OK, I am expecting a payment on Thursday and I am fairly sure the agency in question has some cashflow issues so I don't want to beat about the bush. Is it acceptable to send a "letter before action" demanding payment and threatening legal action and so on straight away or must one send a fluffier late payment demand first? Something along the lines of
And then presuming non payment, follow up with a final letter with interest + compensation added to the bill and either instruct a solicitor or sell it to a debt collection agency. Also would I be correct in thinking that this covers me for withdrawing services in the event they fail to cough up on time.
Letter Before Action
Our invoice XXXX is now overdue for payment.
Please pay the attached invoice within seven days or legal action will be taken, without further notice, to recover the full outstanding amount.
Please note that we have not yet levied any late payment charges under the Late Payment of Commercial Debts (Interest) Act 1998 as supplemented and amended by the Commercial Debt Regulations 2002”. Should payment in full not be received within seven days we will add these charges to your account.
Please note that our company has a policy of ceasing supplies of goods and/or services to organisations with an account more than 7 days overdue.
Our invoice XXXX is now overdue for payment.
Please pay the attached invoice within seven days or legal action will be taken, without further notice, to recover the full outstanding amount.
Please note that we have not yet levied any late payment charges under the Late Payment of Commercial Debts (Interest) Act 1998 as supplemented and amended by the Commercial Debt Regulations 2002”. Should payment in full not be received within seven days we will add these charges to your account.
Please note that our company has a policy of ceasing supplies of goods and/or services to organisations with an account more than 7 days overdue.
either party may terminate the contract by Immediate Notice, if the other is in material breach of contract, or is in breach of contract and fails to remedy the breach within fourteen days of being required in writing to do so, or if the other becomes insolvent or ceases to carry on business, or if any preliminary step is taken towards the other’s liquidation winding up receivership or administration (other than for bona fide reconstruction or amalgamation).
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