Late payment

[tsm106]

I have been very lucky to date, as I make it very clear to all clients that my payment is due upon receipt of my goods.
If, I have had a late payment, one gentle reminder has always done the trick in the past.
However, my latest client, was really happy with my work and asked me about paying my invoice whilst I was at her house. I told her that I would email it over to her which I did later that day.
This was over a week ago, and no payment has been made. I have sent her a gentle reminder, plus a ( textbook late payment ) reminder, but she has totally ignored both.
I have never had this before, and am not sure how to proceed from here. Obviously, I want the right balance between being fair and firm, but I am owed quite a lot of money on this,

 

[MOIC]

1. Send her another 'gentle' reminder.

2. If no response within 7 days . . .Send another reminder asking to acknowledge receipt of your last 2 requests.

3. If no response within 7 days . . .Send a 'firm' letter stating that you will find it necessary to take further action, if payment is not received within 5 days from the date of the letter.

4. If no response . . .Send a letter before action to be taken, offering the final opportunity to pay before court proceedings.

5. If no response . . . Small Claims Court procedure.

Could the person be on holiday? If so, allow a reasonable 14 days from the first letter to see if any acknowledgments are received.

Perhaps for new clients work on a Pro Forma basis.

Good luck!

 

[Ian J]

Telephone her and ask her when is the most convenient time to pop round and pick up a cheque

 

[MOIC]

Yep, that's the quickest and most direct way. . . . . . .

 

[obscure]

1. Send her another 'gentle' reminder.

I am afraid I don't see any value in sending another 'gentle reminder'. The first didn't work so no reason to think a second will. You are just delaying the issue. I would skip straight to a 'firm' letter stating that you will find it necessary to take further action, if payment is not received within 5 days from the date of the letter. Then move on to points 4 and 5 of MY Office In's post.

 

[Mark T Jones]

Telephone her and ask her when is the most convenient time to pop round and pick up a cheque

This. The strongest collection method by far is real life talking - preferably face to face

Caveat. Be sure that you can’t be construed as being physically threatening.

 

[bodgitt&scarperLTD]

It's only a week. How much money is it? I'll hazard a guess that it's a lot to you but probably not to her? Friendly phone call should do the trick, you'll probably walk away wondering why you were so worried.

The most annoying ones for me are when it's only a small amount, and the hassle of chasing is almost more than it's worth, but you can't not chase it!

 

[MOIC]

The first didn't work so no reason to think a second will.

It's holiday season, so perhaps allow for that in order to delay the push button for a week or so.

If it's a potential repeat customer, why ruin the relationship for the sake of 7/14 days.

The court will always look favorably if the Plaintiff has afforded ample opportunity to pay.

IMHO

 

[Owesdr]

I also think that it would be fair enough if you just give her a call and ask if there is any issues with service or payment and when she will be able to make payment of your invoice. By my opinion, it is always better to discuss issues in person, than to use court services

 

[Nochexman]

...However, my latest client, was really happy with my work and asked me about paying my invoice whilst I was at her house. I told her that I would email it over to her which I did later that day.
This was over a week ago, and no payment has been made. I have sent her a gentle reminder, plus a ( textbook late payment ) reminder, but she has totally ignored both.
I have never had this before, and am not sure how to proceed from here. Obviously, I want the right balance between being fair and firm, but I am owed quite a lot of money on this,

Would be interested to learn whether you have resolved this?

 

[Karllacey]

Like people say go for the softly softly approach first. There may well be a valid reason for none-payment.

1. Call
2. Call and Text / Reminder
3. Call / Text / Email Statement / Reminder

When it starts getting to the 30-day overdue mark then you need to highlight it further.

1. Send a firm 7 day reminder
2. Send a final reminder and make them aware that the next step would be legal action
3. Send a pre-action protocol letter in line with regulations October 2017 (30-days)
4. Issue legal proceedings via MCOL, pay the fee, prepare your evidence and wait for next instruction.

If it gets to court, you need to demonstrate that you have taken appropriate action to avoid it going to court. If you go with the big guns right from the start, it is highly likely you will get hammered by the courts for not exploring avenues beforehand.

If however she does make an offer to pay in part payments, you need to consider this carefully as if you ignore this and take it to court, then you are likely to be penalised again.