First find out why they haven't paid: a dispute about the work, a bill they forgot, or money they don't have. Fix a real dispute fast, remind a forgetful customer on a fixed schedule, and offer a short written payment plan to one who is short. Only escalate to a demand letter, a collection agency or small claims after those steps, and get legal advice before you threaten anything.
An unpaid invoice ages badly. The longer it sits, the less of it you collect, because the customer's memory of the job fades and your own records get harder to find. Move through a set sequence quickly.
Step 1: find out which kind of non-payment it is
Call, don't email. Ask one question: "Is there anything about the job that's holding up payment?" The answer puts the customer into one of three groups.
| What you hear | What it usually is | What to do |
|---|---|---|
| "It's still leaking" or "That's not what we agreed" | A dispute about the work | Go back and look, fast |
| "Oh, I never saw it" | A forgotten bill | Resend with a pay link, set a reminder |
| "I can't right now" | A cash-flow problem | Offer a short written plan |
Each group gets a different track. Treating a disputed job like a deadbeat turns a fixable complaint into a bad review and a lost customer.
Step 2: resolve real disputes first
If the customer says the work isn't right, schedule a look within a day or two. Either the work was fine and you can show it (photos, readings, the signed estimate), or it wasn't and you fix it. A callback costs you a truck roll. An unpaid $1,400 invoice plus a one-star review costs more.
Your best evidence is what you captured at the time: the approved estimate, before and after photos, notes and any change the customer asked for on site. This is also why first-time fix rate matters for cash, not just for customers: a job that has to come back is a job that often doesn't get paid until it does. If the scope changed during the job and nobody wrote it down, that is where most disputes start. The quoting and estimates guide covers how to get scope approved before work begins.
Step 3: remind on a schedule, not on a mood
For forgotten bills, a fixed cadence beats ad hoc chasing:
- Day 0: invoice sent the day the job is done, with a pay link.
- Day 7: friendly reminder, same link.
- Day 14: a phone call.
- Day 30: a firm written notice: amount, job date, what happens next and by when.
Late fees and interest generally need to be in the terms the customer agreed to before the job, and some states limit them. Check with your attorney before you add them.
Step 4: offer a written plan for customers who are short
A customer who says "I can't pay it all now" is telling you they want to pay something. Take it. Agree to a short plan in writing: the total, the amounts, the dates. Two or three payments over 60 days collects far more than a demand letter sent to someone with no money.
Step 5: escalate in order
If the customer stops responding:
- Demand letter. State the amount, the job, the deadline and the next step.
- Collection agency. Agencies typically keep a share of what they collect. A third-party debt collector has to follow the federal Fair Debt Collection Practices Act; the FTC's debt collection FAQ explains what collectors can and cannot do (as of October 2026).
- Small claims court. Small claims dollar limits and filing rules vary widely by state, and some states set a lower limit for businesses. Check your state or county court's website for the current limit.
- Liens. For work on real property, many states give contractors lien rights with strict notice deadlines that often start before the job is finished. Talk to a construction attorney in your state before you rely on one.
None of this is legal advice. Rules vary by state, so talk to an attorney before you send a threat you might not be able to back.
How much chasing is worth it
Collecting has a cost. Count it before you spend a week of office time on a small bill.
When that number turns negative, write it off, note the customer and stop booking them. Your bookkeeper or CPA can tell you how to record the bad debt.
Prevent the next one at booking
The cheapest collection is the one you never have to make:
- Take a deposit on installs and large repairs, collected when the job is booked.
- Get the price approved in writing before work starts, and get changes approved on site.
- Invoice the day the job is done, while the customer can still see the result. Every day of delay lowers the odds.
- Make it easy to pay with a link the customer can pay by card from their phone.
CrewLink takes card deposits at booking for services that require one and sends invoices with a pay link, so the bill reaches the customer the same day. The field service workflow guide shows where each of these steps sits in a job's life, and the field service pricing guide covers deposit and trip-charge policy.
What to take away
- Find out why they haven't paid before you escalate: dispute, forgotten, or short on cash.
- Fix real disputes fast, with the photos and approved estimate as evidence.
- Remind on a fixed schedule: day 0, 7, 14 and 30.
- Escalate in order: demand letter, agency, small claims, and get legal advice for liens.
- Prevent it at booking: deposits, written approval, same-day invoices, a pay link.
Common questions
Can I refuse future service to a customer who hasn't paid?
For most residential service, yes, you can decline new work until the balance is paid, as long as you aren't breaking a contract or service agreement you already signed. Check any maintenance agreement terms first.
Should I charge late fees?
Generally only if late fees were in the terms the customer agreed to before the job, and only within what your state allows. Adding a fee after the fact usually makes the dispute worse and may not be enforceable.
When should I send a bill to collections?
After your written reminders and a final notice have gone unanswered, usually somewhere past 60 to 90 days. Run the expected value first. A small balance can cost more to collect than it is worth.
What is the best way to avoid unpaid invoices?
Deposits on large jobs, written approval of the price before work starts, and an invoice with a pay link sent the day the job is done. Most unpaid bills start as a slow invoice or an unapproved change.