Client Won't Pay Your Invoice? Know Your Next Steps

If a client won’t pay your invoice, start by gathering your paperwork and sending a clear written demand. Fla. Stat. § 95.11 sets different filing deadlines for different types of actions; for example, an action on a judgment or decree of a court of record in this state must be commenced within 20 years.

KEW Legal is a Florida business law firm with offices in Coral Gables and Sunny Isles Beach. Kristina E. Wilson is the lawyer responsible for this page. Our team works with business owners and investors across Miami-Dade and South Florida, including vendors and contractors who are owed money.

What Counts as an Unpaid Invoice Dispute?

An unpaid invoice dispute is a claim that a customer owes you money for goods or services you already delivered. Common examples include:

• A supplier ships materials, and the customer never pays.
• A contractor finishes a job, and the client disputes the bill.
• A business partner or vendor agrees to a price, then refuses to pay the agreed amount.

Each case turns on the same questions: What did you agree to? Did you deliver? Was the bill paid?

Step 1: Gather Your Proof

Your proof decides how strong your claim is. Collect these items first:

• The signed contract, purchase order or agreed price.
• Every invoice, with dates and invoice numbers.
• Delivery receipts, work logs or signed completion records.
• Emails and texts about the work, the price and any changes.
• A clear payment history showing what was paid and what is still owed.

Many people wait and hope the client will pay. Waiting weakens your record. Put every request in writing from the start.

Step 2: Confirm the Exact Legal Name

Send your demand to the exact legal entity that signed the agreement. A trade name or a person’s nickname may not be the right party.

Check the customer’s status with the Florida Division of Corporations. The Division explains that Florida businesses must file annual reports to stay active.

If the customer is a limited liability company, Florida law allows service through its registered agent under Fla. Stat. § 48.062. If service cannot be made on a registered agent of a domestic or registered foreign limited liability company because the company ceases to have a registered agent, or because the registered agent cannot otherwise be served after one good faith attempt because of a failure to comply with this chapter or chapter 605, process may be served on any manager of a manager-managed company, any member of a member-managed company, or any person listed publicly on its latest annual report, as most recently amended (Fla. Stat. § 48.062).

Step 3: Send a Written Demand

A written demand puts the debt on record and sets a clear deadline to pay. Include:

• The total amount owed and the invoice numbers.
• The date each payment was due.
• The payment method and where to send funds.
• A short, firm statement that you expect payment by a set date.

Keep copies of everything you send and every reply you receive.

Step 4: Know the Filing Deadline

Under Fla. Stat. § 95.11, an action on a contract founded on a written instrument generally has a five-year limitations period, subject to the exceptions listed in the statute. A claim on an oral or other unwritten agreement, including one for goods sold and delivered or on a store account, must be filed within four years under § 95.11(3)(j). Fla. Stat. § 95.11 provides that a legal or equitable action on a contract founded on a written instrument is to be commenced within five years, except for the categories the statute itself excludes, such as payment bond claims and deficiency judgments.

The clock starts when the last element of the claim occurs. Fla. Stat. § 95.031 sets that accrual rule.

Verbal deals are harder to enforce. Under Florida law, an agreement that is not to be performed within one year from the making of the agreement generally must be in writing and signed by the party to be charged. A written, signed agreement protects your claim.

Step 5: Check Interest on the Unpaid Amount

Your written contract controls the interest rate. Where interest accrues without a special contract setting the rate, Fla. Stat. § 687.01 provides that the rate is the one provided for in s. 55.03.

Under § 55.03, the Chief Financial Officer sets the judgment rate each quarter. The rate averages the Federal Reserve Bank of New York discount rate for the preceding 12 months and adds 400 basis points. The statute also says it does not affect a rate set by written contract.

Step 6: Use Written Settlement Offers

A written offer can lead to a settlement before trial. Florida has two offer tools, and each has its own rules.

• Offers of judgment in damages cases. Under Fla. Stat. § 768.79, an offer must be in writing and say it is made under that section. It must name both parties and state its total amount. An offer not accepted within 30 days can lead to fee consequences. A defendant may recover reasonable costs and attorney’s fees if the judgment is one of no liability or if the plaintiff’s judgment is at least 25 percent less than the defendant’s offer. A plaintiff may recover them, for costs and fees incurred from the date the demand was filed, if the plaintiff’s judgment is at least 25 percent greater than the plaintiff’s demand.

Step 7: Avoid Fee Risk From Weak Claims

Filing a claim without facts can cost money. Strong records protect you on both sides of a dispute.

Step 8: Collect After You Win a Judgment

A judgment alone does not collect the money. A judgment lien helps you reach the debtor’s property.

Under Fla. Stat. § 55.202, a judgment lien on personal property is acquired by filing a judgment lien certificate with the Department of State. The filing generally must happen after the judgment is final, the time to move for rehearing has passed, no rehearing motion is pending, and no stay is in effect, though a court may authorize earlier filing for cause shown when it has authorized a writ of execution in the same matter.

Priority among competing judgment liens generally follows the date and time of filing, except as otherwise provided in s. 55.208, while priority between a judgment lienholder and a secured party is determined under chapter 679. File promptly once the conditions are met.

Step 9: Watch for Asset Transfers

A customer may try to move assets to avoid paying. Florida law addresses this. Under Fla. Stat. § 726.106, a transfer is fraudulent as to an earlier creditor if the debtor made it without reasonably equivalent value and was insolvent at the time. A transfer made without reasonably equivalent value can also qualify if it leaves the debtor insolvent or the debtor became insolvent as a result of it.

Common Mistakes to Avoid

• Waiting too long before sending a written demand.
• Vague invoices with no dates, amounts or invoice numbers.
• Relying on verbal promises to pay.
• Suing the wrong entity or using an outdated company name.
• Making claims without records to back them up.

Frequently Asked Questions

Talk With KEW Legal About Your Invoice

If a client has ignored your bills and you’re unsure what comes next, you may have a claim for the money owed. Kristina E. Wilson and our team at KEW Legal can review your contract and payment records with you. The first consultation is free, confidential and comes with no obligation to continue. Call 305-990-2300 or send us a message to get started.