Been freelancing for years and usually just write off small unpaid amounts rather than deal with the hassle.
Now I’ve got a few bigger invoices sitting at 90+ days and wondering if I should actually pursue collections this time. Never gone that route before so not sure what to look for when reviewing which ones are worth the effort.
Before going collections, run the numbers on each invoice:
I also consider the relationship. If I might work with them again, I handle it differently than clients who’ve been problematic.
For bigger amounts, try one last direct approach first. Skip email - make an actual phone call or send certified mail. Some businesses just have messy payment processes and need that firm push.
Write off anything under $500 unless it’s slam-dunk easy to collect. Your time’s worth something.
Same thing happened to me last year - three invoices over $2k each, all hit 90 days.
Called the clients first. One paid right away and apologized for losing track. Second one set up a payment plan. Third gave me the runaround.
Sent the third client a final demand letter - 10 days before I’d send it to collections. They paid within a week.
Only use collections if it’s over $1000 and you’ve got solid docs. Most agencies take 25-40% of whatever they collect. Make sure the business is still running first - learned that lesson the hard way.
Phone calls solved two out of three for me. Sometimes people just need that nudge.
Collections are tough. I usually let small ones go. Follow up with a call to see if they respond.
Review your invoice amounts first. If it’s a small sum, forget it, as collection costs will outweigh the payback.
For larger invoices, confirm if the client is still in business and has assets to recover. Remember, collection agencies will take a significant cut, so do the math before you act.
Check the work was actually done right before going to collections. I’ve seen freelancers send stuff to collections when their work wasn’t even finished properly. You’ll lose that case and end up paying their legal fees. Look at your contract again. If you didn’t include late fees and said net 30, you’re making this harder on yourself. After 90 days, you’ve got your answer. Legit businesses pay within 60 days if they’re gonna pay at all.
I just call them first. Works better than letters.