View Full Version : What to do if a client won't pay an invoice?
monkey_tennis
24th May 2009, 21:59
We did some work for a client 3 months ago and billed them immediately afterward.
After sending numerous invoices via email we received no payment, so sent one via recorded delivery (it arrived safely). Once again no payment, and no answers to phone calls either - I'm led to assume that the client is noticing it's us calling and ignoring it.
What's the next step? The invoice is only for £50, but as we are a new business it's a very important amount of money for us, and we did put 110% into her project, and feel quite cheated.
ethical PR
24th May 2009, 22:09
Did you agree payment terms with the client? or provide them with a quote or estimate?
I would send them a letter reminding them of the terms under which you agreed payment and giving them seven further days before seeking to pursue the claim in the courts.
If you dont receive payment within seven days, you can take it to the small claims court and apply online. If the judgement goes your way, you will get court case costs, interest and your claim.
For the future, I woud suggest asking for part or full payment up front.
Small claims court...if that doesn't work send the boys round...lol only kidding I dont advocate that really :p
monkey_tennis
24th May 2009, 23:28
I am filling in an HMCS money claim online, and upon asking if I wanted to reserve the right to claim interest was presented with the following:
Since you have indicated that you wish to claim interest on the money the defendant owes you, you must include the following text in the particulars of your claim:
The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% a year from {date when the money became owed to you} to {the date you are issuing the claim} of £ {put the amount} and also interest at the same rate up to the date of judgment or earlier payment at a daily rate of {enter the daily rate of interest}.
Could I charge a 10% daily interest rate? Making it £5 a day until the claim is paid?
Also, will the defendant pay the £25.00 court costs?
No I dont think so, because its a section of the County Courts Act I would stick to that - plus it wouldn't make sense if you stuck 10% in the end section of the sentence as it says interest at the same rate rate...so it should also be 8%.
However worth checking if it can be charged at the current late payment charge rate which is the reference rate + eight per cent.
Edward Moss
25th May 2009, 07:27
http://www.thomashiggins.com/
Let these guys do it for you, takes away all the stress from yourselves.
The £2 letter before action usually works.
SusanP
25th May 2009, 08:56
A phone call and a chat is the best way to sort this out. If you think the client recognises your number and thus avoids answering, ring from another phone. If it's an answerphone just leave your number and ask them to call you back - they'll think you're a potential client, so will probably call.
When you finally speak to someone, say "I did some work for you three months ago, but you haven't responded to my invoice. I'm trying to find out if you were dissatisfied with my work in some way". Chances are they'll say "No" and will probably tell you that their clients don't pay them for months and they've got financial problems of their own. At least you'll be able to put your point of view and if you remain polite, and especially if they feel they may need your services in the future, they may pay up - as you say, it's a fairly small sum.
Fuzzy
25th May 2009, 08:58
I never found the small claims any good:( and for fifty quid I wouldn't bother, but I would def ask for part payment up front and part on completion, I would expect to pay that no problem at all:)
After sending numerous invoices via email we received no payment, so sent one via recorded delivery (it arrived safely). Once again no payment, and no answers to phone calls either - I'm led to assume that the client is noticing it's us calling and ignoring it.
Always consider that they might not be ignoring you but just not there for some reason. health maybe.
You need to establish contact first.
GRDCredit
27th May 2009, 18:07
Always consider that they might not be ignoring you but just not there for some reason. health maybe.
You need to establish contact first.
True - with due respect to the OP if they are avoiding a creditor who they only owe £50 there is no hope!