Invoice Advice

[NJ123]

Hi all,

Long time reader looking for a little bit of advice, if possible.

We are having awful issues collecting payment of an invoice, which is to the value of over £7000.00.

We are a service based company and the debt, which had initial payment terms of 30 days, has now progressed to over 45 days.

From my time in business, i've become aware of clients(?!..free loaders!) taking liberties with payment terms - the 45 days isn't the concern as I usually project our figures taking in to account 60 day terms.

The issue is that the customer has stopped taking calls, is refusing to take calls and not answering e-mails. The client was always receptive during trying to bring them on board and we've always had a good relationship. I just don't know where to go from here and, to be honest, it's starting to grind me down a little bit. It's a new business (8 months) and I can't take this sort of hit with a mortgage.

Can anyone offer advice on the best way to pursue this to collect the debt?

They're a limited company, we're a partnership & we do have all signed contracts along with Terms & Conditions - their credit rating wasn't great, but wasn't the worst when we initially undertook the work.

I get the feeling it's going to be a case of taking legal advice, but if anyone can assist it would be much appreciated as I don't have great experience in this area.

Many thanks

 

[simon field]

Send them a recorded post 14 day letter before action, add late payment interest and then:

https://www.moneyclaim.gov.uk/web/mcol/welcome

Their response to receiving court papers should at least give you an idea of their intent.

Good luck.

 

[NJ123]

Send them a recorded post 14 day letter before action, add late payment interest and then:

Their response to receiving court papers should at least give you an idea of their intent.

Good luck.

Hi Simon,

Geoff at GRD Credit Control has arranged to assist on this one - very, very helpful chap should anyone be struggling with this sort of issue.

In terms of us, unfortunately it's not looking too good - the LTD company who owe aren't rated well and look to be having issues.

A naive mistake on our part - the golden rule, don't trust anyone in business.

Thanks for all who took time to read - please, please, please learn from our mistake.

 

[GRDCredit]

Thanks for the comment NJ123 and sorry I have not been able to help

The lesson to be learned by all reading this is check out your customers before you deal with them - it is quick, it is cheap and it can save a whole lot of heartache

 

[businessfunding]

I'm very sorry the outcome wasn't positive

if there is an overall message it is that 'I've met the bloke and I like him' really isn't a credit policy (for trade debt of loans)

Bad debt happens, but it can be managed.

 

[frenchparts]

This is what ruins it for genuine start ups who struggle to get credit accounts

We are 8 months old and our only credit acc is for 1000 everyone else is COD or pre payment when we ask why its because they have all been screwed over in the last few years mainly by new business's they say they may concider us after 12-18 months kf ordering from them