Late payments are one of the most consistent frustrations in freelance work. Surveys regularly put the number of freelancers who've dealt with late or non-payment at over 70%. Most of it isn't malice — it's disorganization, competing priorities, and administrative gaps on the client side. But that doesn't make it less of your problem.
Here's how to handle it systematically.
Before the Invoice Is Even Late
The best time to set expectations is before you send the first invoice.
In your contract, define payment terms clearly: due date, late fee, and what happens if payment is overdue. When you send the invoice, include those terms again. A client who sees "Net 14 — late payments subject to 1.5% monthly interest" on their invoice is less likely to let it slide than a client who received no terms at all.
Send a payment reminder the day before the due date. Keep it light: "Quick note — invoice #2026-008 for the website project is due tomorrow. Payment details are included below. Let me know if anything's needed from my end." This isn't aggressive — it's good communication, and it gives the client a chance to flag any issues before they become your problem.
Day One Overdue: The First Follow-Up
Stay neutral. Something has probably gone wrong administratively on their end, and you don't need to assume the worst.
"Hi [name], just following up on invoice #2026-008 for $3,200, which was due on [date]. Please let me know if you need any additional information to process payment, or if there's a better contact I should be reaching out to."
Attach the invoice again. Always attach the invoice. "I didn't receive it" is a surprisingly common response, and making them search for it creates friction you don't need.
Five to Seven Days Overdue: Escalate the Tone Slightly
Still professional, but now you're making clear that this is being tracked.
"Hi [name], I wanted to follow up again on invoice #2026-008, now [X] days overdue. I want to make sure this gets resolved quickly. Could you confirm when payment will be processed? If there are any issues on your end, I'm happy to discuss."
If you've been working with a day-to-day contact who isn't the billing department, now is the time to ask if you should be reaching out to someone else.
Two Weeks Overdue: Reference Your Terms
This is where your contract pays off.
"Hi [name], Invoice #2026-008 is now 14 days overdue. As per our agreement, a late payment fee of 1.5% per month has begun to accrue on the outstanding balance. I'd like to resolve this before it goes further. Please confirm a payment date by [specific date]."
Being specific ("by [date]") forces a response. Open-ended requests are easier to ignore.
Beyond Two Weeks: Your Options
If you've followed up consistently and received no response or no payment, you have a few paths:
Continue escalating internally. Request a call. Ask to be connected with their accounts payable team directly. Sometimes emails disappear — a phone call doesn't.
Send a formal demand letter. A written notice stating the amount owed, the original due date, and a final deadline before you pursue other remedies. In many jurisdictions, this is a prerequisite for small claims court.
Small claims court. For amounts within the small claims threshold (varies by jurisdiction, typically $5,000–$25,000), this is often the fastest and cheapest legal option. No lawyer required in most cases.
Debt collection agency. They take a percentage — typically 20–40% — but they handle the follow-up. Worth considering for larger amounts or when the relationship is already damaged.
Stop work on other projects. If you're mid-project on something else for the same client and payment is overdue on a previous invoice, you're within your rights to pause work until the balance is settled.
Protecting Yourself Going Forward
The best outcome of dealing with a late payment is changing how you work to prevent the next one.
Require a deposit — 25–50% upfront before work begins. This filters out clients who were never going to pay, and ensures you're not entirely exposed if things go sideways.
Invoice more frequently. Monthly invoices for long projects mean you're never waiting on three months of work. Weekly for ongoing retainers.
Add a direct payment link to your invoices. Anything that reduces friction in the payment process reduces the chance of delays.
TAV tracks payment status in real time and sends automated reminders so you don't have to manually track what's been paid and what hasn't. When something's overdue, you see it immediately — and the reminder goes out without you having to think about it.