FAQ · Invoice Collection

What happens if a customer does not pay an invoice?

If initial reminders and calls fail, a business has three escalation paths: collections agency referral, civil lawsuit, or write-off. A collections agency takes 25–50% of what it recovers and typically ends the client relationship. A civil lawsuit in small-claims court is viable for amounts up to the state limit (varies from $2,500 to $25,000) but requires time and filing fees, with no guarantee of collection even if you win judgment. Writing off the debt is the simplest but most costly option. The goal of early first-party follow-up — calls placed on day three past due — is to resolve the invoice before any of these escalation paths become necessary.