Oi - where's my money!! [Archive]

View Full Version : Oi - where's my money!!

David.Simmons

10th November 2009, 11:15

Hi all,

We have a situation where a client of ours who owes about £5,000 is not forthcoming with payment and wondered if anyone could offer advice on the tactics you use to get money out of difficult clients.

I have read about a “Statutory Demand” form which we can complete and send to them giving the company 21 days to clear the debt or we could issue a “Winding up Order” on the business – has anyone done this and if so was it successful?

I guess what I am really asking is what is the most convincing action that can be taken to scare a company into paying i.e. solicitors letter, court action etc.

Any advice or story of your experiences would be appreciated as fairly new to Credit Control and would be useful for future reference.

Dave

PhilWarman

10th November 2009, 11:39

There are some good credit guys on here (the 2 Geoff's) - they will have some good advice for you.

One stop shop

10th November 2009, 11:41

Hi , have sent you a PM ,, hope this helps

Davef

10th November 2009, 11:52

We use The Thomas Higgins Partnership who are business debt collection solicitors

Their letter before action (£2.95 plus vat) has worked on 98% of customers we have served these on

For the 2% it didn't work on we took court action to recover the debt and associated costs.

GRDCredit

10th November 2009, 12:01

There are some good credit guys on here (the 2 Geoff's) - they will have some good advice for you.

Thanks Phil (come on you Glovers!)
Hi all,

We have a situation where a client of ours who owes about £5,000 is not forthcoming with payment and wondered if anyone could offer advice on the tactics you use to get money out of difficult clients.

I have read about a “Statutory Demand” form which we can complete and send to them giving the company 21 days to clear the debt or we could issue a “Winding up Order” on the business – has anyone done this and if so was it successful?

I guess what I am really asking is what is the most convincing action that can be taken to scare a company into paying i.e. solicitors letter, court action etc.

Any advice or story of your experiences would be appreciated as fairly new to Credit Control and would be useful for future reference.

Dave

A lot depends on what you have done so far but I would suggest getting a third party involved (but I would wouldn't I!). Have they made any sort of offers/promises or are they just avoiding you?

The important thing with all these cases is to get a dialogue going - for example it is important to know what the problems are and if necessary structure a payment plan.

If all else fails then for that sort of value then a 7 day letter following by stat demand would be the course to take.

Ihave dropped you a PM

GRDCredit

10th November 2009, 12:03

GRDCredit

10th November 2009, 12:07

Sorry the other thing I should have said is do you know whether this is a case of can't pay or won't pay?

If you want to drop me a PM of the company name I am happy to do a credit check and see if there is any value in the company or shed loads of CCJs outstanding

David.Simmons

10th November 2009, 12:13

Hi all

Firstly, thanks for your very helpful responses.

My worry is that the debtor will do a phoenix as he runs several companies - he has represented himself as an individual in charge of a company.

Is there any way that I could issue the Statutory Demand against him personally as a real frightener as I reckon he has the personal cash to settle this debt OR would this just confuse things?

It would really hack me off as a small business to attend a creditors meeting where I turn up in my battered Toyota to see him arrive in a Merc or something - trust me, this has happened to me before!

GRDCredit

10th November 2009, 12:19

Is there any way that I could issue the Statutory Demand against him personally as a real frightener as I reckon he has the personal cash to settle this debt OR would this just confuse things?

Presumably all other paperwork/transactions have been carried out with him as a limited company? In which case issuing stat demand to him personally will have no effect (except costing you money!) To be honest if he has several companies he is unlikely to be frightened by anything you can throw at him.

GOing back to the credit control issue - how have you run up a debt of £5k with a 'dodgy' customer. I don't of course know what trade you are in but is this figure normal? What sort of checks did you do?

SaraR0112

10th November 2009, 12:23

Kara Grant

10th November 2009, 15:04

Maybe you could try a sheriff Officers letter. I've had quite a few successes with this tactic.

Geoff T

10th November 2009, 18:42

Maybe you could try a sheriff Officers letter. I've had quite a few successes with this tactic.

Just wondering Kara, is that not a "homeland" (sorry - meant "Scotland"!) thing? Please explain to the one in the cheap seat!

PS - OP, GRD knows his stuff! Pick his brain...sign him up...he'll get the job done...

For my money, I have to agree with GRD - (BIG surprise!:rolleyes:)

What steps have you taken so far?
Have you spoken to the "Merc driver"?
DON'T try and take action against the guy personally if you've been dealing - and invoicing - the Ltd company (without a Personal Guarantee - which I bet good money on you not having!)

Namesake you have some thanks to offer above - you get about a bit don't you!;)

Geoff T

10th November 2009, 18:43

Geoff from GRD is highly recommended

I would recommend running a credit check on them to see if they owe anyone else money before paying a solicitor or debt collector. If you want I can send you their Credit Check so that you can see the report for yourself and see where you stand

PS - Sara - forgot to mention...

PLEASE don't mention GRD and "debt collector" in the same post - you know how cranky he can be!!!:eek:;)