Getting Paid on Time

Prevention: Before the Invoice Is Due

The most effective late payment strategy is prevention. Every element of your contract and client onboarding process either increases or decreases the likelihood of timely payment. Key prevention measures:

• Require a deposit (25-50%) before beginning any work
• Specify clear payment terms in the contract — Net 14 or Net 21, not Net 60
• Include a late payment interest clause in your contract (1.5% per month is standard)
• Retain intellectual property rights until full payment is received
• Send invoices immediately upon milestone completion, not weeks later
• Confirm client billing contact and payment process before the project begins

The Follow-Up Sequence When Payment Is Late

Day 1 past due — Friendly reminder: A brief, professional email noting that the invoice is overdue and confirming whether the client received it. Many late payments are administrative oversights.

Day 7 past due — Direct follow-up: A clear email stating the amount owed, the original due date, and that late payment interest is accruing per your contract. Request a specific payment date.

Day 14 past due — Phone call + formal notice: Call the client directly. Follow up in writing with a formal late payment notice referencing your contract terms and stating a deadline (typically 7 additional days) before you take further action.

Day 21 past due — Escalation decision: At this point, evaluate your options: collections agency, small claims court, or attorney demand letter depending on the amount owed.

Michigan Small Claims Court

Michigan Small Claims Court handles disputes up to $6,500 with no attorney required. The filing fee is approximately $30-70 depending on claim size. File in the district court for the county where the client is located (or where the contract was to be performed). Bring your signed contract, all invoices, all email correspondence, and proof of completed work.

A written contract makes your small claims case significantly stronger. Without it, the dispute becomes a credibility contest. With it, you have a clear documented agreement the client signed.

Collections Agencies

For larger balances or clients who have gone unresponsive, a collections agency can be effective. Expect the agency to take 25-40% of any recovered amount as their fee. This is often worth it for balances above $1,000 where your own follow-up has been exhausted.

When to Involve an Attorney

For balances above $6,500 (above small claims limits) or for clients who are actively disputing your invoice, a demand letter from a Michigan attorney often resolves the situation without litigation. Attorney demand letters typically cost $150-300 and are frequently effective because they signal that you are prepared to pursue the matter in court.

FHR's Vetted Consultant Directory includes Michigan attorneys who work with freelancers on payment disputes. For the contract foundation that prevents most disputes, see: Freelance Contract Starter Guide.