Unpaid invoices are a common frustration for small businesses across Washington. Even one overdue account can interrupt cash flow, delay payroll, and strain day-to-day operations. While the situation can feel personal, there are clear legal tools available to help you recover what you’re owed and reduce the risk of it happening again. At John L. Davis PLLC, we help small businesses throughout Clark County address these problems early and effectively so they can stay focused on running their companies.
A strong contract is your first and best line of defense. Every client engagement should be supported by a written agreement that outlines payment expectations in simple, specific language. This includes when payment is due, acceptable payment methods, late fees, interest rates, and what happens if a dispute arises. When these terms are clear from the beginning, you have solid footing if a customer later refuses to pay or disputes the work performed. We regularly review and draft contracts for Washington businesses to help them avoid loopholes or weak clauses that lead to problems down the road.
When a payment deadline passes, timing matters. Start with a friendly reminder—many overdue invoices are the result of oversight rather than misconduct. If the reminder goes unanswered, the next step is a formal demand letter. This document should restate the amount owed, the deadline for payment, and any late fees or interest that may apply. Under Washington law, you may charge interest on overdue amounts if it was included in your contract or if you follow state guidelines on allowable rates. A clear, consistent process helps demonstrate that you acted reasonably before escalating the matter further.
Some clients will respond only after legal intervention becomes a real possibility. If your attempts to resolve the issue informally have failed, it may be time to involve a business collections attorney. We help Washington businesses assess whether litigation is appropriate based on the amount owed, the strength of your contract, and the client’s likelihood of payment. A lawsuit for breach of contract can compel payment and may allow you to recover attorney fees if the contract allows. While litigation is not always the first choice, it is an effective remedy in cases where the debtor refuses to cooperate.
There are ways to enforce payment without going straight to court. A collection agency can pursue the debt on your behalf, though they will typically take a percentage of what they recover. Small claims court is another option for smaller debts, allowing you to seek up to $10,000 in Washington. Mediation or arbitration may also be worthwhile, especially when you want to preserve the business relationship or avoid costly litigation. We help clients choose the option that best fits their goals and the size of the debt.
The most reliable strategy is prevention. Vetting new clients, requesting deposits or retainers, and periodically reviewing your agreements can make a tremendous difference. Many Washington businesses find that tightening their contracts or adjusting their billing process greatly reduces unpaid invoices. We work with local companies on an ongoing basis to strengthen their legal protections and reduce risk.
If your business is facing unpaid invoices—or you want to prevent them—professional legal support can help you recover what you’re owed and safeguard your future operations. For guidance or representation, contact us at John L. Davis PLLC in Vancouver, Washington at (360) 597-4740.
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