Small Claims Court limit R30,000: how to recover an unpaid invoice

From 1 August 2026 the Small Claims Court can hear claims of up to R30,000, up from R20,000. That covers many unpaid invoices, and neither side is allowed a lawyer. One catch matters for tradespeople: only an individual can bring the claim. A company cannot sue there, though it can be sued.

On this page: the new limit · can you use it? · the steps · letter of demand template · the hearing and after · what to bring · is it worth it? · questions

The new limit

The government confirmed on 23 July 2026 that the monetary limit rose from R20,000 to R30,000 on 1 August 2026, the first change in seven years. Law-firm commentary puts the Gazette reference at Government Notice 7717 of 20 July 2026. Under the Small Claims Courts Act 61 of 1984 the figure is set by the Minister by notice, which is why it can change without a new law. The previous R20,000 applied from 1 April 2019.

• Interest and costs are not counted. A claim for R29,000 plus interest still fits.
• Over the limit? You can abandon the part above R30,000 and claim the rest, but the abandoned part is gone for good.
• No splitting. You cannot cut one debt into pieces to get under the limit.

Can you use it?

Check each of these before you spend time on it.

1. You are a natural person. Section 7 says only a natural person may institute an action, and a juristic person can only be a defendant. A sole proprietor or freelancer qualifies. A (Pty) Ltd cannot sue here. If you are unsure how your business is set up, ask the clerk.
2. The debtor can be sued there. Individuals and companies can be defendants. The State cannot.
3. The right court. File where the debtor lives, works or carries on business, or where the whole cause of action arose.
4. The claim fits. It is R30,000 or less, and it is not one of the matters the court cannot hear, such as divorce, wills, interdicts or defamation. A claim that depends on a debt ceded to you also cannot be brought.

One rule catches traders out. While a claim arising from your business is waiting for judgment, you cannot issue a summons for any other claim arising from that business (section 29(1)(b)). If one client owes you for several jobs, ask the clerk about putting them in one summons.

The steps

1. Gather your paperwork. The accepted quote, the invoice, proof the work was done and any messages about payment.
2. Send a written letter of demand. It must be delivered by hand or by registered post, and the debtor must have at least 14 days from receiving it to pay. Some guides say 14 working days, so three weeks is safer. Keep proof of delivery: a signed copy if you hand it over, or an affidavit saying when and to whom if nobody will sign, or the registered-post slip.
3. Go to the clerk. Take the letter, proof of delivery, your invoice and contract or quote, and the debtor's full name and address. The Small Claims Court sits at a magistrate's court. The clerk helps you free of charge, checks that you are a natural person, sets the hearing date and issues the summons.
4. Serve the summons. You serve it personally on the debtor, or hand it to the messenger of court (the sheriff). Costs the court can award are limited to court fees, the summons fee and the messenger's fees. Keep the proof of service, because the court will not hear the case without it.
5. Attend the hearing. In person, with your documents. No lawyer may represent either side.

Letter of demand template

Keep it to facts and the amount. Adapt it to your job. The Department of Justice also has a standard form, J993, which the clerk can give you.

LETTER OF DEMAND

[Your full name]
[Your address, phone and email]
[Date]

To: [Debtor's full name]
[Debtor's address]

Delivered by hand / registered post

Re: Unpaid invoice [number] dated [date]

1. On [date] you agreed to pay R[amount] for [what you supplied].
   I completed the work / delivered the goods on [date].
2. Invoice [number] for R[amount] was sent to you on [date].
   It has not been paid. [Any payments received: R[amount] on [date].]
3. The amount outstanding is R[amount].
4. Please pay R[amount] into the account below within 14 days
   of receiving this letter.
   [Bank], account [number], branch [code], reference [invoice number]
5. If you do not pay, I will ask the clerk of the Small Claims Court
   at [court] to issue a summons against you for this amount.

Yours faithfully
[Name]

The hearing, and getting paid after

Hearings are informal. A commissioner, who is an attorney, advocate, law academic or magistrate serving without pay, asks most of the questions. The debtor can settle, defend, counterclaim or simply turn up. If they do not come, the court can give judgment in your favour, or decide the evidence is not enough.

The judgment is final and cannot be appealed, only reviewed on limited grounds. The debtor pays you directly. If they say they cannot pay at once, the court can look at their finances and order payment in instalments. If they have not paid within 10 days, you can apply to the clerk with an affidavit showing what is owed, and the judgment can then be enforced through the magistrate's court, including by warrant of execution.

What to bring

The commissioner decides what weight to give each document, but these are what most claims rest on:

• The quote, and proof the client accepted it. Zuvo records the name the client typed and when, if they accepted online.
• The invoice, with its number, date, amount and your banking details.
• Your letter of demand and proof of delivery.
• Reminders you sent. Zuvo keeps a log of the reminders it sent for each invoice, and shows when a client opened an invoice.
• Photos, messages and anything showing the work was finished.

Is it worth it?

Think about the amount against your time, the cost of serving the summons, and whether the debtor can actually pay. Judgment does not guarantee payment, though the court can set instalments. For most small debts, a clear reminder that says what happens next settles the matter first. A polite sequence before the letter of demand, with the invoice, how to pay and a firm last notice, often does it.

Questions people ask

What is the Small Claims Court limit in South Africa?

R30,000 from 1 August 2026, up from R20,000. The Act leaves the figure to the Minister, who sets it by notice in the Government Gazette. Interest and costs are not counted when working out whether your claim fits.

Can my company or close corporation sue in the Small Claims Court?

No. The Act says only a natural person may start an action, and a juristic person such as a company can only be sued there. A sole proprietor is a natural person. If you are unsure how your business is set up, ask the clerk before you start.

Do I need a lawyer?

No, and you are not allowed one at the hearing. Both sides appear in person and are not represented. A company that is sued is represented by a director or other officer. You may take advice beforehand.

How long must I wait after sending the letter of demand?

The Act says the debtor must have at least 14 days from the date they receive it. Some guides say 14 working days, so allowing three weeks from the date of delivery removes any argument.

What does the Small Claims Court cost?

Costs the court can award are limited to court fees, the prescribed summons fee and the messenger of court's fees. The clerk helps you free of charge. I could not confirm the current summons fee from an official source, so ask the clerk.

Can I appeal if I lose?

No. The judgment is final and no appeal lies from it. It can be taken on review in the High Court only on limited grounds, which usually needs an attorney.

Related: How to follow up on a late invoice · Can you charge more than your quote? · VAT invoice requirements · interest on overdue invoices · Client statements of account

Sources read for this guide: the Small Claims Courts Act 61 of 1984 (a copy dated May 2025, so check the amount by the current notice), the government's announcement of the R30,000 limit, Moonstone's summary and Legal Aid South Africa's guide. General information, not legal advice. Ask the clerk of your local Small Claims Court or an attorney about your own claim.