Blog 2: Five Signs It’s Time To Hand Over The Debt

Contractors are no strangers to overdue invoices. What many don’t realize is that waiting too long to escalate those unpaid accounts often means losing more than money – you lose momentum, leverage, and sometimes, your legal rights.

Most contractors think collections are only for accounts that have gone completely cold. They imagine collections as the last stop – a necessary evil after every other effort fails. But in truth, effective collections start earlier. The trick is knowing when the balance shifts, when the risk of waiting outweighs the hope of being paid.

At Minnesota Construction Law Services, we’ve worked with hundreds of contractors across Minnesota. Here are five clear signs it’s time to stop chasing the invoice yourself and let someone else do the heavy lifting:

1. It’s been more than 75 days since invoicing.

Time is a killer when it comes to collecting unpaid invoices. Research shows that the likelihood of full recovery drops drastically after 30, 60, and 90 days. At 75 days, the customer either can’t pay or has chosen not to prioritize your invoice.

In addition, Minnesota mechanics’ lien deadlines don’t wait. If you miss your 120-day window to file a lien from the last day of labor or material supplied, you may have no security interest at all. Don’t let a delay erase your strongest tool.

2. You’ve already sent multiple reminders.

A couple of follow-ups is professional. A dozen is desperation. If you’ve sent two or more clear, written reminders with no meaningful response, the problem isn’t miscommunication. It’s avoidance.

By continuing to chase the money yourself, you’re telling the customer they can keep delaying without consequence. That silence isn’t random – it’s strategy. And it works, until you change yours.

3. You’re spending more time and energy than it’s worth.

Every phone call, every email, every calendar reminder to “follow up one more time” adds up. That mental clutter slows down your business. It’s time you could be spending managing projects, closing new jobs, or building real revenue.

The longer you dwell on one bad invoice, the more it steals from your future work.

4. The delay is affecting your cash flow.

It’s one thing to carry a late invoice. It’s another to start dipping into other job deposits or delaying payments to your own subs and suppliers because someone else isn’t paying you. Now you’re not just chasing money – you’re subsidizing your customer.

This is where small businesses start to collapse under slow bleed. You don’t need that weight. Get it off your books and onto ours.

5. You’re unsure about your lien rights or legal options.

Uncertainty is a red flag. If you’re not tracking lien deadlines, unsure about whether your pre-lien notices were served correctly, or don’t know if your contract has a collections clause—you’re exposed.

When we take over a debt, the first thing we do is evaluate your position. We check documentation, timelines, and options for enforcement. In many cases, we identify leverage you didn’t realize you had.

You’re Not “Giving Up” – You’re Getting Smart

Contractors often think handing over a debt means surrender. That they’re throwing in the towel or admitting defeat.

But here’s the truth: letting a legal professional step in isn’t weakness – it’s leadership. You’re saying your time is better spent running the business, not chasing dead weight.

We’re not talking about burning bridges or making threats. We’re talking about a respectful, professional, and legally grounded demand that gets results – and protects your rights in the process.

And because we include collection expense recovery clauses in our client contracts, there’s a good chance your customer ends up paying our bill, too.

Don’t wait until the job is a total loss. The earlier you act, the more leverage you have – and the better your odds of full recovery.

Coming Up Next:
How Long Should I Wait Before Escalating?

We’ll break down a simple timeline for internal collections and help you recognize when the balance shifts from friendly follow-up to legal action.