Late payment by a company?

19 replies
Found 4th May 2011
I'm a little unsure of what to do here,

Myself and a friend did our first major freelance work for a company, the invoices were given to the company and it was stated that payment was to be made within 28 days of the invoice date. The payments are now 45 days since the invoice date.

What would you do in this situation as the company is being of little help at all.

ideas?

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19 Comments

can you not send them a reminder letter and say something like they have 7days from the date of the letter to pay or you will seek legal advice. i dont know much about running a business but id probably do something like that .

Banned

what did the original contract say about payment?
anyway just send them a final demand with 7 days to pay (also doubling as a letter before action) then slap it into court

Things to bear in mind....
How much was it
Do you want to do any work for them again

Original Poster

colinsunderland

what did the original contract say about payment?anyway just send them a … what did the original contract say about payment?anyway just send them a final demand with 7 days to pay (also doubling as a letter before action) then slap it into courtThings to bear in mind....How much was it Do you want to do any work for them again



i'll give this a go with the 7 day letter, the sum was for over 2k and if the opportunity for work came up again i would work for them so would like to try and keep on good terms.

I get this all the time - keep bugging them - phone them every day and get a date that you will be paid. If they don't play ball threaten to charge them interest (you can charge 8% above base rate). Also, as the company haven't fullfilled their part of the contract with you, you retain the copyright for any work you carried out. I'm not sure how this applies to you, but in my industry (I'm a TV editor) it has been known for editors to contact the broadcaster (say the BBC or C4) and point out that the production company hasn't paid, and so don't own the full copyright to the show - theirfore the broadcaster isn't able to broadcast the show. They then phone ythe production company and this scares the crap out of them - payment geberally happens within a few minutes then.

Hope this helps.

I'm a painter and decorator. (sole trader). I had a company do this to me so wat I did was send a reminder stating they had 7 days to pay then there would be a sercharge of £20 pound per day plus vat per day aswell .. A cheque arived 3 days later in the post.

Give them 14 days to pay, tel them from then on you will be charging 10.00 per day interest. Tell them each piece of corespondance recieved will be looked at with an administration charge of £50,00
phone calls recieved or made from that date will be charged the same. Any further letters/ e=mails will be charges at 100.00. Make sure you have proof of their recieving said mail.
I did this with BT owing me £25.00, they paid me over £500. because of ignorance. All it took was a phone call from CAB and they folded.
Good luck

Banned

To be fair if the company was called "Focus" you might have a long wait

If you don't want the hastle of chasing the money youself you could use the service of a Invoice Factoring Company.

Here's how it works: You send all your invoices to the Factoring Company. They pay you less their 'fee'. They then chase your client for the full amount. If the client won't pay or can't pay it's now the Factoring Company that has the problem of getting hold of their money.

Overview:
en.wikipedia.org/wik…%29

Ive found that just calling them regularly, asking for the full name of each person you talk to and keeping it friendly but warning that you may have to add interest if payment isnt received within so many days works

Supermod

OP - I have sent you a PM.

If it is a big company, they probably pay at the end of the month following the invoice, so if your invoice was at the start of April, they will process it at the end of May - regardless of what you put as your payment conditions.

Have you spoken to your contact there (the person who booked the work with you) about it, what did they say? You may have better luck asking them for a contact in the Accounts dept, but would be interested to hear what they have already said about it as you have already been in touch with them.

Banned

Boxer

Give them 14 days to pay, tel them from then on you will be charging … Give them 14 days to pay, tel them from then on you will be charging 10.00 per day interest. Tell them each piece of corespondance recieved will be looked at with an administration charge of £50,00phone calls recieved or made from that date will be charged the same. Any further letters/ e=mails will be charges at 100.00. Make sure you have proof of their recieving said mail.I did this with BT owing me £25.00, they paid me over £500. because of ignorance. All it took was a phone call from CAB and they folded.Good luck



That must be one of the most stupid bits of advice ever given on here - they would just laugh at you if you did that and probably delay paying even longer so they could laugh at you further.

As for your example with BT, you were very very lucky if you got that, no court would have ordered it.

bear in mind there was like 8 school days in the whole of april

as short as 6 in some areas

with may holidays and then polling day on may 5th alot of holidays

be patient...

btw you havent mentioned if you took some initial deposit or was the full payment on completion?

contact them but its better to send a royal mail recorded first class letter and then a folow up call. do this on monday and you will probably get payment on friday

Supermod

breeville

bear in mind there was like 8 school days in the whole of aprilas short … bear in mind there was like 8 school days in the whole of aprilas short as 6 in some areaswith may holidays and then polling day on may 5th alot of holidaysbe patient...btw you havent mentioned if you took some initial deposit or was the full payment on completion?contact them but its better to send a royal mail recorded first class letter and then a folow up call. do this on monday and you will probably get payment on friday



Have I missed something? What difference does school days make? 45 - 28 = 17. 17 days overdue.

not to scare you Op but my old boss used to do stuff like this run up huge amounts with advertising companies, or the website builder , radio stations , he'd pay them the deposits and wait for the legal action letters before paying another small amount, in the end they went bust ( again)

personally i'd do as someone has already mentioned send another invoice with a 7 working day notice, send it recorded delivery, 95% of businesses will pay up as soon as the second invoice is received

Banned

breeville

bear in mind there was like 8 school days in the whole of aprilas short … bear in mind there was like 8 school days in the whole of aprilas short as 6 in some areaswith may holidays and then polling day on may 5th alot of holidaysbe patient...btw you havent mentioned if you took some initial deposit or was the full payment on completion?contact them but its better to send a royal mail recorded first class letter and then a folow up call. do this on monday and you will probably get payment on friday



was it a school he did the work for?

Original Poster

profet

I get this all the time - keep bugging them - phone them every day and … I get this all the time - keep bugging them - phone them every day and get a date that you will be paid. If they don't play ball threaten to charge them interest (you can charge 8% above base rate). Also, as the company haven't fullfilled their part of the contract with you, you retain the copyright for any work you carried out. I'm not sure how this applies to you, but in my industry (I'm a TV editor) it has been known for editors to contact the broadcaster (say the BBC or C4) and point out that the production company hasn't paid, and so don't own the full copyright to the show - theirfore the broadcaster isn't able to broadcast the show. They then phone ythe production company and this scares the crap out of them - payment geberally happens within a few minutes then.Hope this helps.



Thank you it was tv based work.

It was also payment on completion of the project, no deposit.

I'll send them another invoice giving them 7 days, and threaten the 8% if it's not payed in 7 days.

Cheers guys

Supermod

lastlaststar

Thank you it was tv based work. It was also payment on completion of the … Thank you it was tv based work. It was also payment on completion of the project, no deposit. I'll send them another invoice giving them 7 days, and threaten the 8% if it's not payed in 7 days.Cheers guys



I have a Letter before Action that I can provide.

Interest is payable under Section 69 of the County Courts Act 1984. You may also be able to claim a fixed amount of compensation (£70) under Late Payment of Commercial Debts (Interest) Act 1998 and Late Payment of Commercial Debts Regulations 2002. That is obviously only on the basis of you being a commercial entity.

[/quote]
Thank you it was tv based work.

It was also payment on completion of the project, no deposit.

I'll send them another invoice giving them 7 days, and threaten the 8% if it's not payed in 7 days.

Cheers guys[/quote]


Have you already actually called them about it though? What did they say?

Edited by: "Laffy42" 5th May 2011
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