Freelance Client Won’t Pay? 5 Best Steps to Get Paid


Bouncing checks, delayed payments, and endless excuses – sounds like a typical day in the life of a freelancer, right? With hundreds of freelance jobs under my belt, I understand the struggle of chasing down freelance clients who won’t pay.

“It’s been three weeks and I’m still waiting on payment.”

“Maybe the invoice got lost in the mailbox, got stuck in the spam filter, or was just forgotten about.”

“Just pay me — pretty please?”

You end up checking your bank balance 8 times a day to see if they paid, and every time your balance hasn’t changed, it makes you feel more and more stupid and upset.

Freelancer stressed out because her freelance client won't pay

After all these attempts, it may look like you’re throwing spaghetti at a wall and hoping something sticks….

You’re frustrated, angry, and annoyed.

So, what to do if your freelance client won’t pay?

Start by sending gentle yet firm reminders and resending invoices to the delinquent client. If that doesn’t work, write a Demand Letter, then follow with a Notice of Action. If the client still doesn’t pay, you can hire a collection agency, pursue arbitration, file a case in small claims court, or explore your options with an attorney.

But should you charge late fees on any overdue payments?

What should you do if a client outright refuses to pay you for work you’ve done?

Do you need to hire a collection agency to get your money?

Here’s a quick guide on what to do if your freelance client is not paying:

Infographic entitled, "What to do if your freelance client won't pay"

Take a Chill Pill — Resend the Invoice

Don’t go in all “guns blazing” and try to drag your client into court in your first attempt to get paid.

You’re not alone! A survey by the Independent Economy Council revealed that 74 percent of freelancers were not getting paid on time. 

Take a deep breath and calm your nerves.

Work on Freelance Platforms? You Might Be Covered

If you are working on a freelance platform like Upwork or Fiverr, your milestone/project will be automatically marked as “Complete” after a certain number of days.

Screenshot of Upwork fixed-price milestone automatically approved after 14 days
  • Upwork: 14 days
  • Fiverr: 3 days

We have guides on a few of those topics in case you need them:

Work with Direct Clients? Different Story.

If you’re not working through a freelance platform but instead are working directly with a freelance client that isn’t paying up, then it depends on whether this is a long-term client relationship, or if they’re a new client.

Long-Term Clients:

If it’s a long-term client, chances are that the client just forgot or the invoice got lost in the mail, so consider giving them the benefit of the doubt. You can resend the invoice with a casual reminder — nothing too harsh.

Use the template below when resending the invoice:

“Hey [CLIENT NAME],
I noticed that the payment for the last milestone is still outstanding, and I wanted to remind you that it is now past due. Can you please check its status?

I have attached a copy of the invoice for your reference. If you need any help, just give me a shout.

Best,

[YOUR NAME]”

New Clients:

If this is your first time working with a new freelance client and they’re not paying, things can get messy.

Your first step should be to stop working on their project and resend the invoice or call the client after a week. Hopefully, the client will respond and clear the pending payments. 

Every so often, the person you are in contact with is from the technical team and is not the one handling the finances. Before moving on to the serious stuff, try writing to the finance manager or the business manager along with the invoice and a copy of the contract. 

In Any Case, Pick Up The Phone!

Man answering phone call 473089

If you don’t get a response, pick up the phone. A simple phone call can work wonders, and if you get them on the phone you’ll have a much better feel for whether they’ll actually pay. Let the client know that the payment hasn’t come through yet and that you’d like to discuss it further.

Before taking the next step, first you want to make sure this doesn’t happen again: going forward, try using an invoicing tool through PayPal or Wave. They’ll save you the hassle and keep things organized.

If the client is adamant about not paying you (or if they just don’t respond), then it’s time to send out a demand letter.

Sound the Alarm — Write a Demand Letter

Sometimes, the “soft-touch-email” approach doesn’t work. Before taking it to the courts, you can send a demand letter to your freelance client.

It’s like a formal “hey, pay up” reminder, which will be on record as proof that you asked for your money.

The letter of demand also lists the legal implications, so consider it a precursor to legal action.

Do you need to hire the best attorney in town to write a demand letter? Not really. 

Drafting a Demand Letter

You can write a demand letter yourself, keeping these points in mind:

  • Amount & Actions: Clearly state the unpaid amount and the specific actions that the client should take to rectify the situation. 
  • Attached Invoice: Always attach the invoice including the late fee penalty dated as of the day you send the demand letter. Let the client know that you won’t take no for an answer.
  • Reasonable Deadline*: Give a reasonable deadline for the client to settle their debt. Most businesses allow two weeks, but since you’re a freelancer, the maximum amount of time you should give when you’re forced to send a demand letter is one week. Remember — they’re already behind the ball, so keep them accountable.
  • What Happens Next: The consequences if the client does not respond to the demand letter.
  • Your contact information and signature.
Protip: Attach other evidence to your demand letter

Here’s a subtle but extremely effective tactic in getting a non-paying freelance client to send your payment ASAP:

Don’t just attach your invoice to the Demand Letter – add the most important relevant evidence (e.g. invoices, contracts, receipts, or any other supporting material) and documentation to build your case.

