A business does not have to accept an unpaid invoice as the cost of doing business.
When another company, customer, contractor, or client stops paying, the first step is usually figuring out exactly what is owed, why it is owed, and what evidence supports the claim. From there, a creditor may negotiate payment, send a formal demand, pursue a lawsuit, or, if a judgment is obtained, use Florida’s judgment enforcement procedures to pursue available assets.
There is an important difference between winning a debt case and collecting the money.
A judgment establishes a legal obligation. It does not automatically put a check in your company’s bank account.
Florida’s courts handle an enormous civil caseload. The state’s 2023-24 statistical report shows nearly 2.4 million county civil filings statewide, including small claims and other county civil matters. Florida’s trial courts as a whole manage more than two million civil case filings annually.
Business debt collection is only one part of that system, but the basic lesson is useful: a claim for money needs to be treated as a legal claim, not merely as an increasingly irritated series of emails.
What Should You Do When a Business Owes You Money?
Start by establishing the debt.
Look at the contract, invoice, purchase order, delivery records, emails, payment history, account statements, and any other documents showing what was agreed and what happened afterward.
Ask a few straightforward questions:
- What did the debtor agree to pay?
- What did your business provide?
- When was payment due?
- How much has been paid?
- What remains outstanding?
- Has the debtor disputed the amount or the underlying work?
- Does the contract contain provisions concerning interest, attorney’s fees, venue, or dispute resolution?
- Did anyone personally guarantee the obligation?
That last question can become important.
If the customer is an LLC or corporation, the company’s debt does not automatically become the owner’s personal debt. A creditor needs a legal basis for pursuing an individual separately, such as a guaranty or another applicable theory of liability.
That is one reason the paperwork deserves attention before anyone starts threatening to sue.
What Evidence Do You Need to Collect a Business Debt?
A creditor’s strongest evidence often consists of ordinary business records.
A signed contract is useful. So are invoices showing the amounts due, records showing that goods were delivered or services were performed, correspondence acknowledging the balance, and payment records showing what happened afterward.
Sometimes there is no single document that tells the whole story.
Florida recognizes an account stated claim in appropriate circumstances. The Florida Supreme Court has explained that an account stated depends on an agreement concerning the amount owed and an obligation to pay that amount.
Florida’s standard jury instructions describe an account stated as involving transactions for which a specific amount is due and note that an account statement is not automatically conclusive if evidence establishes fraud, mistake, or error.
So an unpaid invoice should not be treated as magic evidence.
A debtor can dispute what was billed, whether the work was completed, whether the goods were delivered, whether the amount is correct, or whether the person receiving the invoice had authority to incur the obligation.
The more clearly the business can reconstruct the transaction, the easier it becomes to evaluate the claim.
Should You Send a Demand for Payment Before Suing?
Often, yes.
A demand letter can identify the amount claimed, explain the contractual or factual basis for the debt, establish a deadline for payment, and give the debtor an opportunity to resolve the matter before litigation.
It can also reveal what the actual dispute is.
A company that responds, “We agree that we owe $40,000 but need 90 days” presents one problem.
A company that responds, “Your employees never completed the work and we owe nothing” presents another.
And a company that stops answering altogether presents yet another.
The demand process therefore has a practical purpose beyond giving someone one final chance to pay.
It can help establish what the parties actually disagree about.
Can You Sue a Business for an Unpaid Debt?
Yes, when the facts support a legally recognized claim.
The appropriate cause of action depends on the transaction. A creditor may have a breach of contract claim, an account stated claim, an open account claim, or another theory depending on the circumstances.
The contract itself can also determine what remedies are available.
Florida law generally gives five years to bring a legal or equitable action founded on a written contract or other liability founded on a written instrument. The limitations period is different for various other types of claims, including claims based on unwritten obligations.
That makes one piece of advice particularly important:
Do not assume you have plenty of time because the debtor keeps promising to pay.
A business can spend months or years hearing variations of “the check is coming” while the legal clock continues to run.
A recent Florida case illustrates the problem.
