A client will not pay your invoice

How the law usually works

An invoice is evidence of a debt, but it is not always the contract itself. A written agreement, accepted quote, purchase order, email exchange, or established course of dealing may show:

• What work or goods were promised
• The price and payment date
• Whether taxes, expenses, interest, or late fees apply
• What happens if the work is disputed
• Which law and court will handle a dispute
• Whether mediation, arbitration, or a notice period is required

A client may have a defense if the work was incomplete, defective, late, unauthorized, or materially different from what was agreed. The client might also claim a credit, setoff, refund, or damages. A payment dispute can therefore concern more than whether an invoice was sent.

If the contract clearly states a payment date, the client may be in breach once that date passes. If it does not, the payment may be due within a reasonable time or under a legal rule applying to that type of transaction. A party may sometimes recover interest or late charges, but these are generally strongest when agreed in the contract or authorized by applicable law.

Business-to-business debts are usually treated differently from consumer debts. Debt-collection laws may restrict threats, misleading statements, unreasonable contact, disclosure of the debt to others, or attempts to collect amounts that are not legally owed. Some consumer-protection rules can apply even when a business issued the invoice, especially where the client is an individual or the services concern a household transaction.

Common processes

1. Review the agreement and account. People commonly compare the invoice with the contract, quote, purchase order, delivery records, timesheets, change orders, and communications. They check whether all contractual conditions were met and whether the invoice includes unauthorized charges, interest, or taxes.

1. Check for a genuine dispute. A client may have stopped payment because of an alleged defect, missed deadline, incomplete work, or billing error. Identifying the specific objection often helps distinguish a refusal to pay from a dispute requiring correction or negotiation.

1. Send a polite payment reminder. A reminder usually identifies the invoice, amount, original due date, payment methods, and a new date for payment. It can invite the client to explain any genuine objection without waiving legal rights.

1. Send a formal demand. A demand letter commonly states the contractual basis for the amount, attaches or identifies supporting documents, gives a reasonable deadline, and explains that court proceedings or other lawful collection steps may follow. It is usually better to avoid threats, exaggerated claims, or statements that imply legal action has already started when it has not.

1. Negotiate or use mediation. People often propose a payment plan, partial payment, correction of disputed work, credit, or settlement. A written settlement should state the amount, dates, consequences of default, and whether payment resolves all claims. A mediator can help without deciding who is legally right.

1. Use a collection agency or solicitor. A commercial collection agency may contact the client and charge a percentage or fixed fee. A solicitor or attorney may send a demand and advise on the strength and value of a claim. Collection activity still has to comply with applicable debt-collection, privacy, harassment, and consumer-protection rules.

1. Start a court or tribunal claim. The available forum depends on the amount, location, contract terms, and whether the client is a consumer. Small-claims procedures are usually simpler and less expensive but have monetary limits and restricted remedies. Larger claims may proceed in an ordinary civil court. The claimant generally files a claim, pays a fee, serves it properly, and responds to any defense.

1. Obtain and enforce a judgment. Winning a case does not automatically produce payment. Enforcement options may include examination of the debtor’s financial position, seizure or sale of property, garnishment of money owed to the debtor, or registration of the judgment. Availability and procedure vary significantly by jurisdiction.

Deadlines and time limits

Limitation periods commonly range from about two to six years for ordinary contract or debt claims, but the exact period depends on the governing law, the type of claim, and whether the client is a consumer. Typical examples include:

• In England and Wales, a simple contract claim is commonly subject to a six-year limitation period.
• In many Canadian provinces, ordinary claims commonly have a two-year basic limitation period, with important exceptions.
• In Australia, many simple contract claims commonly have a six-year period, but state and territory laws differ.
• In the United States, contract limitation periods commonly range from about three to six years, with state-specific rules and differences between written and oral agreements.

The period may begin when payment became due, when the contract was breached, or when the claimant discovered particular facts. A part-payment, written acknowledgment, demand, negotiation, or court filing may affect the calculation in some places, but an invoice alone may not restart the period. Court claims can also have separate deadlines for serving documents, responding to a defense, or appealing.

Sources commonly give only typical ranges because exceptions are important. The applicable deadline is commonly confirmed with the court or a licensed attorney where the parties and contract are located.

Documents that usually matter

Useful records commonly include:

• The signed contract, terms of business, quote, proposal, or purchase order
• The invoice and proof that it was sent or received
• Emails, messages, meeting notes, and call records
• Timesheets, delivery confirmations, acceptance records, and photographs
• Change orders and records of additional work
• Complaints, requests to fix work, inspection reports, and responses
• Payment history and account statements
• The demand letter and proof of delivery
• Evidence of the client’s correct legal name and business address
• Records supporting interest, late fees, collection costs, or tax

People commonly preserve original electronic files and avoid altering or deleting communications. A clear chronological bundle can be more useful than a large collection of unsorted material.

How it differs by jurisdiction

United States. Small-claims limits, filing rules, interest, attorney-fee recovery, and limitation periods are mainly state-specific. The Uniform Commercial Code may apply to sales of goods, but services are usually governed by state contract law. A contract may require arbitration, mediation, or a particular court. Federal debt-collection rules may apply to certain collectors and consumer debts, but not every business owner collecting its own commercial invoice.

England and Wales. Claims for specified amounts may commonly use the online civil money-claims process where eligible. The Civil Procedure Rules govern procedure, and court fees and recoverable costs depend on the claim. The Late Payment of Commercial Debts (Interest) Act 1998 can provide statutory interest and compensation for qualifying business-to-business debts, subject to its conditions and interaction with the contract.

Canada. Contract, limitation, interest, and small-claims rules are mainly provincial or territorial. For example, Ontario has a Small Claims Court with its own monetary limit and procedures, while other provinces use different limits and forms. Federal law may matter for particular industries or businesses, but there is no single nationwide small-claims process for ordinary invoices.

Australia. Civil procedure, limitation periods, small-claims limits, and enforcement are mainly state or territory matters. The Australian Consumer Law may apply where the client is a consumer or where services are supplied to a business below relevant thresholds. State and territory courts and tribunals use different names, forms, and monetary limits. Contractual late-payment terms must also comply with general rules against unfair or unlawful terms.

When people consult a lawyer

Legal advice is particularly useful when:

• The amount is substantial or the client threatens a counterclaim
• The contract contains arbitration, jurisdiction, or complex notice clauses
• The client alleges defective work, professional negligence, fraud, or misleading conduct
• You are close to a limitation deadline
• The client is insolvent, restructuring, or likely to move assets
• A consumer, government entity, construction project, or regulated industry is involved
• You need to enforce a judgment or recover property
• You are considering a lien, personal guarantee, director claim, or bankruptcy-related action

A lawyer can also assess whether pursuing the invoice is commercially worthwhile after court fees, evidence costs, delay, and the client’s ability to pay.