Attaching other evidence isn’t necessary – so why do it?

By attaching supporting documentation to your Demand Letter, you’re showing this non-paying client that you’re organized, you’re serious about getting paid, you’ve already assembled the package of documents you’d submit to the court if you took legal action, and you have all the materials you’d need to win.

Still not sure how to write it? We got you covered.

Freelance Demand Letter Template

Here’s a Demand Letter you can use for your case. Don’t forget to personalize it.

Note: Legally, you can write a demand letter yourself, but if you are not comfortable with all the documentation, we suggest you hire an attorney to draft it for you.

In the United States, certain demand letters may come under the jurisdiction of the Fair Debt Collection Practices Act (FDCPA) or may be governed by state laws. Make sure you keep this in mind while writing the demand letter. 

After receiving the demand letter, the client will either a) pay you, b) make a counteroffer, c) refuse to pay, d) make excuses as to why they can’t pay, or e) ignore you completely. You’ll have to involve a third party if the client doesn’t respond.

What if after I send the Demand Letter, the client tries to call me & make excuses?

It’s up to you: Answer, or Send to Voicemail.

Unless you’ve done a bunch of work outside the scope of your agreed contract, you don’t need to “record the call for legal purposes.” (but if you’re billing for work that wasn’t previously agreed in writing, then definitely consult an attorney!)

If you do decide to answer, be polite but firm and get straight to business:

  • “Hello [CLIENT NAME]. The payment is past due – when can I expect full payment?”
  • Be ready to take payment on the call

If they say they’ll pay at any other point than today, then remain firm, and repeat what’s in your Demand Letter: “The invoice has been outstanding for [X WEEKS]. I trust you’ll uphold your obligation to pay the outstanding amount in full so we don’t have to take this further.”

What if they say they don’t have money, and ask me for a payment plan?

Remember this saying: In God we trust – all others pay cash. Get a firm commitment in writing together with a substantial partial payment.

“That would be possible. Can you pay [dollar amount equal to 50% of the total invoice] today?” If yes, take payment while on the call through a tool such as PayPal or Stripe. If they need to send a wire, most banks allow for online wire initiation (you will need them to send you the wire confirmation while you’re on the phone).

If they can’t pay half today, it’s up to you.

  • You can take a hardline stance, and only allow for payment plans with 50% invoice payment, or
  • If they need to pay a lower amount, you could say that the following installments would need to be paid sooner than with a 50% payment today.

In any case, don’t let them do a payment plan unless you’re taking payment today, and getting that payment plan commitment in writing.

What if the client gets nasty with me?

Remember, you’re the one who’s owed money.

People can get nasty sometimes when they’re in a tough spot – but no matter how they behave (or misbehave!), your job stays the same: get paid.

Remain professional and stay cool as a cucumber.

When in doubt, use this magic phrase I once overheard from an incredibly highly-paid attorney in a high-stakes negotiation that had gone nasty:

“If you continue to behave in this manner, I will be ending the call.”

Thankfully, I’ve only used it a few times, but it’s wildly effective. Even the most arrogant jerks quiet down real fast when they hear that. It’s brilliant in its simplicity; there’s no overt threat, there’s no mention of going to court… it’s just the politest way of saying: if you keep acting like this, you’re getting hung up on.

…and they already know what happens next.

If your client still doesn’t whip out their debit card and make things right, it’s time to take out the big guns.

Before you move forward…

Send A Notice Of Action (Extremely Effective!)

This is particularly effective when you really don’t want to go to law, and you just want to get paid.

Here’s an example of what a Notice of Action looks like:

An annotated Notice of Action or Demand Letter example that should be sent when a freelance client won't pay

Sending a Notice of Action goes beyond a Demand Letter and says, “we’re moving forward – unless you pay immediately.”

A Notice of Action simply reiterates:

  • The client owes you a debt for $X relating to the work you’ve done
  • $Y remains unpaid by the client despite ample opportunity to do so
  • You will be proceeding to take collections or legal action
  • You reserve your rights
  • You have all the documentation ready-to-go when you take the next step (don’t forget to attach all of the invoices & supporting information to your Notice of Action in the same way as you did for your Demand Letter)

I’m surprised more people don’t send a Notice of Action when attempting to collect a debt from a freelance client. It’s incredibly effective in preventing you both from having to deal with a collection agency or going to court.

