Non paying client advice please.

[smuuudge]

Hi everyone - having never been in this position i am somewhat following my nose on this one at the moment. Basically, client is not paying up, stating their client hasn't paid them. I do actually get on very well with my client and have known and worked for and with them over many years.

That said they are not paying and blaming their client which i do not agree with. It is now over 6 months overdue.

On top of that they appear to have had a Compulsory strike-off action in the last few months which has subsequently been discontinued, late filing, who knows? None the less it is all raising the alarm bells.

I have tried to be very patient and civil with communication to them to date but with little or no resolution coming from them other than 'our client has still not payed us' i find my patience is starting to wear thin.

I am looking at next steps and wonder what advice the forum might give?

 

[ADNattan]

It's difficult this one, and it's a situation I've been in myself.

Your choices are either giving them the benefit of the doubt that they'll pay you once their client's settled up and tightening your belt, or taking the next steps.

You need to ask whether potentially upsetting them and losing that relationship is worth more to you than getting the money they owe right now.

In my experience, I'm happy to give a few weeks' leeway with repeat clients, but they're only valuable to your business if they actually pay. Six months is definitely excessive, and I'd be looking at getting a solicitor's letter and accepting that I probably won't work with them again.

 

[Newchodge]

I don't understand how you can get on very well with a client who does not pay you, especially with the excuse that their client has not paid them. That is not a client, that is someone pursuing a hobby and it is not your problem if they do not have proper payment protocols in place. Act now, you probably should have acted 3 months ago. Send a letter before action, preferably drafted by a solicitor (Thomas Higgins?) and commence legal action on the day the deadline expires DO NOT ring them up and apologise for doing it.

 

[smuuudge]

My solicitor suggested a small claim on such a small amount, But as i understand it, even if i win, i may not get any of the owed money back. He suggested pursuing it myself, which i have, and will continue to do...is it worth sending a Statutory Demand as advised on the Gov website?

 

[Newchodge]

What's the amount?

 

[smuuudge]

£1300

 

[paulears]

Worth the filing fee, so just do it. Doesn't guarantee much, but at the very least they know you are serious, and don't forget that good client relations works both ways!

 

[STDFR33]

I bloody hate it when clients give this excuse. It's just BS.

You have a contract with them, not their client. They pay you within the agreed terms. Simple.

It's up to them to pursue their client and should have absolutely no bearing on you receiving the funds you are owed.

In future don't let this go on for six months.