Outstanding Account Advice

[hunny]

Hi All,

Would appreciate any advice on the following situation.

We have a client that owes a relatively small amount of money (£500) and we have been chasing the payment in the usual way but not getting very far with it. Payment terms were 30 days and its now getting towards 90 days. We have done all the normal stuff, statements, numerous telephone calls & e mails, but getting nowhere with it, cannot even get through to accounts who are 'always out of the office'!

What should be the next step, I assume a letter, but who should that be addressed to and what should we include in it? Are there any legalities we should be aware of?

Just need to know the best way now of going about it and what options are available.

Any help would be great.

Thankyou

 

[ART Accounting]

Is our client a Ltd Co or sole trader/partnership?

Do you intend to do any further work with them after this is settled?

Do you have any form of engagement letter?

 

[hunny]

Hi Andrew,

Client is a Ltd Co.

Work carried out every 2 years for their insurance purposes.

We have e mail order confirmation from them.

Thanks

 

I have to put with the same sort of thing, and it's always the same customers! I usually send a letter via recorded delivery to their accounts payable reminding them of the payment terms, how many days they are overdue and then we usually give them 14 days to either call us with a payment date or to tell us if there is any dispute. Usually they pay up but if we don't hear a peep and they are still not taking calls etc then we pass it on to our solicitors.

 

[Jayser100]

There are lots of debt collection agencies who will write a formal letter to the client telling them to pay up or else - fee will only be around £10.00. I find this is usually enough to make them cough up.

If they play a game of bluff it is difficult to take matters further legally, because the costs of trying to recover such a small amount of money make it prohibitive. However, debt collectors will be happy to follow up their letter with phone calls and other chasing for a no recovery, no fee basis. Their fees are usually only around 10 - 15% so you will lose some money but it's better to recover £350 - £400 than nothing at all, I am sure you agree?

I use a company called STA Graydon in Maidstone and I am happy to recommend them as they do a superb job for me. They are also very good at recovering international debt which is handy in my case because I have quite a lot of overseas trade clients who buy my eyewear.

Anyhow, don't write yourself, get a debt collector to do it. Once they know you are that serious they will probably cough up, apologise and tell you they weren't trying to avoid paying, honest!

 

[hunny]

Thank you Jayser100

We have now been paid... so success on this one!! But will keep a note of your recommendation, always good to know of a decent company! Thank you

 

[Steve Thornbury]

Too late for me, I know, but it's nice to have a couple of options!

We are no win no fee so there will be no money up front, like the responder stated.

Steve

 

[hunny]

Ok, thanks Steve... I will PM you with our contact details and perhaps you could send over any info etc, we can then keep you in mind for future reference.

 

[Geoff T]

Ok, thanks Steve... I will PM you with our contact details and perhaps you could send over any info etc, we can then keep you in mind for future reference.

OP- Steve works in my arena, and I'll be happy to recommend the fella if it helps set your mind at ease...

 

[hunny]

Thank you Geoff, much appreciated.

 

[Geoff T]

my pleasure...

 

[cpcm credit management]

Without wishing to put a dampener on things, will Graydon take on one £500 account at 10%? Im not so sure and my experience (at a distance i will admit) is a bit mixed

I would be very careful about some of these agencies and would simply send a letter detailing that costs penalties and interest will be charged if payment is not received by a date and small claims court proceedings are used

Ill happily draft something for you for free if you Pm me

http://cpcmcredit.wordpress.com/

 

[Geoff T]

Without wishing to put a dampener on things, will Graydon take on one £500 account at 10%? Im not so sure and my experience (at a distance i will admit) is a bit mixed

I would be very careful about some of these agencies and would simply send a letter detailing that costs penalties and interest will be charged if payment is not received by a date and small claims court proceedings are used

Ill happily draft something for you for free if you Pm me

http://cpcmcredit.wordpress.com/

Graydon won't, but the smaller firms might... (signed up a new client myself today, two cases at 10%!)...

"acorns and oaks" idea cpcm... coz size isn't always the best indicator