Signs it’s time to put legal pressure behind your unpaid invoices
Software Companies Have Unique Debt Problems
Late payments aren’t just annoying, they’re a threat to cash flow, growth, and client stability in the software world. Whether you’re a SaaS provider or custom dev shop, you’ve probably hesitated to escalate non-payment. After all, you don’t want to jeopardize renewals, disrupt service, or create legal headaches.
But there’s a point where overdue invoices stop being a nuisance and start becoming a liability.
Here’s how to recognize when it’s time to move beyond polite reminders and involve a legal-based commercial collections partner.
1. The Balance Owed Exceeds $10,000 and Disputes Have Gone Quiet
In the tech industry, $10K might seem modest, but it adds up fast when multiple accounts go dark. If you’ve:
- Sent multiple follow-ups
- Received vague promises with no resolution
- Or had your emails ignored entirely…
…it’s time to stop giving your debtor the benefit of the doubt. Silence is not a resolution strategy.
Legal escalation isn’t just about recovering funds. It also sends a signal: you’re no longer easy to ignore.
2. You’re Being Strung Along with Partial Payments or Delay Tactics
Common stall tactics from slow-paying clients include:
- “We’re waiting on a funding round”
- “Our accounting team is behind”
- “We’ll pay next quarter once renewals go through”
Sound familiar?
These may start as legitimate reasons, but quickly morph into excuses that string you along for months.
When a client keeps pushing your payment to the bottom of the list while continuing to operate and serve other vendors, it’s a clear indicator that you’re being deprioritized, and only legal pressure will change that.
3. Your Client Is Still Using Your Platform or Deliverables
SaaS companies and software vendors often face the “subscription hostage” problem:
You don’t want to cut off access and trigger a messy fallout, but the client is actively using your product while ignoring your invoices.
If they’re benefiting from your tech and refusing to pay, you’re already in breach-of-contract territory.
A formal legal demand shows you’re willing to take the necessary next step, and often gets results faster than service suspension alone.
4. You’ve Already Offered Discounts, and They Still Haven’t Paid
Goodwill only goes so far.
If you’ve lowered the invoice, waived late fees, or made payment plans, and your client still won’t pay, you’re past the point of negotiation.
At this stage, escalation isn’t hostile. It’s necessary. A commercial collections firm with legal muscle can assert contractual leverage and present a real consequence for non-payment, without risking a total relationship breakdown.
5. Internal Staff Are Spending Too Much Time Chasing Payment
Your devs should be writing code. Your leadership team should be closing deals. If your CFO or account managers are spending hours chasing down payments instead of focusing on revenue-generating work, it’s time to outsource the problem.
Using a contingency-based legal collections firm means you don’t pay unless the funds are recovered, so there’s no risk in escalating. It also gives your internal team the freedom to move forward, knowing professionals are handling the collection behind the scenes.
Legal Collections Doesn’t Mean Burning the Bridge
When done right, legal-based B2B collections aren’t about threats. It’s about leverage, clarity, and closure.
At Stevens & Ricci, we specialize in recovering large unpaid invoices from tech clients, using a calm but firm legal process that gets results. Whether you’re chasing SaaS fees, support contracts, licensing bills, or overdue project milestones, we know how to put your claim at the top of their payment schedule.
Get Legal Leverage Without Paying Upfront
We only take on commercial cases of $10,000 or more, and you only pay if we collect. If you’re ready to stop chasing and start collecting, contact our legal desk today for a free case review.
Don’t wait until Q4 write-offs. Recover what you’ve earned.
