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Art

  • Posts: 3688
Re: clients who fail to pay
« Reply #20 on: October 29, 2007, 10:18:37 pm »
Hey guys

One company is owing me 4months invoice now what do  do? Even though there is a £100 charge for each day that an invoice remained in areas ( that is after the 28 days agreed and signed). The amount is running into £10,000. I am sending them a letter to say I will be sending their details to a credit collection agency if they do not pay in 14days.

What's your take on this?



What type of work was it?A bit more info ie have they given you a reason for not paying?

Arthur

Justcleaning

  • Posts: 19
Re: clients who fail to pay
« Reply #21 on: October 29, 2007, 10:26:32 pm »
It was cleaning. When I sent the invoice initially, I was told that the company director will like to speak with me before payment is made. I have called several times to speak with him but never was able to talk to him. So I have no idea why they have refused to pay. in th 4 months of wrking with them, there has been one complain of one of the bins been left. So I am ure it's nothing to do with our services.

I don't know if sending their etail to the credit collection agency will make a difference or just asking for through HMCS money claim online.

Re: clients who fail to pay
« Reply #22 on: October 29, 2007, 10:34:40 pm »
Aside from any late-payment charges that you've added, how much was the original bill for? How much will it cost you to go down the avenues that you mention?

Justcleaning

  • Posts: 19
Re: clients who fail to pay
« Reply #23 on: October 29, 2007, 10:38:17 pm »
£30 through money claim online. The others I have not looked at cos I have began to look into doing more than calling them.

Re: clients who fail to pay
« Reply #24 on: October 29, 2007, 10:41:17 pm »
How much did you charge for the work?

steve doyle

  • Posts: 287
Re: clients who fail to pay
« Reply #25 on: October 30, 2007, 12:42:29 am »
I would think having the £100 per day late payment charge would cause more problems than it would solve.

1. Makes you look like a loan shark
2. Would get your business a reputation
3. would scare potential customers
4. More likely to get customers falsly accusing of poor work to avoid cost because they forgot to pay on time.
5. If they accept the terms they may well do so because they have no intention of paying anything anyway!
6. probably un enforcable.
7. If you were ever to charge the £100's you would lose them as a customer.

I fully understand why you have done it and sympathise with the problem of late payments, after all its your money!!!!
Other people on here use a percentage discount for prompt payment and i think it may work for you also.

As for speaking to the director it sounds like you mean via telephone? either way I would at this stage get down to the office and if he cant see me there and then, "no problem, i will wait!". The account needs settling and firm direct action to asses whether or not they intend to pay would be the first thing i would do. There is no real need to threaten with credit collection companies as i dont think it's a threat taken seriously by people (everyone makes this threat). I would just explain what your going to do (small claims court), send final demand to the letting agency stating court action will be pursued after 7 days of non payment (keeping a copy). Then if they dont settle within 7 days just file the court form and forget about it, once they recieve the court claim they will pay it (usually!!).

Remember to be firm and direct, dont get into a debate (nothing to debate, they owe the money), put any communication in writing keeping copies and just get on with it. Once they see you a clear minded, determined and business like, you put your self in a good position to succeed.

best of luck
steve


Justcleaning

  • Posts: 19
Re: clients who fail to pay
« Reply #26 on: October 30, 2007, 11:32:08 am »
thanks

*Chris Browne

  • Posts: 863
Re: clients who fail to pay
« Reply #27 on: October 30, 2007, 12:09:15 pm »
Have you actually gone in and met the person in charge, ..with that amount of money owing i would be camped outside his door till he gave me meeting.

Chris

Justcleaning

  • Posts: 19
Re: clients who fail to pay
« Reply #28 on: October 30, 2007, 01:18:49 pm »
Have you actually gone in and met the person in charge, ..with that amount of money owing i would be camped outside his door till he gave me meeting.

Chris
I have been there several times but no change.