What to Do When a Client Doesn't Pay
A client hasn't paid your invoice. It happens more often than it should — to freelancers, small businesses, and established companies alike.
Before you reach for the phone to call a lawyer, here is what you should know about your options, their costs, and their realistic outcomes.
The Reality of Unpaid Invoices
Most unpaid invoices are never recovered. Not because recovery is impossible, but because the cost of pursuing the matter through traditional legal channels exceeds what most people are willing — or able — to spend.
A solicitor will typically charge €200–400 per hour. A simple debt recovery case can easily consume 10–15 hours of legal time. For a €1,500 invoice, the legal fees alone can exceed the debt.
The result: most people write it off and move on. The other party knows this, and some rely on it.
Step 1: Document Everything
Before taking any action, gather your evidence:
- The original invoice with payment terms
- Any contract or written agreement
- All communications (email, WhatsApp, text) relating to the work or payment
- Proof that the work was delivered or the goods were received
- Any partial payments made
The strength of your position in any dispute process depends entirely on the quality of your documentation. A well-documented claim is resolved faster and more favourably than a poorly documented one.
Step 2: Send a Formal Written Demand
Before escalating, send a clear written demand by email (with read receipt if possible):
- State the amount owed and the original due date
- Reference the original invoice and agreement
- Set a specific deadline (7–14 days is reasonable)
- State clearly what action you will take if payment is not received
Keep the tone professional. Many unpaid invoices are resolved at this stage — the other party simply needs a formal reminder that you intend to pursue the matter.
Step 3: Consider Mediation Before Legal Action
If a formal demand does not produce payment, mediation is your next step — not a lawyer.
Here is why:
Cost: An Akordans case assessment is €29, mediation €39.50 per party. A lawyer starts at €200 per hour.
Speed: Akordans resolves most cases in 5–7 days. Court proceedings take 12–18 months on average.
Outcome: A mediation resolution is an independent, evidence-based assessment of your dispute. Even if the other party initially refuses to accept it, you now have a documented neutral assessment that says they owe you money. This carries significant weight in any subsequent legal proceedings.
Psychological pressure: Most businesses, when presented with a formal written resolution stating they owe money, pay up. The alternative — a court hearing where the resolution becomes exhibit A — is not attractive.
Step 4: Small Claims Court
If mediation does not resolve the matter, small claims court is the appropriate next step for most commercial disputes under a certain threshold (varies by jurisdiction — typically €5,000–€15,000).
Small claims procedures are designed to be accessible without a lawyer. Filing fees are relatively low. However, even if you win, enforcement of the judgment can be challenging if the other party refuses to pay.
Step 5: Formal Legal Action
For larger amounts or persistent non-payment, formal legal action may be necessary. At this stage, legal representation is advisable.
Note: having an Akordans mediation resolution on file before commencing legal proceedings demonstrates good faith on your part and strengthens your position considerably.
What Not to Do
- Do not threaten legal action unless you intend to follow through
- Do not publicly name the client on social media before pursuing formal channels
- Do not accept a payment plan without getting it in writing
- Do not wait too long — in most jurisdictions, there are time limits (statutes of limitations) on debt recovery
The Bottom Line
Most unpaid invoice disputes can be resolved without a lawyer. The key is acting promptly, documenting thoroughly, and using the right tools in the right order.
If you are dealing with an unpaid invoice right now, Akordans can help you start a free evaluation in under five minutes.