On this page
The short version
- Check the client actually has the invoice and has no dispute with it. Many late payments end there.
- Follow up on a schedule: the due date, then 3, 7 and 14 days after, then a phone call.
- Send a final written demand with a deadline before anything formal. Courts in Alberta and Ontario suggest trying this first.
- Small claims courts handle most small business debts. Limits and deadlines vary by province and state, so do not wait too long.
First, make sure it is really unpaid
Before you treat it as a bad debt, rule out the simple reasons an invoice goes unpaid:
- It never arrived, or went to someone who does not pay the bills. Ask who handles payment and resend it to them.
- Something on it is wrong, like a missing purchase order number or the wrong business name, and it is sitting in a pile until it is fixed.
- The client disputes part of it. Ask directly. A disagreement over one line is easier to settle than silence over the whole amount.
- The payment is on its way. Check your bank, your payment processor and any checks before you send a stern note.
Sumocat shows you when a client opens an invoice, for free, so you know whether it was seen before you follow up.
Follow up on a schedule
Chasing works best when it is regular and unemotional. Decide the schedule once and stick to it for every client:
| When | What to send |
|---|---|
| On the due date | A friendly note: invoice number, amount, due today, a link to pay. |
| 3 days after | A short reminder that it is now overdue. |
| 7 days after | A reminder that asks them to reply with a payment date. |
| 14 days after | A firmer note that mentions your late payment terms, if you have them. |
| About 3 weeks after | A phone call. Ask when it will be paid and write down the answer. |
Sumocat Pro PRO sends the first four of these for you with payment reminders: an email on the due date, then 3, 7 and 14 days after, until the invoice is paid. Replies come to your own email. If your terms include interest on overdue balances, see how to charge late fees before you add it.
Offer a way to pay
A client who cannot pay all at once may pay in parts. Offering a short plan in writing often recovers more, and sooner, than a demand. Agree the amounts and dates, then invoice each part as it comes due.
Worked example
A $3,600 overdue invoice paid in three parts
- Payment 1, now
- $1,200.00
- Payment 2, in 30 days
- $1,200.00
- Payment 3, in 60 days
- $1,200.00
- Total
- $3,600.00
Put the plan in an email the client confirms. If a payment is missed, the full balance is due, and say so in that email.
Make each payment easy. With Sumocat Pro PRO an invoice can carry a Pay button through your own Stripe account, and on an invoice split into installments the client pays the next one or the whole balance.
Send a final demand letter
If reminders and calls do not work, send a final written demand. The Alberta Court of Justice notes that you may give the other party a written demand letter before suing, and that sometimes this resolves it. Ontario’s small claims guide also suggests sending a letter or talking to the person first.
Keep it short and factual. Include:
- The invoice numbers, dates and amounts, and the total owed.
- What the work was and when it was finished.
- The reminders you sent, with dates.
- A clear deadline, such as 10 days from the letter.
- What you will do if it is not paid by then: a collection agency or a small claims filing.
Only name a next step you are prepared to take. Send the letter in a way you can prove, such as email plus registered mail, and keep a copy.
Liens and collection agencies
Construction liens. If you improved a property, a lien may let you claim against the property itself. The deadlines are short and strict. In Ontario, a contractor’s lien generally expires 60 days after the contract is completed, abandoned or terminated, or after substantial performance is certified or declared, unless it is preserved. In British Columbia, a claim of lien can be filed no later than 45 days after a certificate of completion, or after the work is completed or abandoned. Talk to a lawyer quickly if this applies to you.
Collection agencies. An agency chases the debt for a share of what it recovers. In Canada they are regulated by each province: Consumer Protection BC licenses businesses that collect debts, and in Ontario collection agencies must be registered. In the US, the Fair Debt Collection Practices Act covers third party collectors of consumer debts; the FTC notes that business debts are not covered. Check that any agency you hire is licensed where your client is.