Protip: Make your Notice of Action “scary”

For best results with a Notice of Action:

  • Prepare your Notice of Action
  • Print it out & physically sign it
  • Send the Notice of Action via email with Subject: [CLIENT] – NOTICE OF ACTION
  • In the body of your email, write only: “Please see attached Notice of Action.”
  • Attach the scanned notice to your email, and send with a Read Receipt
  • Send the physical notice via Signature-Required Certified Mail

If your notice doesn’t motivate the client to pay, you have several options from here:

1. Hire A Collection Agency

Collections agency worker showing papers of credit report sitting at table

Collection agencies are responsible for collecting payments from debtors. However, they charge big bucks for this, either a percentage of the amount collected or a flat rate. The collection agency’s share can range from 20 to 50 percent of the invoice.

You Need To Provide A Collection Agency With:

  • Evidence of the debt
  • Invoices
  • Contracts
  • Payment records

If you’ve taken our advice and sent it with your Demand Letter, then you should already have this information assembled.

The Collection Agency Will Then Act On Your Behalf By:

  • Sending their own demand letter informing the client of the debt and requesting immediate payment.
  • Taking legal action and file a lawsuit if the demand letter doesn’t work.
  • If the court rules in favor of the freelancer, the collection agency can use various methods to collect the debt, such as wage garnishment or bank levies.
Protip: Check out a collection agency before hiring them.

Before hiring a collection agency, check out the Better Business Bureau reviews and see if it is a member of the Commercial Collection Agency Association

2. Go To Arbitration

Image showing judge's gavel, representing arbitration with a freelance client

In arbitration, an impartial third-party arbitrator hears both sides of the dispute and makes a binding decision.

This can only be leveraged if there was an agreement in the contract between the two parties, or the client agrees after the dispute arises.

So if your client is MIA, arbitration won’t work. 

It’s important to remember that the arbitrator’s decision is final and cannot be appealed. Make sure you choose an arbitrator carefully and consider the potential consequences of the decision.

3. Take It To Small Claims Court

Image of small claims courthouse steps

Small Claims courts handle disputes where the amount in question is relatively small  — generally between $2,500 and $25,000, depending on the particular state.

It only costs $30 to $75 (in California) to file a case in a small claims court. Moreover, you don’t need a lawyer to represent you in court. 

The downside? You have to dedicate some time and effort to it. This includes preparing for the hearings, gathering invoices, and attending the hearings in person.

If your client does not show up for the hearing, typically you win the case automatically.

So what’s the problem?

  1. By choosing a small claims court to resolve your dispute, you forego the opportunity to have another judge re-examine the case. So, if fortune doesn’t smile upon you, it’s game over.
  1. Even if you win the case, it may be difficult or even impossible to enforce the judgment.

4. Hire A Lawyer

Successful businessman on black 399345

If you’ve played all your cards and your freelance client still hasn’t paid, it’s time to hire a lawyer and take it to a Superior Court.

Choosing this path may lead to a hefty legal bill, not to mention the time, effort, and energy it requires to stay in the loop.

The hourly fee attorneys charge in the US can go from $50 or $100 per hour to as high as several thousand dollars. 

Even if you hire a lawyer on a contingency basis, you’ll still have to pay money upfront to file a lawsuit and everything.

Mostly it’s a cost-benefit analysis.

Is It Worth It To Hire A Lawyer When A Freelance Client Won’t Pay?

Yes — if you have a lot of money on the line and you are willing to see this to the end.

No — if it’s a small invoice and you don’t want to empty your pockets.

Speaking from my experience, most freelancers don’t want to pursue any of these routes as it is not worth the time, effort, and hefty attorneys’ fees. 

Dollars calculator and a pen 1235889

It’s important to weigh how much the client owes you against the expenses of following up.

You need to decide for yourself — it’s either filing a lawsuit and going all in or just moving on with your freelance life.

If you’re tired of chasing after clients for payment, then you might want to check out our Upwork course where we cover how to not let freelance clients stiff you for work you’ve done.

Don’t Let Non-Payment Get o You

If it’s just a matter of “oh, I forgot to pay,” it will be resolved effortlessly. If the client is adamant about not paying you, let your lawyer do the dirty work. 

For future gigs, always conduct some background research before taking on a new client. 

Make sure your client is crystal clear on when and how they need to pay you by handing them a contract with payment terms bolder than a neon sign.

The key takeaway: weigh up the costs of the action beforehand. It’s way easier to resend an invoice than to hire a lawyer and drag a deadbeat client to court.

This article originally appeared on freelancemvp.com, is copyright Freelance MVP LLC and is not authorized to appear anywhere else. If you have found this article anywhere else, it has been stolen.

Evan Fisher

Evan is an entrepreneur, content creator, finance expert and founder of Freelance MVP. At one point, Evan was the highest-earning freelancer worldwide on Upwork by annual earnings, and his collective freelance earnings total over $2,000,000.

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