When a customer has not paid in 60 days, the problem usually stops feeling temporary. Instead, it starts affecting payroll, inventory, and your ability to plan ahead. At the same time, the longer the balance sits, the easier it becomes for the other side to stall, dispute, or disappear.
The good news is that you can take organized steps right now to remedy this situation. Even better, these steps can improve your chances of getting paid, whether you resolve the matter through a firm demand, a payment plan, or a formal claim.
Below is a clear, business-first roadmap for commercial collections in New Jersey after an invoice hits the 60-day mark.
Why The 60-Day Mark Matters In Commercial Collections
At 60 days past due, many accounts shift from delay to risk. For example, the customer may run into cash flow issues, they may prioritize other vendors, or they may hope you will write it off. Additionally, the longer you wait, the harder it can get to preserve records, confirm delivery, and track the full communication history.
Because of that, you should treat day 60 as the point where you move from reminders to a documented collection process.
Step 1: Confirm The Basics Before You Escalate
Before you send anything more forceful, tighten your file. This step helps you avoid wasted effort and prevents the customer from derailing the conversation with avoidable confusion.
Gather and organize:
- The signed contract, credit application, or engagement terms
- All invoices, including invoice numbers, dates, and amounts
- Proof of delivery or proof the work was completed
- Purchase orders, change orders, and approvals
- Emails and texts that confirm pricing, scope, or acceptance
- Your payment terms, including late fees or interest language
- A running balance ledger showing payments and outstanding totals
Then, double-check that you invoiced the correct entity. In commercial disputes, the customer may operate under a trade name, while the legal entity differs. Therefore, confirm the name on the contract, checks, and business registration information if you have it.
Step 2: Make One Clear Payment Demand With A Deadline
Once you confirm the basics, stop sending casual nudges. Instead, send one clear demand that includes a deadline and a simple path to resolution.
A strong demand email or letter should include:
- The total amount due and the invoice list
- The original due date and how many days past due the account is
- A short summary of what you delivered
- A firm deadline, often 10 to 30 business days
- Payment instructions, including wiring details or portal links
- A request for any disputes in writing by the same deadline
- A statement that you will pursue formal collection options if they do not respond
Keep the tone professional and direct. Also, avoid emotional language. You want a document that looks reasonable if a judge reads it later.
Step 3: Watch For Delay Tactics, Then Respond With Structure
At 60+ days, many customers pivot to stalling. However, you can reduce that risk by replying with structured options.
Common delay tactics include:
- We never received the invoice
- Accounting is behind
- The decision maker is out of town
- We have questions about the scope
- We will pay next week
When you hear these, respond with proof and a deadline. For example, attach the invoice, attach delivery confirmation, and then restate the payment due date. Additionally, if they raise a scope issue, ask for specific objections in writing. That approach forces clarity and prevents endless vague complaints.
Step 4: Offer A Payment Plan Only If It Protects You
Sometimes a payment plan makes sense. However, you should not accept one that creates more risk than the original debt.
If you consider a plan, protect yourself by requiring:
- A written agreement with the full balance acknowledged
- A firm schedule with exact dates and amounts
- A default clause that accelerates the remaining balance
- Clear language on late fees or interest if your terms allow it
- Automatic payment where possible
- A personal guaranty in appropriate cases
Additionally, do not keep delivering new work to a customer who already sits 60 days past due unless you change terms immediately. For example, require payment in advance or require a retainer. Otherwise, the balance usually grows faster than your leverage.
Step 5: Decide Whether You Need A Demand Letter From Counsel
A formal demand letter can change the tone quickly. It also shows that you have organized your proof and you plan to escalate. In many commercial collections in New Jersey, that shift prompts action because the customer wants to avoid litigation costs and disruption.
A well-supported attorney demand letter often:
- Summarizes the legal basis for payment
- Lays out the evidence clearly
- Sets a final deadline
- Proposes a resolution path
- Signals the next step if they ignore it
Even if the case does not end there, the letter helps create a clean record of notice and refusal to pay.
Step 6: Know When A Collection Lawsuit Makes Business Sense
If the customer ignores demands, disputes without proof, or keeps moving deadlines, you may need to consider litigation.
A collection lawsuit can make sense when:
- You have clear proof of delivery or completed services
- The customer refuses to pay without a real dispute
- The balance justifies filing costs and time
- The customer appears solvent enough to pay
- You want a judgment you can enforce
On the other hand, if the customer has no assets, no operating business, or serious financial trouble, you may need a strategy that focuses on quick settlement or targeted enforcement options.
Step 7: Understand What Happens After You Obtain A Judgment
Obtaining a judgment does not always mean the money arrives the next day. Instead, you may need post-judgment collection steps to locate assets and enforce payment.
Depending on the facts, post-judgment options can include:
- Asset discovery tools to identify bank accounts and receivables
- Enforcement actions aimed at reachable funds
- Ongoing pressure that pushes the debtor toward resolution
Because timing matters, you should act promptly after judgment. As a result, you reduce the chance that assets move or records go cold.
Step 8: Strengthen Your Process So This Does Not Repeat
Once you handle the current account, tighten your front-end process. That way, you reduce the chance of another 60-day nonpayment problem.
Improve your system with:
- Written terms on every deal, even repeat customers
- Clear late fee language when appropriate
- Upfront deposits for new customers
- Credit checks or credit applications for larger accounts
- Shorter billing cycles for ongoing work
- Faster escalation, such as a structured 30 and 45 day plan
- A definitive collection fee due on default such as 25% of the account receivable as well as default interest such as 18% per annum
Even small changes, like confirming the correct legal entity and requiring written approvals, can increase your leverage later.
FAQs About Commercial Collections In New Jersey
1. How Long Should I Wait Before I Escalate After 60 Days Past Due?
You should escalate immediately once you hit 60 days. At that point, move to a documented demand with a deadline, then track responses and next steps.
2. What If The Customer Claims They Dispute The Invoice?
Ask for the dispute in writing with specifics. Then compare it to your contract, approvals, delivery proof, and prior communications. Vague disputes often signal delay rather than a real issue.
3. Should I Keep Working While They Owe Me Money?
In most cases, no. Instead, change terms right away. For example, require payment in advance or pause work until they bring the account current.
4. Do I Need A Contract To Collect A Commercial Debt?
A contract helps, although other proof can also support a claim, such as invoices, delivery confirmation, and written acceptance of work. However, you should build the strongest file possible before you escalate.
5. What If I Get A Judgment And They Still Do Not Pay?
You may need post-judgment collection steps to identify assets and enforce payment. Because enforcement depends on the facts, you should treat the judgment as a tool, not the finish line.
Ready To Talk Through Next Steps? Contact the Law Offices of Howard N. Sobel
If your customer has not paid in 60 days, you do not need to keep guessing or chasing. The Law Offices of Howard N. Sobel can review the documents you already have, help you choose a strategy that fits the balance and the business relationship, and then take action aimed at recovery.
To discuss commercial collections, commercial litigation, or post-judgment options in New Jersey, contact us at 856-746-4150 to schedule a consultation. Our firm represents clients throughout Camden, Burlington and Gloucester Counties, including Voorhees, Washington Township, Evesham, and Mount Laurel.
Disclaimer: This blog is intended for informational purposes only and does not establish an attorney-client relationship. It should not be considered as legal advice. For personalized legal assistance, please consult our team directly.