, around 30% of freelancers have experienced a client who refused or failed to pay at some point. Knowing what to do — and doing it calmly — is one of the most important business skills a freelancer can develop.
Here's a clear, step-by-step action plan for what to do when a client doesn't pay.
Important: This guide covers general advice. For large sums or complex situations, consult a lawyer in your jurisdiction. Laws around unpaid invoices and small claims vary significantly by country and region.
Step 1: Don't Panic. Check the Facts.
Before you assume the worst, take a breath and verify a few things:
- Did you actually send the invoice? (It sounds obvious, but it happens.)
- Is the invoice addressed to the right person? Some companies have specific accounts payable contacts.
- Is the payment actually overdue, or just a day or two late? Some clients pay on the last possible day.
- Did you specify a payment method clearly?
Once you've confirmed that yes, the invoice is out, the due date has passed, and there's been no payment — move to step two.
Step 2: Send a Friendly Reminder
Most of the time, a late invoice isn't malicious. The client is busy, forgot, or the email got buried. A polite follow-up is usually enough.
Send a short, professional email referencing the invoice number, the amount, and the original due date. Assume it was an oversight. Keep the tone warm.
We have ready-to-use templates for this in our guide on invoice reminder email templates.
Step 3: Follow Up Again — Escalate Gradually
If you don't hear back after a few days, follow up again. Each message should be slightly more direct than the last, but always remain professional. There's no benefit to getting angry — it only makes the situation harder to resolve.
- Day 1 after due date: Friendly nudge
- Day 7: Polite but clear follow-up
- Day 14: Firm reminder, mention consequences (late fees, stopping work)
- Day 30: Final notice — see below
Step 4: Send a Formal Late Payment Notice
If you've followed up multiple times and still haven't been paid or heard back, it's time to send a formal notice. This is different from a reminder — it's a legal-style document that states the facts and the consequences clearly.
Your formal notice should include:
- Your name and contact details
- The client's name and contact details
- The invoice number, amount, and original due date
- A summary of your follow-up attempts (dates and what was said)
- A new deadline for payment (typically 7–14 days)
- What happens if they don't pay by the new deadline
Tip: Keep a record of every communication — emails, messages, calls. If this ends up in small claims court or with a collection agency, your paper trail is your strongest asset.
Step 5: Know Your Options If They Still Don't Pay
If the formal notice goes unanswered and the deadline passes, you have a few paths forward. Which one makes sense depends on the amount owed and your circumstances.
Late Fees
If your contract or invoice includes a late fee clause (e.g., 1.5% per month on overdue amounts), you can start applying it. This creates additional pressure to pay. Important: Late fees must be agreed upon before the work starts — you can't add them after the fact and expect them to be enforceable.
Collections Agency
For amounts over a few hundred dollars, a collections agency may be worth considering. They'll pursue the debt on your behalf, usually for a commission (typically 25–40% of what they recover). It's not ideal, but it takes the burden off you.
Small Claims Court
Small claims court is designed for exactly this kind of dispute — it's cheaper and faster than hiring a lawyer for a full lawsuit. Most jurisdictions have a limit on the amount you can claim (often $5,000–$15,000). You'll need your contract, invoices, and any communication records.
Mediation
If you'd rather avoid court, freelancer-friendly mediation services can help settle disputes. It's often cheaper and faster than going to court, and both parties can reach a resolution without the adversarial dynamic of a lawsuit.
How to Prevent This From Happening Again
The best time to deal with non-payment is before it happens. Here are a few habits that make a big difference:
- Get a signed contract before every project. Even a simple one-page agreement is better than nothing. Include payment terms, due dates, and a late fee clause.
- Ask for a deposit. A 25–50% upfront payment is standard and reasonable. It shows commitment and protects you if things go south.
- Invoice promptly. Send the invoice as soon as the work is done — or better yet, invoice in stages for longer projects.
- Track everything in one place. Use a tool like Billzy to see all your invoices, statuses, and due dates at a glance. Overdue invoices should be impossible to miss.
- Check in with new clients early. If you're working with someone for the first time, a quick check-in after the first milestone shows you're organised and attentive — and it gives you a chance to spot problems before the final invoice.
Never lose track of an invoice again
Billzy tracks your invoices, flags overdue payments, and gives you reminder templates built right in. Stay on top of what you're owed — without the stress. Free for up to 10 invoices.
Get Started Free →The Bottom Line
A client not paying is stressful — but it's not the end of the world. Stay calm, document everything, escalate gradually, and know your options. Most late payments do eventually get resolved, especially when you follow a clear process.
The freelancers who handle non-payment situations well are the ones who have a system in place before they ever need it. Set that system up now, while things are going well — so that if things aren't going well, you'll know exactly what to do.