Unpaid invoice

[fattony]

Back in October 2010 I did some work for a building company which is run by a friend (first mistake working for a friend)

The client has knocked his final bill basically a number of extras were verbally agreed and when final invoice landed he refused to pay it, subsequently my friend now cannot afford to pay for my services, I've been patient but as people have said business is black and white.

What is the procedure I should follow, Kashflow have 3 letters which I could send but I just wanted to check the procedure I should follow.

[IANL]

1 polite letter detailing the amounts owed and request for payment with 7 days
2 7 days later despite previous letter you have still not received payment and you will have to consider using more formal collection procedures if not paid within the net 7 days
3 despite previous numerous requests payment has still not been received and if cleared payment is not made within the next 7 days you will start legal proceedings for the recovery of the debt ( this letter headed NOTICE BEFORE ACTION)

You could call the day before the 7 days and see if they will be making payment if not start proceeding straight use local court or money claim online. You haven't mentioned the amount or if your friend is a sole trader or Ltd company. Can he afford to pay.

These are the formal ways

There will always be the communication you have with him as a friend.

[mrhubby]

Letter is good way to start and also gives you proof that you have done what you can to communicate.

Good luck

[CompanyRescue]

What steps, if any, is your friend taking to recover the debt from his client? I'm guessing that, as a friend, he'll want to pay you if/when he can! Depends how 'good' a friend he is, as to whether or not you want to 'fall out' with him by ultimately taking legal action! Is there any way you can assist/advise him on collecting the debt from his client? Can some agreement be reached with the client.

The steps advised by others are correct (ie a series of letters) but if your friend hasn't got the money to pay you - he hasn't got the money to pay you! Can you come to some arrangement with him to take staged payments?

[E Storey]

I would send a polite letter then, since you are dealing with a "friend" outsource the rest to a credit collection agency.

that way you can play good cop to their bad cop.

[fattony]

Well I called him the other day and he is chasing the client I told him to seek advise and take the client to court if he refuses to pay the invoice, he said he'll do his best as its been a while, think I'll give him a few more weeks, I offered stage payments a while back but had £0

[Geoff T]

OP - in my view the best chance you have of getting paid (and retaining a friend) is by talking to Charlie Paynter (http://www.ukbusinessforums.co.uk/forums/member.php?u=67976) - member here...

I know him, and have met him and he's the expert you need for this... this is right up his street, honestly!

I reckon he'll be the best person to talk to, to help you (and your friend) to resolve the core issue...

[petergorman]

When you have gone through the court proceedings you will still have no guarantee of payment as we are still waiting despite instructing a bailiff over eight months ago