Getting paid · Contractors

Customer won't pay for work you've done? Here's what to do

Updated June 2026 · 5-minute read

If a customer won't pay for work you've finished, don't write it off and don't blow up. There's a proven ladder: document everything, send a firm final invoice, then a formal demand, then — only if needed — a mechanic's lien or small claims court. Most disputes settle long before court, once the customer sees you're serious. Here's each step in order.

The step-by-step: from unpaid invoice to getting paid

1 Document everything

Before anything else, gather your proof: the signed estimate or contract, every text and email, change orders, before/after photos, and proof the work was completed. A paper trail is what turns 'he said, she said' into a winnable claim — and most customers fold the moment they see you have it.

2 Send a clear, firm final invoice

Re-send the invoice with a hard due date (e.g. 'due in 7 days'), the exact amount, a one-line summary of the work, and easy ways to pay. If your contract allowed a late fee, add it now. Keep it professional — this is a business document, not an argument.

3 Make the call, then put it in writing

Call once, calm and direct: 'The job's done, the invoice is past due — when can I expect payment?' Then summarize the call in a text or email ('Confirming you'll pay $X by Friday'). Written confirmation removes their wiggle room and starts the record you'll need if it escalates.

4 Send a formal demand letter

If the deadline passes, send a written demand: the amount owed, the work performed, a final deadline, and a clear statement that you'll pursue a lien or court action if unpaid. This is your cheapest real leverage — a surprising share of stiffed invoices get paid the week a demand letter lands.

5 Escalate: mechanic's lien or small claims

Still nothing? Two strong options. A mechanic's lien attaches to the customer's property so they can't sell or refinance until you're paid — fast leverage, but deadline-driven and state-specific. Small claims court gets you a money judgment without a lawyer. Pick based on whether there's property to lien and how much you're owed.

The real fix: never chase payment again

Did the work. Got stiffed. — stop it before it starts.

Everything above is you chasing money you already earned. PaidUp flips it: you authorize the customer's card before day one, so the funds are locked in and captured the moment the job's done — no invoice to chase, no lien to file, no court. We're building it now for US tradespeople.

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FAQ

Can I charge a late fee if a customer won't pay?

Only if your contract or signed estimate said so, and within your state's limits. A late-fee clause is one of the cheapest protections you can add — put it on every estimate going forward.

How long do I have to act?

Move fast. Mechanic's lien deadlines are short — often 60–120 days from your last day of work, and they vary by state. Small claims has a longer window, but evidence and memories fade. Don't let a stiffed invoice sit for months.

Should I file a lien or go to small claims?

A lien is usually faster, stronger leverage when you improved real property (the owner can't cleanly sell or refinance with it on title). Small claims is the path when there's no property to lien or you just want a money judgment. Many contractors start with the demand letter and escalate from there.

This is general information for tradespeople, not legal advice. Lien deadlines, small-claims limits, and collection rules vary by state — check your state's rules or talk to a local attorney before acting.