Customer won’t pay your invoice? The steps, in order
An unpaid invoice is a bill the customer has not paid by the agreed due date. This page explains the general rules; your state’s law decides the details.
Short answer
Check the invoice arrived and is correct. Remind in writing, politely, a few times. Send a final notice with a date and what happens next. Then choose: small claims court, a lien where your state allows one, or a write-off. Never threaten something you won’t or can’t do.
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Prevent it before the job
- Take a deposit when the customer approves the quote, within your state’s deposit limit.
- Write the scope, the price and the due date on the quote, and keep the approval.
- Put a payment link on the invoice, or take payment on the spot with a QR code.
- Ask for payment the day the job is done, while the work is in front of the customer.
The reminder sequence
Start friendly: the invoice may simply be lost. Ready-to-send texts for due today, a few days late, and the final notice are in payment-reminder texts, along with what never goes in a payment text.
The final notice
- The invoice number, the amount and the original due date.
- A new, final date to pay.
- How to pay, with a link.
- What you will do next, stated plainly, and only if you will really do it.
Send it in writing and keep a copy with the job’s quote, approval and invoice.
Small claims court
Small claims court is a state court for smaller money disputes. The dollar limit, the filing fee and the forms differ by state, so start at your state court’s self-help page.
Mechanic’s and construction liens
A lien is a claim against the property you improved. Lien rights, deadlines and required notices are state law, and some states require a notice before or early in the work. Check your state statute before the job starts, not after the invoice goes unpaid.
What you can’t do or say
The CFPB says the federal Fair Debt Collection Practices Act (FDCPA) covers collectors such as collection agencies, debt buyers and lawyers, and “doesn’t generally cover collection by the original creditor”.
The FTC warns that a creditor collecting its own debts “but uses a different name that suggests it’s a third-party debt collector” becomes a debt collector under the FDCPA.
The CFPB also says most states have their own debt-collection laws, many similar to the FDCPA, and some cover original creditors.
Sources: CFPB, What laws limit what debt collectors can say or do and FTC business blog, December 2015, read 5 October 2026
The plain rule: collect in your own business name, tell the truth about what is owed, and never threaten what you won’t or can’t do.
Writing it off
If you give up on a debt, talk to your tax preparer about whether a bad-debt deduction applies. The IRS says to keep records for 7 years if you claim a bad-debt deduction.
Source: IRS, How long should I keep records, read 5 October 2026
What a clear invoice looks like, so the next one gets paid, is in how to invoice as a contractor.
Where LeadHunter USA fits
In LeadHunter USA CRM, a quote can ask for a deposit on approval, and the invoice shows what is still owed. With LeadHunter USA Payments on, the invoice has a “Pay by card” button. You send reminders from your own phone. See how to accept card payments for the fees.
Good fit
- Contractors who want a deposit paid when the quote is approved
- Owners who want to see who owes money on each customer’s card
Not the right tool
- Anyone looking for a collection service; LeadHunter USA does not collect debts
- Anyone who needs automatic reminder texts — we don't send those today
Know who owes you, and get paid by card
Deposits on approval, invoices with a card button, and every unpaid balance on the customer’s card, free.
Create your free accountLeadHunter USA CRM
Send quotes and invoices, and keep every customer and job in one place.
Free
LeadHunter USA Payments
Customers pay you by card from your invoice or a QR code. Money lands in your bank in about 2 days.
Free to join · 3.3% + 30¢ per US card
LeadHunter USA Alerts
People nearby asking for your trade, sent to your phone the moment they post.
7 days free, then $75/month
LeadHunter USA Line
A business number for calls and texts, separate from your cell.
Coming soon
LeadHunter USA Alerts is the paid lead-alert product; the CRM does not need it. Payments needs the CRM.
More guides
- Start a home-service business: the first-month checklist
- LeadHunter USA CRM: the free CRM for contractors, and what other free plans include
- How to invoice as a contractor or handyman
- How to accept card payments as a contractor: fees and rules
- QR code payments for contractors
- Estimate vs quote vs invoice vs receipt
- How to keep track of customers in a small service business
- How to write a contractor estimate
- How much deposit a contractor can take, by state
Common questions
What can I do if a customer won’t pay my invoice?
Check the invoice reached them and is correct, remind in writing, then send a final notice with a date. After that, choose between small claims court, a lien where your state allows one, or writing it off.
Can I add a late fee?
Only if it was in the agreement the customer accepted, and within your state’s limits. Put it on the quote, not only on the invoice.
Does debt-collection law apply to me?
The CFPB says the federal FDCPA generally does not cover the original creditor collecting its own debt. Using a different name that suggests a third-party collector can bring you under it, and many state laws are similar.
How do I avoid unpaid invoices?
Take a deposit on approval, agree the scope in writing, and ask for payment the day the job is done, with a way to pay on the spot.
Should I file a mechanic’s lien?
Lien rights and deadlines are state law, and many states require a notice before or early in the work. Check your state statute, or an attorney, before the job starts.