Client refusing to pay final invoice — contract has no late fee clause

Design studio owner here. Client owes $8,500 for completed website. It's been 90 days since invoice. They keep saying "check is coming" but nothing. My contract says "payment due within 30 days" but has no late fee or interest clause. What can I actually do?

Good news: you can still pursue the debt even without a late fee clause. They owe you the principal amount. Options in escalating order:

1. Formal demand letter (can write yourself or have lawyer send)
2. Small claims court (most states allow up to $10K, no lawyer needed)
3. Collection agency (they take 25-50% but you don't have to do anything)
4. Regular court with attorney (only worth it for larger amounts)

did you transfer ownership of the website files? if not, you might have leverage. "I'm happy to transfer all assets once the invoice is paid" is a powerful statement

Unfortunately I already deployed to their server and they have all the files. The site is live. I made that mistake early in my career and never learned...

Send a formal demand letter via certified mail. Include: amount owed, original due date, statement that you'll pursue legal action if not paid within 14 days. Something about certified mail makes people take it seriously.

For $8,500, small claims court is your best option. Filing fee is usually $30-100. You don't need a lawyer. Show up with: (1) signed contract, (2) proof of deliverables (emails, screenshots), (3) unpaid invoice, (4) evidence of payment attempts (emails). Judges see these cases all the time and are generally sympathetic to service providers.

been through this. the threat of small claims often works. when they get served with court papers, suddenly they find the budget. had a client pay same day after being served

UPDATE: Sent certified demand letter. They called within 3 days asking to "work something out." Ended up settling for $7,500 paid immediately. Took a $1K haircut but avoided court and got paid. Adding late fees and payment milestones to all future contracts.

Stumbled on this thread while searching for advice. I'm in a similar situation right now with $3,200 outstanding for 60 days. @StudioMark what exact language did you use in your demand letter? Did you use a template or write it from scratch?

@NewbieDesigner - Coming back to this a year later! I actually found a template online and modified it. Key elements: state the exact amount owed, reference the contract date and project name, include a firm deadline (I used 14 days), and mention that you'll pursue legal remedies if unpaid. Keep it professional, no threats or emotional language.

Quick update on my situation: I've now done 6 projects with the new contract that includes late fees (1.5% monthly) and milestone payments. Only had to enforce the late fee once, but just having it in writing makes clients take payment seriously.

This thread is gold. One thing I'll add: before it gets to demand letters, I've had good luck with a "final notice" email that CCs their accounts payable department (if they have one) AND their direct supervisor or CEO. The embarrassment factor often gets things moving. Obviously this only works for B2B clients.

Also started requiring 50% upfront for all new clients. Repeat clients get net-30, everyone else pays half before I start.

Great updates here. A few additions for anyone reading this in 2026:

1. Small claims limits have increased in several states. CA is now $12,500, TX is $20,000. Check your state's current limit before deciding on venue.
2. Many states now allow e-filing for small claims, making the process much easier.
3. If you're doing this regularly, consider adding a prevailing party clause to your contracts - it means the loser pays attorney fees, which gives you leverage even in larger disputes.

@NewbieDesigner for $3,200, definitely try the demand letter first. Court should be a last resort but don't hesitate to use it if needed.