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<p><em>One of the freelancers&rsquo; greatest fears is not being paid or having to chase their money. Although there are ways to avoid this situation, no one is immune from a bad client. If you end up with an unpaid invoice, let us give you a few steps to follow to get your money back.</em></p> <p></p> <h3>Step 1: Read your contract</h3> <p>Before deciding to take legal action, you should read the terms and conditions of your<a href="https://www.momenteo.com/blog/the-importance-of-having-a-good-contract-of-services" target="_blank"> service contract</a>. What is written about payment terms? Do you require any down payment before starting to work? Can you wait until you receive full payment before sending the final documents? Did you mention that there will be late fees if your invoice is not paid in time?</p> <p>But what can you do if you have not signed a contract? Is it a lost cause? Yes and no. A contract of service remains more legitimate than a verbal agreement, but if both parties accept the terms and there is written proof (for example, an email), it can be considered a valid contract.</p> <p></p> <h3>Step 2: Send a friendly reminder by email</h3> <p>We know that entrepreneurs can be very busy. Also, the person in charge of accounting can be on holiday or be replaced by someone else. In sum, sometimes people can forget about your invoice. Consequently, if you have an unpaid invoice, try to communicate with the business to remind them about it. In most cases, they will fix the situation quickly.</p> <p>Did you know that you have access to a payment reminder feature when you use Momenteo? Indeed, our Explore and Plus plans allow you to save many reminders that will be sent automatically to your clients if the invoice is still unpaid. You have the choice to send reminders a few days before or after the due date.</p> <p></p> <h3>Step 3: Try to contact your client by phone</h3> <p>If your friendly reminder was unsuccessful, we invite you to take your phone and call your client directly to tell them that your invoice is still outstanding. Often, a human contact can be more effective than a simple email. Also, if your client&rsquo;s office is not too far from your home, it could be relevant to visit them.</p> <p>One of the frequent reasons why people do not pay is that they are running short of cash. If this is the case, you could offer a flexible payment plan according to the business means. If you decide to choose this option, remember to write down everything. Here is another tip: stop working for this client until you receive all your money.&nbsp;</p> <p></p> <h3>Step 4: Send a formal legal notice</h3> <p>If nothing has worked and your client ignores your reminders, you can move to the next level by sending a<a href="https://www.momenteo.com/blog/how-to-send-a-formal-legal-notice" target="_blank"> formal legal notice</a>. This legal document may not solve everything, but it is proof of your determination and will to get your money. For those who are unfamiliar with formal notices, they are like a warning that tells the wrongdoer that if nothing is done in the requested period, you will take legal action.</p> <p>But how can we write a formal legal notice? You can do it yourself or hire a lawyer to help you. Next, you must make sure that your client receives your legal document. To achieve this, you can hire a bailiff, use registered mail, or send an email with proof of receipt.</p> <p></p> <h3>Step 5: Contact a collection agency</h3> <p>Another option for an unpaid invoice is to contact a collection agency. These are businesses that specialize in debt recovery. They will use various methods to encourage your client to pay you and are generally very effective.</p> <p>Nonetheless, it is important to mention that collection agencies are not free. Indeed, most of the time, these businesses will ask for a percentage of the money they collect as payment. You must then verify if it is worth the price. Also, take the time to ask for recommendations and find a trustworthy agency.</p> <p></p> <h3>Step 6: Consider taking legal action</h3> <p>Finally, if your reminders and formal notices have failed and you are still determined to get your money, consider taking legal action. It can indeed be expensive and take several years, but it remains the official legal way. Moreover, to ensure you can convince the judge, keep all the documents related to your attempts to find a solution, whether your payment reminders, emails, contracts, or formal notices.</p> <p>If you live in Quebec, note that you have access to the Small Claims Division at the Court of Quebec if you want to sue for $15,000 or less. You could also have access to a mediator to try to settle this unpaid invoice dispute amicably.</p> <p></p> <p>In conclusion, it is not pleasant to be stuck with an unpaid invoice situation; however, as we have seen, you have access to several tools and services to help you get your money. Start with friendly reminders and then consider legal action with a formal notice if nothing changes.</p> <p>A lawyer can help you with this challenging process. We invite you to check out our interview with a<a href="https://www.momenteo.com/blog/portrait-of-a-freelancer-jennifer-guay" target="_blank"> business law attorney</a> to learn more about everything these professionals can do for you. Good luck!&nbsp;</p> <p></p>