Small claims court

Small claims procedures handle claims below a value threshold with simpler rules, lower fees and limited legal costs, so they are practical for unpaid invoices. Businesses can usually represent themselves.

Limits vary. In England and Wales, the small claims track takes claims up to £10,000; claims for unpaid invoices are usually started online. In the US, each state sets its own limit, from a few thousand dollars in some states to $25,000 in others, and some restrict how businesses may use the court. For cross-border claims in the EU, the European Small Claims Procedure covers claims up to €5,000.

A judgment is not the same as payment. If the customer still doesn’t pay, you need enforcement — bailiffs, attachment of bank accounts or similar — which is a further step with its own costs.