An Unpaid Legal Bill That Stayed Unpaid for Years
In LAD Commercial, LLC v. Eagle Trace at Vero Beach Homeowners’ Association, Inc., the Fourth District Court of Appeal considered a breach of contract claim arising from unpaid legal services.
The invoices totaled $20,179.08. The alleged unpaid work dated back years, and the defendant argued that the claim was barred by the statute of limitations. The litigation ultimately required the appellate court to examine when the cause of action accrued and how the contract’s payment provisions affected that analysis.
The lesson is not that every unpaid invoice becomes a statute of limitations dispute.
It is that waiting can turn a collection problem into a limitations problem.
What If the Debtor Disputes the Debt?
Then the case needs to be analyzed rather than treated as a simple collection matter.
Suppose a contractor invoices a business for $75,000. The business refuses to pay and says the contractor abandoned the project.
Now there are factual questions:
- Was there a contract?
- What work was required?
- What work was actually completed?
- Were there change orders?
- Did the customer approve them?
- Was the work defective?
- Did the customer terminate the contract?
- What damages did either side suffer?
The invoice alone cannot answer those questions.
Commercial litigation often turns on reconstructing the transaction from the documents and testimony rather than simply proving that an invoice exists.
Can You Sue the Owner of an LLC Personally?
Not merely because the LLC owes the money.
An LLC is a separate legal entity, and the existence of a business debt does not automatically create personal liability for its members.
A personal guaranty can change that.
So can other circumstances, depending on the facts and applicable law.
This is an area where careless collection advice can create a serious problem. A creditor should identify the actual legal basis for pursuing an individual instead of assuming that the person who owns the company and the company itself are interchangeable.
If the contract says that the company’s owner personally guarantees payment, that provision deserves close examination.
If there is no guaranty, the analysis is different.
What Happens If You File a Business Debt Lawsuit?
The case moves into the ordinary civil litigation process.
Depending on the claim and amount involved, that can include:
- Filing the complaint
- Serving the defendant
- Receiving the defendant’s response
- Conducting discovery
- Negotiating a settlement
- Resolving motions and disputed legal issues
- Preparing for trial if necessary
- Obtaining a judgment
Florida’s civil procedure system was significantly updated beginning January 1, 2025. The changes emphasize active case management, deadlines, initial discovery disclosures, supplementation, and discovery proportional to the needs of the case.
That does not mean every unpaid invoice will turn into a dramatic courtroom battle.
Many cases settle.
Some are resolved through motion practice.
Some proceed to trial.
And some defendants simply fail to respond, creating a different procedural situation.
The important point is that filing a lawsuit starts a legal process. It does not mean the creditor can immediately take the debtor’s property.
What Happens After You Win a Judgment?
This is the part that the old article barely addressed.
A judgment is not the same thing as payment.
Florida law provides several mechanisms for enforcing money judgments.
Under Florida Statute § 77.03, a judgment creditor can seek a writ of garnishment after obtaining a judgment. Garnishment can reach certain money or property held by a third party for the judgment debtor, subject to the requirements and limitations of Florida law.
Florida’s execution statutes also provide for levy and sale of certain property to satisfy a judgment. Section 56.061 identifies categories of property subject to execution, including certain real and personal property and corporate stock.
Florida also permits a judgment creditor to acquire a judgment lien on certain personal property, including property subject to execution and certain payment intangibles and accounts.
Those remedies can matter when a debtor has assets but simply refuses to pay.
They also have limits.
Property may be exempt. Other creditors may have priority. Secured creditors may have existing rights. Bankruptcy can change the situation entirely.
A judgment gives the creditor legal leverage and enforcement tools. It does not create assets that do not exist.
Can You Garnish a Business Bank Account?
Potentially, but garnishment has a specific legal procedure.
Florida Statute § 77.03 provides for issuance of a writ after judgment. Florida law also permits pre-judgment garnishment in certain circumstances, but the requirements are considerably more specific. Section 77.031 requires a verified motion or affidavit containing particular factual allegations, including the nature and amount of the claim and why the plaintiff believes the defendant will not have sufficient property available for execution.
That is a good example of why “just garnish their account” is not legal strategy.
There is a procedure.
