Collect an unpaid invoice with three well-timed letters

How do I collect an unpaid invoice from a client?

Start with a polite written reminder. If that doesn’t work, follow up firmly in writing after 7–14 days, then send a formal demand letter by certified mail with a clear deadline. If the client still doesn’t pay, you can file in small claims court in your state, and the letters give you the written record the court will want to see.

1. A short reminder with the invoice attached (day 1). Assume good faith. A late payment is more often a disorganized accounts department than a client trying to dodge you, and a polite note settles many of them.
2. A follow-up with a date in it (about day 10). Set a specific deadline, point to any late-fee terms in your agreement, and make it plain that you are keeping track.
3. The final demand (about day 21). A formal demand letter, sent by certified mail with return receipt. It states the amount, the deadline (usually 10 business days) and what happens next: small claims court. Many judges will ask whether you asked for payment before filing, and this letter is your proof.

What is a demand letter for an unpaid invoice?

A demand letter is a formal written request for payment. It states the amount owed, the work you did, a payment deadline, and what you will do if payment doesn’t arrive, such as filing in small claims court. It is usually sent by certified mail so you have proof of delivery.

Do demand letters work?

Many clients pay at this stage, because a formal letter shows you have records and a plan, and defending a small claims case would cost them more than the invoice. The letter also gives you proof that you asked for payment before filing.

Can I take a client to small claims court for an unpaid invoice?

In most states, yes, and you don’t need a lawyer, as long as the amount is under your state’s small claims limit. Limits range from $2,500 in Kentucky to $25,000 in Delaware and Tennessee, and filing fees typically run $30–$100. Bring your invoice, your contract or emails, and copies of the collection letters you sent.

Get Paid Letters provides self-help document templates and general information. It is not legal advice, and it is not a substitute for the advice of an attorney. Kits For That is not a law firm. Statutes and small claims limits change and depend on the circumstances, so check your state’s current rules with your local court before you rely on them.