Customer won’t pay invoice: what do I do?
When a customer won’t pay invoice balances they owe you, use the same calm, documented process every time.
Start with a polite reminder and a phone call to confirm the invoice was received and find out what’s holding it up. If that fails, get a written payment commitment, then send a formal demand letter with a deadline. If the deadline passes, place the account with an experienced collection agency or talk to an attorney.
Step by step when a customer won’t pay invoice balances
- Check your own paperwork: correct amount, contact and PO number.
- Send a friendly reminder with the invoice attached.
- Call the person who approves payment and ask for a date.
- Confirm any promise in writing.
- Send a demand letter with a firm deadline.
- Escalate to a collection agency; Business News Daily reports most companies do so at 90 to 120 days past due[source].
The full process is in our guide to collecting unpaid invoices from a business.
More answers
- What legal action for unpaid invoices can I take if a customer refuses to pay?
- Can you write off unpaid invoices?
- How much do collection agencies charge?
- Who pays collection agency fees: me or the debtor?
- How do I write a payment demand letter?
- Is small claims court for unpaid invoices better than a collection agency?
- Can I hire a collection agency to collect a debt that’s small?
- How to hire a collection agency: what are the steps?
- How to send someone to collections: what are the steps?
Sources: Business News Daily, “The Best Collection Agency Services” (page last updated Oct 17, 2024) (accessed Oct 18, 2026).
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