What to Do When a Client Refuses to Pay for Freelance Work

The Reality: This Happens More Than You Think

If a client is refusing to pay your invoice, you're not alone. Studies show that 71% of freelancers have experienced late or non-payment at some point in their careers. The average freelancer loses £2,800 per year to payment disputes.

This guide will walk you through exactly what to do, from your first communication attempt to legal options if necessary.

Step 1: Stay Professional and Document Everything

When a client doesn't pay, your first instinct might be anger or panic. Resist both. Professional, documented communication is your strongest tool.

What to do:

• Send a polite follow-up email referencing the invoice number and due date
• Assume good faith first - they may have missed the invoice or had an accounting error
• Keep copies of all communication
• Log the date, time, and content of every interaction with the client

Step 2: Understand Why They're Not Paying

Clients refuse payment for different reasons. Understanding why helps you choose the right strategy:

Common reasons:

• Cash flow issues: They want to pay but can't right now
• Quality disputes: They claim the work doesn't meet standards
• Scope disputes: They claim work was "out of scope"
• Timeline disputes: They claim you were late
• Bad faith: They never intended to pay

Step 3: Gather Your Documentation

Before escalating, collect everything that proves you completed the work as agreed:

Critical documentation:

• Original contract or agreement (even if informal)
• The original scope of work
• Proof of delivery (emails, shared links, timestamps of when you sent work)
• Client feedback showing they received the work
• Any approvals or sign-offs from the client
• Records of scope changes (if they're claiming "out of scope")
• Communication history showing the project timeline

Pro tip: If you don't have good documentation, this is why payment disputes are so hard to win. For your next project, use a system like ClearTimeline that creates immutable proof of deliverables, scope, and approvals automatically.

Step 4: Send a Formal Demand Letter

If polite follow-ups don't work, send a formal demand for payment. This shows you're serious and creates a paper trail for legal action if needed.

Your demand letter should include:

• Invoice number and amount owed
• Original due date
• Summary of work completed
• Clear deadline for payment (usually 7-14 days from the letter date)
• Statement that you will pursue legal action if payment is not received

Step 5: Consider Your Legal Options

If the client still refuses to pay after formal demand, you have several options:

Small Claims Court

For amounts under £10,000 (in the UK) or similar thresholds in other countries, small claims court is affordable and doesn't require a lawyer.

• Cost: Usually £25-£455 depending on claim amount (UK)
• Timeline: 4-6 months typically
• Success rate: High if you have good documentation

Debt Collection Agency

Some freelancers use collection agencies. They take a percentage (typically 25-50%) but handle the recovery process.

Freelancer Protection Services

Services like PayProtect or WITH specialise in freelancer disputes and can help mediate or pursue payment.

Step 6: Know When to Walk Away

Sometimes the cost (time, stress, legal fees) of pursuing payment exceeds what you'd recover. Consider walking away if:

• The amount is very small (under £200-300)
• You have no documentation
• The client has no assets (pursuing judgment against someone with no money is pointless)
• Your mental health is suffering

Prevention: Stop This From Happening Again

The best way to handle payment disputes is to prevent them. Here's how:

Other prevention strategies:

• Require deposits: 25-50% upfront before starting work
• Milestone payments: Break large projects into phases with payment at each stage
• Written agreements: Always have scope, timeline, and payment terms in writing
• Vet clients: Ask for references or check their payment history
• Trust your instincts: Red flags during onboarding often predict payment issues

Key Takeaways

• Stay professional and document everything
• Understand why they're not paying before choosing your strategy
• Gather all documentation proving you completed the work as agreed
• Send a formal demand letter before pursuing legal action
• Small claims court is accessible for most freelancers with good documentation
• Prevent future disputes with proper documentation systems from Day 1

Final Thoughts

Getting stiffed by a client is one of the most frustrating experiences as a freelancer. But with the right approach and proper documentation, you can often recover payment — or at least have a clear case if you need to pursue legal action.

More importantly, implementing good documentation practices on your next project means this is far less likely to happen again.