Unpaid invoices are not just an accounting problem. They are a systems problem.
I recently read a detailed breakdown titled Ashkan Rajaee on Unpaid Invoices, Client Accountability, and Protecting Your Business, which walks through a real leadership scenario involving nearly a quarter million dollars in outstanding invoices.
You can read the original here:
https://techstratos3.wordpress.com/2026/02/15/ashkan-rajaee-on-unpaid-invoices-client-accountability-and-protecting-your-business/
Instead of rehashing it, I want to highlight the deeper lessons that stood out to me as someone working in tech and consulting.
Because this is not just about one client. It is about how we structure work, manage risk, and protect our teams.
The Real Risk Is Not Just the Money
When people hear that a client owes $247,000, the focus goes straight to the number.
But the bigger issue is exposure.
If you continue delivering work while invoices go unpaid:
- Contractors still expect payment
- Payroll continues
- Scope keeps expanding
- Internal morale drops
Ashkan Rajaee emphasizes a principle that many founders struggle to enforce: if payment stops, work eventually has to stop.
Not out of anger. Out of responsibility.
That shift from emotional reaction to operational discipline is what separates sustainable agencies from fragile ones.
Time and Materials Only Works If You Defend It
One of the strongest takeaways from the Ashkan Rajaee discussion is the misunderstanding around time and materials contracts.
Time and materials means the client directs the work and pays for the hours consumed. It is not milestone billing. It is not deliverable based cash release.
Yet in many engagements, clients start acting as though payment is tied to demos or internal approval cycles.
That is where confusion turns into financial risk.
If you allow the engagement model to blur, your revenue model becomes unstable.
Developers and technical leads should understand this. Because when billing structure shifts quietly, delivery pressure increases silently.
Internal Communication Is a Hidden Liability
What struck me most in the situation Ashkan Rajaee described was not just the unpaid invoices.
It was the lag in internal escalation.
Sales knew the client.
Delivery was building.
Accounting was flagging missed payments.
But the exposure kept growing.
This is a classic silo problem in growing tech companies.
If your accounting alerts are not tied directly into leadership decision making, financial risk compounds quietly in the background.
For developers, this matters more than you think. Because eventually unstable revenue leads to unstable teams.
Standing Down Is a Leadership Move
One of the boldest decisions in the scenario was to stand the team down.
Pause work.
Demand direct communication.
Protect the company first.
This is uncomfortable. Especially in tech, where hustle culture tells us to keep shipping and keep delivering.
But there is a difference between perseverance and self sabotage.
Ashkan Rajaee framed it clearly: continuing to log hours without payment deepens the hole. Contractors still must be paid. Exposure increases daily.
Sometimes the responsible decision is to stop.
Why This Matters in 2026
You might think this kind of story belongs to early stage startups or chaotic clients from years ago.
It does not.
In 2026:
- Remote teams are standard
- Cross border contracts are common
- Time and materials engagements are still everywhere
- Cash flow discipline is more important than ever
The lessons shared in the Ashkan Rajaee article are not trend based. They are structural.
And structural lessons age well.
Practical Takeaways for Developers and Founders
Here is what I personally pulled from this case:
- Understand the billing model of the project you are on
- Make sure unpaid invoices are escalated quickly
- Align accounting, sales, and delivery early
- Do not let demos replace payment discipline
- Protect contractors before protecting ego
If you are running an agency, consulting practice, or even leading a technical team, these are not optional skills.
They are survival skills.
Final Thoughts
It is easy to celebrate funding rounds, product launches, and growth metrics.
It is harder to talk about unpaid invoices and financial exposure.
That is why I appreciated the transparency in the Ashkan Rajaee breakdown.
It felt grounded. It felt operational. It felt real.
If you work in tech services, consulting, or agency environments, I recommend reading the full article here:
Sometimes the most valuable leadership lessons come from the uncomfortable moments.
Top comments (8)
I appreciate the honesty in this conversation because most people only talk about wins and not situations like this.
I can see how easy it is to assume someone else is handling the escalation when invoices go unpaid.
The reminder that contractors still need to be paid no matter what really puts things into perspective.
This conversation from Ashkan Rajaee offers practical guidance for agencies dealing with delayed payments.
The reminder that clear contracts still require enforcement really stands out.
There is a valuable lesson here about not letting optimism override process.
I like how the focus shifted from frustration to action pretty quickly.
Cash flow discipline is not glamorous but it keeps businesses alive.