US Company 26 days overdue on large payment

[luimneach2005]

Hey, I don't seem to have luck providing services for consultancies. The last one kept promising payment which was finally made when I threatened to wind them up. That was a few years back!

This time I was with an American company who guaranteed (in writing) that they would pay me for services + travel time (remote client) regardless of it being signed off with their client. I have a written contract.

For 20+ hours of travel each week I charged them 4 - thought I was being soooo reasonable.

Payment of over £15000 became due 26 days ago (after 30 day payment terms). I have sent several emails to them. Their replies ranged from silence, then 'I need to speak to X who's been abroad' and after even more prompting it's now become 'We must wait for our client to sign off your hours'. I finished the engagement over two months ago now.

Am very very nervous, it's a large sum and I have no faith they will pay at this point.

Open to any suggestions? They are US based, no UK office, client was in Ireland. My co is UK.

[pmeswani]

Re: US Company 26 days overdue on large payment

If you have an invoice, and evidence of intent, including a purchase order, pass it into a debt collection agency and take a small hit.

[Safe Collections]

Hey, I don't seem to have luck providing services for consultancies. The last one kept promising payment which was finally made when I threatened to wind them up. That was a few years back!

This time I was with an American company who guaranteed (in writing) that they would pay me for services + travel time (remote client) regardless of it being signed off with their client. I have a written contract.

For 20+ hours of travel each week I charged them 4 - thought I was being soooo reasonable.

Payment of over £15000 became due 26 days ago (after 30 day payment terms). I have sent several emails to them. Their replies ranged from silence, then 'I need to speak to X who's been abroad' and after even more prompting it's now become 'We must wait for our client to sign off your hours'. I finished the engagement over two months ago now.

Am very very nervous, it's a large sum and I have no faith they will pay at this point.

Open to any suggestions? They are US based, no UK office, client was in Ireland. My co is UK.

OK first of all, don't panic (yet). Payment terms in the US are significantly longer than they are in the UK. Most American companies don't chase an invoice until its at least 45 days overdue.

However the excuses they are coming up with are unhelpful at best and probably without foundation. It sounds to us like they are using the distance to delay payment and using your money to artificially expand their own cash flow.

On the plus side, you have a written contract. This is a huge plus when chasing a US company.

So currently your options are:

A) Continue to chase from the UK
B) Find a reputable UK debt collection company with an agent in the US
C) Try and find a reputable agency/lawyer in the US to pursue the balance

Given you have no faith the company will pay we would suggest you ignore option A and look to increase the pressure on the company.

You can read our US affiliates synopsis of how debt collection works in the USA on our blog.

Hope that helps

[luimneach2005]

Thanks for the info. They have suddenly become nasty and are using lies to delay even further. They refuse to answer my questions at all - ie they are ignoring me. I'm at my wits end and their claims are becoming wilder the more pressure I put on. It has now been over two months and I had 30 day payment terms. They won't give me any reply or info at this point, are making new excuses up and contradicting both what they've written and indeed stated to people I know who they have interviewed.
Sick to my stomach as I admired this company but they're turning out to be real sleazy. I expect I'll be putting this to a debt collection agency early next week as I can't deal with these people any longer.