Small claims court
Small claims courts are built for amounts like unpaid invoices: lower fees, simpler forms and, in many places, no lawyer needed. Each province and state sets its own limit and process. Some examples:
| Where | Limit | Worth knowing |
|---|---|---|
| British Columbia | Up to $5,000 at the Civil Resolution Tribunal; $5,001 to $35,000 in Provincial Court | Claims of $5,000 and under go through the tribunal before Provincial Court. |
| Alberta | Up to $100,000 in the Court of Justice | Plus interest and costs. |
| Ontario | Up to $50,000 | Raised from $35,000 on October 1, 2025. Filing a claim costs $108 for someone who files fewer than 10 a year. |
| Quebec | Up to $15,000 | Lawyers generally cannot represent the parties. |
| California | Up to $12,500, or $6,250 for a business | The lower limit applies when a business sues. |
| Texas | Up to $20,000 in Justice Court | Not counting statutory interest and court costs. |
| New York City | Up to $10,000 | Businesses may need a separate track; check the court’s rules. |
Do not wait too long
There is a deadline to sue. In Ontario and British Columbia it is generally 2 years from when the claim was discovered, and Alberta’s court says the limit is generally two years too. Rules vary by province and state, so check yours, or ask a lawyer or a court help desk.
Make it less likely next time
- Take a deposit before you start, especially from new clients. See how to ask for a deposit.
- Bill in stages on longer jobs, so no single invoice is large enough to hurt.
- Use shorter terms and print the due date as a date. See which payment terms to use.
- Get it in writing. A signed estimate or a service agreement with your payment and late fee terms is your best evidence if it ever goes to court.
- Make paying easy: a Pay button PRO and automatic reminders PRO remove most of the reasons clients pay late.
Reminders that go out on their own
On the due date, then 3, 7 and 14 days after, until it is paid. Part of Sumocat Pro.
Questions
How long should I wait before taking action on an unpaid invoice?
Start following up on the due date. If two weeks of reminders and a phone call do not get a payment date, send a final demand letter. Do not let it sit for months: the deadline to sue is generally 2 years in Ontario and British Columbia.
Can I stop working for a client who has not paid?
Often yes for future work, but check your contract first, especially in construction, where stopping in the middle of a job can have its own rules. A written agreement that says work pauses while invoices are overdue makes this much simpler.
Do I need a lawyer for small claims court?
Usually not. Small claims courts are designed for people to represent themselves, and in Quebec’s Small Claims Division lawyers generally cannot represent the parties. A lawyer can still help you prepare a larger or complicated claim.
Is it worth going to court over a small invoice?
Compare the amount with the filing fee and your time. For a few hundred dollars, a firm letter and an offer to take payments often recovers more. For larger amounts, small claims is built for exactly this.
Sources
The official pages this guide relies on, with the date we last checked each one. Rules and rates change, so check the page itself before you rely on it.
- Alberta Courts, Court of Justice: Before You Sue. albertacourts.ca/cj/areas-of-law/civil/claims/before-you-sue Checked .
- Government of Ontario, Small claims court: suing someone. www.ontario.ca/page/suing-someone-small-claims-court Checked .
- Civil Resolution Tribunal, Civil Resolution Tribunal home page. civilresolutionbc.ca/ Checked .
- Government of British Columbia, What is Small Claims Court?. www2.gov.bc.ca/gov/content/justice/courthouse-services/small-claims/how-to-guides/what-is-small-claims Checked .
- Provincial Court of British Columbia, Small claims. provincialcourt.bc.ca/navigating-court-case/small-claims Checked .
- Gouvernement du Québec, Maximum amount of small claim. www.quebec.ca/en/justice-and-civil-status/small-claims/filing-claim/maximum-amount Checked .
- Ontario e-Laws, Limitations Act, 2002, section 4. www.ontario.ca/laws/docs/02l24_e.doc Checked .
- BC Laws, Limitation Act, SBC 2012, c. 13, section 6. www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/12013_01 Checked .
- Ontario e-Laws, Construction Act, R.S.O. 1990, c. C.30. www.ontario.ca/laws/docs/90c30_e.doc Checked .
- BC Laws, Builders Lien Act, SBC 1997, c. 45, section 20. www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/97045_01 Checked .
- Consumer Protection BC, Debt collection and bailiffs. www.consumerprotectionbc.ca/get-keep-licence/debt-collection-and-bailiffs/ Checked .
- Government of Ontario, A guide for collection agencies. www.ontario.ca/page/guide-collection-agencies Checked .
- Federal Trade Commission, Debt collection FAQs. consumer.ftc.gov/articles/debt-collection-faqs Checked .
- California Courts Self Help Guide, Small claims in California. selfhelp.courts.ca.gov/small-claims-california Checked .
- Supreme Court of Texas, Misc. Docket No. 25-9105, amendments to the Texas Rules of Civil Procedure. www.txcourts.gov/media/1461822/259105.pdf Checked .
- New York State Senate, New York City Civil Court Act, section 1801. www.nysenate.gov/legislation/laws/CCA/1801 Checked .