Should I keep working for them meanwhile?

Rarely. Continuing to deliver while unpaid increases what you can lose and tells them the terms are optional.

Should I charge interest on late payment?

Many jurisdictions allow it and having it in your terms changes behaviour. Whether to actually apply it is a separate call, case by case.

When should I involve a lawyer or collection agency?

When the amount justifies the cost and your own sequence has run out. Get advice on the timing — some steps have to happen in order to preserve your options.

← Answers

What do I do about a customer who will not pay?

Move earlier than feels comfortable. Most owners wait months, then act angrily, which is the worst order. A firm, unemotional sequence starting at day one past due collects far more than a furious call at ninety days — and by ninety days you are one creditor among several.

Speed matters more than force

The invoices that get paid are the ones that were chased first. A business in trouble pays whoever is most present, and the supplier who waits three months politely is the one who gets paid last or not at all.

Have a sequence and use it every time

A reminder at due, a call at seven days, a written notice at thirty, and a decision at sixty. Written down and applied to everyone, it stops being a confrontation and becomes a process — which is easier for you and less personal for them.

Pick up the phone

Email is easy to ignore, especially by someone avoiding a conversation about money. A call finds out whether this is a dispute, a cash-flow problem, or an invoice nobody ever received — and those have completely different fixes.

Know the point where you stop

At some balance and some age, chasing costs more than collecting. Decide that line in advance rather than in the moment, and take advice before formal action — the rules on notice, interest and small claims are jurisdictional and getting them wrong is expensive.

Also asked

Should I keep working for them meanwhile?: Rarely. Continuing to deliver while unpaid increases what you can lose and tells them the terms are optional.
Should I charge interest on late payment?: Many jurisdictions allow it and having it in your terms changes behaviour. Whether to actually apply it is a separate call, case by case.
When should I involve a lawyer or collection agency?: When the amount justifies the cost and your own sequence has run out. Get advice on the timing — some steps have to happen in order to preserve your options.

Written for your trade

This is the kind of thing Solomon works through with owners using their own numbers. See how it works →