There are requirements.
And there may be defenses and exemptions.
What If the Debtor Has Assets but Still Refuses to Pay?
Florida’s judgment enforcement statutes give creditors tools for investigating and reaching certain property.
Chapter 56 includes proceedings supplementary, which can be used in appropriate circumstances after a judgment. Florida law also addresses discovery concerning a judgment debtor’s assets and execution procedures.
A judgment creditor may therefore have options even when the debtor has not voluntarily written the check.
But those options depend heavily on what the debtor actually owns, how the assets are titled, whether other creditors have claims, and whether exemptions or other legal restrictions apply.
That investigation can become particularly important when a business appears to be operating normally while claiming that it has no money to satisfy a judgment.
Can You Recover Attorney’s Fees and Interest?
Sometimes.
Attorney’s fees are not automatically awarded simply because a business wins a lawsuit.
A contract may provide for attorney’s fees. Florida Statute § 57.105(7) provides reciprocity for certain contractual attorney’s fee provisions, allowing the prevailing party to recover reasonable attorney’s fees in an action concerning a contract when the statutory requirements are met.
Florida’s courts have also dealt with the issue in collection cases.
In Ham v. Portfolio Recovery Associates, LLC, the Florida Supreme Court considered whether a contractual attorney’s fee provision could become reciprocal when the creditor pursued an account stated claim rather than suing directly under the underlying credit agreement. The Court held that the statutory reciprocity provision applied because of the relationship between the account stated claim and the underlying contract.
That is a useful warning against treating attorney’s fees as an automatic add-on to every debt.
The contract, the cause of action, and the applicable statute all matter.
Interest also has its own rules. Florida Statute § 55.03 establishes the framework for the interest rate applicable to judgments and provides for quarterly adjustments based on the statutory formula.
What If You Already Have a Judgment but Still Have Not Been Paid?
Then the legal problem has changed.
You are no longer trying to establish that the debtor owes the money. You are trying to enforce an established judgment.
That can involve:
- Judgment liens
- Garnishment
- Execution
- Discovery concerning assets
- Proceedings supplementary
- Negotiated payment arrangements
- Other enforcement mechanisms permitted by law
Florida Statute § 55.081 provides that a judgment generally cannot remain a lien on Florida real or personal property indefinitely; the statutory period is 20 years from entry of the judgment, subject to the statute’s provisions.
That does not mean a creditor should wait 19 years and see what happens.
It means Florida gives judgments a legal life that can extend well beyond the original lawsuit.
What If the Business Is Closing or Moving Assets?
This is where timing can become particularly important.
A creditor who has reason to believe that a debtor is transferring assets, shutting down operations, or reorganizing its affairs may need legal advice quickly.
Florida law contains procedures governing execution, judgment liens, proceedings supplementary, and other post-judgment remedies. The appropriate response depends on what is actually happening and what assets are involved.
A creditor should also avoid taking matters into its own hands.
Threatening customers, seizing property without legal authority, making false accusations, or attempting to bypass court procedures can create entirely new legal problems.
Collection is supposed to recover a debt.
It should not create another lawsuit.
How Long Do You Have to Collect a Business Debt in Florida?
There is no single limitations period for every business debt.
For example, Florida Statute § 95.11 generally provides a five-year limitations period for an action founded on a written instrument. Other claims can have different periods.
The nature of the obligation matters.
So does the date on which the particular cause of action accrued.
A creditor should identify the legal claim before assuming that an old invoice is still enforceable.
This is one reason an attorney should review an aging account before the business simply writes it off or sends another routine reminder.
A Business Debt Is Still a Business Problem
An unpaid $5,000 invoice can be irritating.
Some unpaid $50,000 invoice can disrupt payroll.
An unpaid $500,000 obligation can change whether a business can continue operating.
That is why debt collection should be approached in proportion to the amount at stake, the strength of the evidence, the debtor’s financial position, and the cost of pursuing the claim.
There is also a relationship question.
A company may want the money without destroying a valuable customer relationship. Another company may have reached the point where continuing to negotiate makes little economic sense.
Those are business decisions.
