What to do when a client is late paying

1. Check your own position

• Was the invoice correct, and sent to the right person, in the right form, on time?
• Does it match the agreed fee stage and services?
• Did the client raise any concern about the work?
• What does your agreement say about payment periods, interest and suspension? See How to write an appointment agreement.

2. Contact the client early and politely

Many late payments are simply oversights, internal approvals or errors. A friendly call or message, followed by an email, often solves it. Ask when payment will be made and whether there is any problem. Keep a record of what is said.

Many late payments are simply oversights, internal approvals or errors.

3. Send a reminder

If it is still unpaid, send a written reminder referring to the invoice, the due date, the contract terms and any interest due. Keep the tone calm and professional.

4. Understand the reason

Is the client in difficulty? Is there a dispute about the work? Is it an administrative delay? The answer shapes what to do. A client with temporary cash problems may agree a payment plan. A client who disputes the work needs a conversation about it.

5. Consider a payment plan

If a client genuinely cannot pay in full, an agreed plan, set out in writing, may be better than a dispute. Do not give up your rights without advice.

6. Think about your services

Continuing to work without being paid increases your exposure. Many agreements allow services to be suspended after notice if payment is overdue, and some countries give statutory rights to suspend. These rights have strict conditions, so take legal advice before suspending. Think about the effect on the project and on third parties.

7. Escalate carefully

If payment is still not made:

• send a formal letter setting out the sum owed and a date, referring to the contract;
• consider the dispute procedures in the agreement, such as mediation, adjudication or arbitration. In the UK, many construction contracts give a statutory right to adjudication. See What to do when a dispute starts;
• consider debt recovery or legal action as a last resort, weighing cost against the sum.

8. Protect yourself for next time

• Check new clients and ask for a deposit or payment on account where appropriate.
• Invoice at set stages, and keep invoices small and regular.
• Keep services in step with payments.
• Put payment terms, interest and suspension clearly in the agreement.
• Keep good records.

In short

Check your own paperwork, contact the client early, understand the reason, agree a plan if possible, take advice before suspending or taking formal steps, and put better terms in place for the future.

Start a project