Not paid for work delivered — it is one of the most frustrating situations for entrepreneurs. You made agreements, correctly performed your work or delivered goods, but payment remains outstanding. When a client or buyer refuses to pay, this can have serious financial consequences.
In this article, you will learn what your rights are when you are not paid for delivered work, what steps you can take, and when legal action is worthwhile.
When is there a case of non-payment for delivered work?
There is a case of not being paid for delivered work when:
- you have performed work or delivered goods;
- this was done in accordance with the agreement;
- the invoice has been sent;
- payment remains outstanding without a valid reason.
This occurs with both business clients and private clients, but especially in business relationships, non-payment can hit hard.
Common reasons why clients do not pay
In practice, we see that clients or buyers refuse payment for various reasons:
- they claim the work was not properly performed;
- they are dissatisfied with the quality;
- they have liquidity problems;
- they try to delay payment;
- they simply stop responding.
Not every reason justifies non-payment of an invoice.
What does the contract or agreement say?
The first step when not being paid for delivered work is to review the agreements made:
- quotation or order confirmation;
- contract;
- general terms and conditions;
- agreements on payment terms.
Verbal agreements can also be legally binding, but evidence is then particularly important.
Is the buyer entitled to suspend payment?
A client may only suspend payment if there is a real and demonstrable problem with the delivered work.
However, many entrepreneurs face unfounded complaints that are used as an excuse not to pay. In that case, suspension is not permitted.
Not paid after delivery: what can you do immediately?
1. Send a clear payment reminder
If payment is not forthcoming, send a written reminder clearly stating:
- what amount is outstanding;
- what work has been delivered;
- by what date payment must be made.
2. Formally put your client in default
If the client does not respond or payment remains outstanding, a formal notice of default is often necessary. In this notice, you give the client a final opportunity to pay.
3. Gather evidence
In a dispute about not being paid for delivered work, evidence is essential. Consider:
- emails and correspondence;
- assignments and quotations;
- invoices;
- delivery documents;
- witness statements.
What if the client continues to refuse to pay?
When payment remains outstanding despite reminders, legal action may be necessary. This may consist of:
- initiating a debt collection process;
- engaging an attorney;
- initiating court proceedings.
In many cases, a formal legal approach already leads to payment without the need for proceedings.
Not paid for delivered work with international clients
With international clients, not being paid after delivery can be extra complex. Different legal systems, language barriers, and recovery options play a role.
Read more about our approach to international debt collection in the Netherlands.
Common mistakes with unpaid invoices
- waiting too long to take action;
- not formalizing clear agreements;
- not sending a notice of default;
- letting emotions take over;
- giving up too quickly.
What can Arslan Advocaten do for you?
Arslan Advocaten assists entrepreneurs who are not paid for delivered work. We assess your legal position, hold the opposing party liable, and guide debt collection and court proceedings.
Read more about our expertise in business law, our experience with commercial debt collection, and with business conflicts.
Costs and litigation funding for non-payment
In disputes concerning not being paid for delivered work, we do not, in principle, work on a no cure no pay basis. These cases require a careful legal approach.
However, this does not mean you have to bear these costs yourself. In many debt collection and payment disputes, litigation funding is available.
We work together with an independent litigation funder who — after a substantive assessment — may decide to pay all litigation costs, including:
- attorney fees;
- court fees;
- expert costs;
- costs on appeal.
If litigation funding is granted, you as a client pay nothing on balance. The litigation funder bears the full financial risk.
The litigation funder only receives compensation upon success. For you, this means that you can claim your money without financial risk.
About the author
This article was written by Onur Arslan, attorney and founder of Arslan Advocaten. He specializes in business disputes, including debt collection and payment conflicts.
Would you like to know what you can do if your client refuses to pay?