Stupid question, right? Surely anyone in business for long has experienced it - - but this is my first. I have an online toy/children's furniture store. Most of my business is pre-paid w/credit card via my site shopping cart, but since I get a lot of business (and large orders) from schools, daycares and museums, I also accepts POs. The product is shipped with payment expected in 30 days. Well, it finally happened - a daycare center that's failed to pay, doesn't answer emails and phone's disconnected. One of the references that was given is now having trouble collecting as well. So it seems pretty well established at this point that the buyer does not intend to pay.

I know nobody wants to give legal advice, but I'm just wondering if there are standard steps that one takes. Mine is a very small business - literally a "one man show", so I don't have attorneys or a lot of money to throw around. I heard that one could go to the courthouse and file a "breach of contract". I've tried to find more information on how that relates to a buyer-seller relationship where there is no signed contract, but haven't found anything. Does anyone know if this is correct? I appreciate any info/suggestions.