The legal job is to identify the available remedies and the consequences of using them.
When Should You Hire a Business Debt Collection Attorney?
Legal advice can be particularly useful when:
- The amount owed is substantial
- The debtor disputes the debt
- The contract contains complicated provisions
- A personal guaranty is involved
- Several businesses or individuals are connected to the transaction
- The debtor has stopped responding
- You suspect assets are being moved
- The debt is approaching a limitations deadline
- You need to file a lawsuit
- You already have a judgment
- You need to investigate enforcement options
- Bankruptcy has been threatened or filed
The earlier the legal analysis occurs, the more options may still be available.
That does not mean every $2,000 invoice needs a lawsuit.
Sometimes a well-supported demand gets the check.
There are cases where a payment agreement makes commercial sense.
Sometimes litigation is necessary.
And sometimes the debtor’s financial condition makes collecting the judgment itself the hardest part.
Frequently Asked Questions
How do I collect a business debt in Florida?
- Begin by documenting the debt, reviewing the contract and supporting records, and determining whether the debtor disputes the amount or the underlying obligation. Depending on the circumstances, collection may involve a demand for payment, negotiation, litigation, judgment, and post-judgment enforcement.
Can I sue a business for an unpaid invoice?
- Yes, when the facts support a legally recognized claim. The appropriate claim depends on the transaction, contract, records, and applicable Florida law.
Can I personally sue the owner of an LLC for the company’s debt?
- Not automatically. An LLC is a separate legal entity. Personal liability generally requires its own legal basis, such as a personal guaranty or another applicable theory.
Could I recover attorney’s fees in a business debt lawsuit?
- Possibly. A contract, statute, or other legal basis may authorize recovery. Florida Statute § 57.105(7) provides for reciprocal attorney’s fee rights in certain contract actions when the statutory requirements are satisfied.
Can I garnish a debtor’s bank account in Florida?
- Potentially. Florida law provides procedures for garnishment, including post-judgment garnishment under § 77.03. Exemptions, procedural requirements, and the identity of the account holder can affect whether garnishment is available.
What happens after I win a judgment?
- The creditor may have several enforcement options, including garnishment, execution, judgment liens, and proceedings supplementary, depending on the debtor’s assets and the circumstances.
How long do I have to sue for an unpaid business debt in Florida?
- It depends on the legal claim. Florida generally provides five years for actions founded on a written instrument, while other claims can have different limitations periods.
Is a judgment the same as getting paid?
- No. A judgment establishes the legal obligation, but the creditor may still need to use available enforcement procedures to collect the judgment.
Collecting Business Debts in Coral Springs and Broward County
A business in Coral Springs may sell services to another Broward County company, supply goods to customers across South Florida, or have contracts with companies anywhere in the country.
The location of the debtor, the terms of the contract, the applicable law, and the debtor’s assets can all affect the collection strategy.
For a Coral Springs business dealing with a significant unpaid account, the first useful step may be a review of the transaction itself: the contract, invoices, communications, payment history, and any documents showing what the debtor agreed to pay.
From there, the appropriate path may be a demand, negotiation, lawsuit, judgment enforcement, or some combination of those steps.
The important thing is to know which problem you actually have.
An unpaid invoice is one problem. A disputed contract is another. An unpaid judgment is a third.
Treating all three as “someone hasn’t paid us yet” is how a relatively straightforward collection matter can become unnecessarily expensive.
Talk With a Coral Springs Business Litigation Attorney
If your business is owed money by a customer, contractor, company, or other party, Reinfeld & Cabrera, P.A. can review the underlying transaction and discuss the legal options available for pursuing the debt.
That may mean evaluating the contract and records before a lawsuit is filed. It may mean negotiating payment. It may mean litigating the claim. And if you already have a judgment, the analysis may shift toward enforcement.
The right approach depends on the debt, the evidence, the debtor, and the remedies available under Florida law.
Contact Reinfeld & Cabrera, P.A. in Coral Springs to discuss your business debt collection matter.
This article provides general information about Florida business debt collection and is not a substitute for legal advice concerning a particular debt, contract, lawsuit, or judgm