Owed Money by a Customer? Start With a Plan, Not a Confrontation

To approach a customer that owes you money, start with your records. Then make a calm, written request for payment. Keep every step factual, and keep a log of each contact. When a customer does not pay, a business owner can talk with an attorney about which next steps fit the facts of the situation. This guide walks through those steps in order.

KEW Legal is a Florida business law firm in Coral Gables and Sunny Isles Beach. Kristina E. Wilson is the lawyer responsible for this page.

Start by Organizing the Debt Before You Make Contact

Before you contact the customer, gather every record that shows what was agreed and what you delivered. That includes the signed contract or purchase order, your invoices, delivery or completion records, and any written approvals.

Next, add up the exact balance. Subtract any partial payments already received. Add late fees only if your agreement allows them. Write down the due date for each invoice, because those dates show how old the debt is.

Your paper trail matters later. If the matter moves to negotiation, a demand letter, or court, someone will ask what was agreed and when it was due. A clean file answers those questions quickly.

Timing matters too. Deadlines for bringing a claim on an oral or other unwritten contract, including one for the sale and delivery of goods, can depend on the type of contract and on exceptions, so timing should be reviewed with counsel promptly. Find out which deadline may apply to your deal early.

Make the First Contact Direct, Calm, and in Writing

The right way to approach a customer that owes you money is a short, written reminder soon after the due date. Follow up with a phone call if you get no reply.

Your first message should name the invoice number, the amount, and the due date. Ask for a specific payment date. If the customer has a problem with the bill, ask them to explain it in writing.

Avoid threats, insults, and public posts. Don’t contact the customer’s own customers. Those steps can weaken your position and make the debt harder to resolve.

Confirm agreed terms in writing, too. Between merchants, a written confirmation of a contract can satisfy the writing requirement against the party that receives it, if the confirmation is received within a reasonable time, is sufficient against the sender, and the receiving party has reason to know its contents (Fla. Stat. § 672.201). That happens unless the recipient objects in writing within 10 days, under Fla. Stat. § 672.201. Send confirmations promptly so the customer can respond.

Keep a log of every call, email, and text. Record the date and a short summary of each one.

Find Out Whether the Customer Disputes the Debt or Is Simply Not Paying

A customer who is simply not paying needs a different response than one who objects to the work. Listen for specific complaints about quality, timing, scope, or missing items. Which situation you’re in depends on the facts, so listen closely.

The right approach depends on the facts of each dispute. Notice and timing questions in a dispute over goods depend on the specific facts, so a buyer should review them with counsel as early as possible. Otherwise the buyer may be barred from any remedy. Who must prove a breach in goods that were accepted depends on the facts of the dispute, and that question is best reviewed with counsel.

If the customer raises a complaint, answer it in writing. Address the claim directly. Propose a fix, or put the disagreement on paper.

If the customer admits the debt but can’t pay in full, offer a written payment plan. Include dates and the consequence of a missed payment. Ask the customer to sign or reply to accept it. A plan that exists only in conversation is hard to enforce later.

Send a Formal Written Demand Before Taking Further Steps

A demand letter tells the customer the amount owed, why it is owed, and when payment is due. It also states what happens next if the customer does not pay.

Include the invoice or contract references and a specific deadline. Keep the tone factual. A judge or mediator may read the letter later to see how you handled the matter.

Send the letter in a way you can prove. Certified mail and email, with delivery receipts saved, work well. If the customer is a Florida LLC, notice can go to its registered agent at the registered office. It can also go to a member or manager, or to another Florida address that is in fact the company’s principal office. Confirm the registered agent before you send anything.

Settlement talks are protected. Under Fla. Stat. § 90.408, evidence of a compromise offer on a disputed claim, as well as relevant conduct or statements made in negotiations concerning a compromise, generally cannot be used to prove liability or the claim’s value. That gives you room to negotiate.

Understand the Legal Options if the Customer Still Refuses to Pay

If a customer still won’t pay, a breach of contract lawsuit is a common next step. Before you file, check the deadline, the court, and what a judgment can reach.

A seller can recover the price when the buyer fails to pay as it becomes due. This applies to goods the buyer accepted.

Where you file also matters. Under Fla. Stat. § 47.011, an action must be brought in the county where the defendant resides, where the cause of action accrued, or where the property in litigation is located. This section does not apply to actions against nonresidents.

Mediation has limits, too. Under Fla. Stat. § 44.102, a court must refer to mediation, on request of one party, a filed civil action for monetary damages, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless an listed exception applies. That rule does not cover an action filed to collect a debt.

If your contract has an attorney’s fee clause that requires a party to take action to enforce the contract, Fla. Stat. § 57.105 lets the court allow reasonable fees to the party that prevails on that contract, for contracts entered into on or after October 1, 1988.

Talk Through Your Unpaid Balance With KEW Legal

An unpaid balance can strain payroll, vendor payments, and plans for growth. Deciding how hard to push is a hard call, especially when a partner or owner is counting on you to fix it.

KEW Legal serves business owners and investors across Miami-Dade and South Florida. The firm handles contract and vendor disputes and partnership matters. If the unpaid balance ties into a disagreement with a co-owner, the partnership dispute page covers that side of the problem.

KEW Legal offers a free first consultation, which is confidential and comes with no obligation to continue. If you’d like to talk through your balance, call 305-990-2300 or send us a message.