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?
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.
Stumbled on this thread while searching for advice. I'm in a similar situation right now with $3,200 outstanding for 60 days. @andrew.j_13 what exact language did you use in your demand letter? Did you use a template or write it from scratch?
@this_cant_be_right_9 - 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.
Great updates here. A few additions for anyone reading this in 2024:
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.
@this_cant_be_right_9 for $3,200, definitely try the demand letter first. Court should be a last resort but don't hesitate to use it if needed.