In this week’s Freedom Friday blog and email newsletter, we’re continuing our new year series, “Top Six in 2026, and we’re talking about the six most popular topics from least year’s Freedom Friday blog and email newsletter. This week we’re talking about a topic which also made last year’s list, in fact, this topic was the second most popular from 2024 and so it made the “Top Five in 2025” list last year. In today’s Freedom Friday blog and email newsletter, I’m talking about how a small business can resolve non-payment issues, especially those regarding its customers. I get a lot of inquiries about how to handle customers (and others) who don’t pay their bills. If you’ve sent multiple invoices, followed up by phone and email, and you’re still not paid, what else can you do? If you’d like you can sue, but sometimes that should be a last resort option. You should at least consult an attorney and take some intermediate steps before filing a lawsuit because suing for non-payment can be time-consuming and expensive. At Liberty Legal Solutions, LLC, I represent small business owners for non-payment issues, but it’s hourly work, and not contingency. There is no guarantee of recovery. In today’s Freedom Friday blog and email newsletter, I’m answering the question, “How can a small business resolve non-payment issues?”
First of all, always consult a lawyer before filing any kind of lawsuit. You and your attorney should create a strategy to resolve your non-payment issues. Here are three (3) steps which you should take and discuss with your attorney:
1. Send a Final Invoice
The first step to resolve non-payment issues, especially if you have not done so already, is to send a final invoice, and the final invoice should be sent with a demand letter, either from your business itself or from your attorney, and it should include the fact that the customer has defaulted on the invoice, breached the contract, or both. It should also include the total amount owed, including any late fees, penalty, and/or interest, ask for payment to be made in full by a certain date, and inform the customer you intend to pursue legal action if the invoice is not paid in full by the deadline.
2. Decide If It’s Worth a Lawsuit
The second step to resolve non-payment issues is to decide if it’s worth a lawsuit. If you don’t receive payment after sending the final invoice and demand letter, then you need to make a business decision and figure out if it’s worth the time and expense to sue your customer. You should consider the total amount owed, the financial status of your customer (there is no guarantee of recovery and all you might get is a paper judgment), and whether you might want to sell the debt owed to a collection agency instead of filing a lawsuit.
3. Consider Small Claims or a Civil Lawsuit
The third step to resolve non-payment issues is to consider small claims or a civil lawsuit. If you and your attorney decide to file a lawsuit, you need to decide if you will file your lawsuit in small claims court or in district court. In Oklahoma, there are two different levels of small claims lawsuits, and the maximum amount which can file for is $10,000.00. You do not need a lawyer to represent you in small claims court, but if there are complex issues, an attorney should represent your business. Small claims court is the least expensive option, but even if the debt is for a moderate amount of money (between $5,000 and $10,000), it may be easier, although somewhat more expensive, to file suit in district court. A civil suit filed in district court may be more time-consuming and expensive at first, but if you get a default judgment, you may not need to physically go to court as you would in a small claims case. You also MUST be represented by an attorney if you file in district court (or your case can be dismissed). Lastly, the most common question I get is who pays for your attorney fees and costs. If you or your attorney files the lawsuit, then you are responsible for the filing fees and whatever legal fees which your attorney may charge you. However, if you get a judgment, it will usually include attorney fees and costs, which you will need to collect from your customer, along with the principal amount owed, in post-judgment proceedings such as garnishments, and of course, there is no guarantee of recovery, especially with a default judgment.
Thinking about starting a small business? Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth? Please contact me at Jonathan@libertylegalok.com to schedule a FREE consultation.
For more information about Liberty Legal Solutions, LLC, please visit our website at https://www.libertylegalok.com/