Most late payers are not refusing
When an invoice goes past due, the usual reasons are dull: the email went to spam, the bill went to the wrong spouse, the landlord pays on the first of the month, money is tight this week, or there is a question about the work nobody asked out loud. Treat every late invoice as one of those until it proves otherwise. You will collect more, and keep the customer.
The aim of a collections process is to make paying the easiest next step and to stay consistent. Decide the schedule once, write it down, and run it the same way for everyone.
The schedule
| When | Channel | Tone |
|---|---|---|
| Day of the job | Text with payment link | Friendly |
| 3 days late | Text and email | Friendly reminder |
| 10 days late | Email and text | Clear, amount and date |
| 20 days late | Phone call | Direct, helpful |
| 30 days late | Written payment plan offer | Firm, practical |
| 45-60 days late | Final written notice | Factual, says next step |
Adjust the days to your payment terms. A commercial account on 30-day terms starts its clock at day 30, not day 0.
Scripts the office can use
First reminder (text)
Hi Ava, this is Taylor at Harbor Line Plumbing. Just a reminder that invoice 1042 for $486 from the water heater repair on the 3rd is still open. You can pay here: [link]. Any questions about the work, reply here and I will help.
Firmer note (email)
Hi Ava, invoice 1042 for $486 was due on the 3rd and is now 10 days past due. A copy is attached with the photos and work summary. You can pay by card or bank at [link], or call us at the number below. If something about the invoice does not look right, please tell us so we can sort it out.
Phone call
Have the invoice open before you dial. Be brief, ask a question, then stop talking.
Hi Ava, it is Taylor from Harbor Line Plumbing. I am calling about the $486 invoice from the water heater repair. It is about three weeks past due. Is there anything about the work or the bill I can help with? ... Okay. Can we take care of it today by card, or would it help to split it into two payments?
If they raise a problem with the work, stop collecting and start listening. Book the tech back out if needed. A disputed invoice is a service problem first.
Payment plan offer
We can split the $1,920 balance into three payments of $640, on the 1st of each month starting next month. I will send this in writing for you to sign. Does that work?
Put the plan in writing, have the customer sign it, and set the reminders before each date.
Final notice (written)
Invoice 1042 for $486 is now 60 days past due. We have reached out on [dates]. Please pay by [date, 10 days out] at [link] or call us to set up a plan. If we do not hear from you by then, we will take the next step described in our terms, which is [your actual next step].
Only name a next step you will really take, and that you are allowed to take. Empty threats teach customers your notices do not matter.
Rules that keep you out of trouble
This section is about process, not legal advice. Collection rules vary by state and by who is collecting.
- Be truthful. The FTC notes that even when a business collecting its own debts is not covered by the Fair Debt Collection Practices Act, its collection activity is still covered by Section 5 of the FTC Act, which bans deceptive or unfair practices, such as false legal threats. See the FTC's business guidance.
- Collect in your own name. The same FTC guidance explains that a creditor using a different name that suggests a third party is collecting can bring itself under the FDCPA.
- Keep it private. Talk about the debt only with the customer who owes it. The FTC has acted against creditors that revealed debts to other people.
- No threats, no insults, no late-night calls. Call during normal hours and keep a log of every contact.
When the process runs out
Some invoices will not be paid by reminders. The usual options are a collection agency, small claims court, or a lien on the property for construction work. Each has its own rules and deadlines, which differ by state.
- Liens: lien rights usually come with strict deadlines and notice steps. In California, the CSLB explains that a mechanics lien generally must be recorded within 90 days of completion and foreclosed on within 90 days after recording. See CSLB's mechanics lien page. Check your own state's contractor board.
- Small claims: your state court website lists the dollar limit and filing steps.
- Agencies and attorneys: ask a local construction attorney before handing off large balances.
Run the numbers before escalating. For a $300 invoice, the time spent may cost more than the debt. Note the customer and move on.
Prevent the next one
- Collect at the job. See how to get paid faster.
- Take deposits and use progress billing on larger jobs.
- Keep a watch list. Customers who paid late before pay first next time.
- Send clear invoices with photos and a short summary. Fewer questions, faster payment.
How SWITCHBOARD handles this
SWITCHBOARD sends late-payment reminders that get firmer as the debt ages, keeps every reminder and call on the customer's record, and puts slow payers on a watch list so the office asks for a deposit or payment first next time. Payments sync to QuickBooks Online. See it on the plumbing page or in the sandbox.
Questions people ask
How soon should I follow up on an unpaid invoice?
Within a few days of the due date, with a friendly reminder and a payment link. Early, polite follow-up collects more than a stern letter weeks later.
Should I charge late fees?
Only if they are in the agreement the customer signed and allowed in your state. Check your state's rules before adding them.
What should I say on a collection call?
Say who you are, the invoice and amount, ask if there is a problem with the work or bill, then offer a way to pay today or a written plan.
Can I file a lien for an unpaid job?
Many states give contractors lien rights with strict deadlines and notice steps. Check your state's contractor board and talk to a construction attorney before filing.
Sources
- FTC Business Blog: Think your company's not covered by the FDCPA? You may want to think again (checked November 10, 2026)
- CSLB: What if a Mechanics Lien is Filed on Your Property? (checked November 10, 2026)