What do I do about a customer who won't pay?

By Ask a Shop OwnerUpdated Finance

Short answer

One polite call. One firm letter. Then small claims or collections. Don't let it drag past 90 days, the recovery rate falls off a cliff.

Escalate cleanly

Day 30: friendly call. Day 45: firm letter restating the debt, terms, and consequences. Day 60: stop providing service, file mechanic's lien if applicable. Day 90: small claims or collections.

Prevent the next one

The deposit you didn't take, the contract you didn't sign, the credit card you didn't pre-authorize. Most non-payment is a process failure on the front end. Tighten there.

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