Client isn't paying - do I take the site down?

[NotAllThere]

I've also had to threaten this at a previous client - payment was in my account 3 days later but it did (as I'd expected) damage the relationship. THey went bust not long after though so didn't really matter to me in the long run.

Unless I really need the money, I don't really want a relationship with a client that consistently pays late. I suppose with some low-end target client bases, you don't have a lot of choice. In that case - I'd change the client base!

[RichardCranium]

Must point out though that i think IT contractors are very spoilt with the payment terms we normally expect.

Not since the Late Payment legislation was brought in in 1998. If businesses in the UK (and Europe since 2002/2005) are not chasing their debts, that's their problem.

In the 'real' world a lot of companies simply won't pay until they receive a final threatening reminder so if you want to run a business you need to get used to this.

It's not like that any more. It certainly was - one of the very first systems I worked on was an expected payment chasing system that handled discounts based on a calendar and credit history.

I do a lot of work for various smaller clients and, realistically, for a number of them i don't expect payment for up to 90 days even though my invoices state 30. This is basically through experience, i know they'll ignore reminder No 1 and No 2 and only react to No 3. I've worked for several companies whose open policy is only to pay an invoice upon final red reminder and listened to the girls on the phone who have the role of palming off creditors day-in day-out.

So stop giving out free credit and send the red invoice on day 30.

The trick is working out who is going to pay and who isn't.

And agencies take a %age of the client fee which includes their factoring service. We are, in effect, paying the agencies to pay us within the contracted terms regardless of whether the client has paid them.

So we are not spoilt. We are paying for a premium service.

[TheFaQQer]

We are paying for a premium service.

We are paying a premium for a service.

I'm yet to meet an agency that gives me a premium service