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Late and Incomplete Payment.

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    Late and Incomplete Payment.

    My Anglo-Indian agency for a large UK telecom usually pays me 2 weeks after invoice date and have done for about 18 months. Last month they said they would be late due to C-19 and I was OK with that but 4 weeks after invoice date they only paid me *half*.

    After I protested I got a pathetic email where their accountant said they needed to speak with the bank before paying the rest (promised by the end of week). I notice clauses in my contract that I can terminate with non-payment or "admits inability to pay its debts" and I'm tempted to do this and issue a County Court letter for payment of debts.

    Should I give them to the end of week or just break with them now? Wondering how common this is?

    #2
    By the terms of the contract, not the usual payment period you've experienced to date, are they late with payment or otherwise breached the payment terms?

    Check that clause you're looking at, is that a termination avenue for you or (as I'm suspecting) for them? Will termination, if it is the option you think it is, get you your money? Perhaps a quiet word with the client that the company are withholding funds so you are going to withhold work will be more effective?

    Google dunning.

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      #3
      Originally posted by ladymuck View Post
      By the terms of the contract, not the usual payment period you've experienced to date, are they late with payment or otherwise breached the payment terms?

      Check that clause you're looking at, is that a termination avenue for you or (as I'm suspecting) for them? Will termination, if it is the option you think it is, get you your money? Perhaps a quiet word with the client that the company are withholding funds so you are going to withhold work will be more effective?

      Google dunning.
      The termination clauses are many, mutual and quite detailed and include "remains in default not less than 30 days after being notified in writing to make such payment". I'm no lawyer but I think I would have strong grounds for being able to unilaterally terminate very soon at least.

      I suppose the key thing, as you say, is whether this is the option which will get me the money. I used the County Court (used to be Small Claims) website before with a late paying client successfully but I guess if the agency goes bust I'm just another creditor. I'm chasing the client to put pressure on the agency.

      I think the answer is try and keep a lid on my temper for a week or two and consider it again then.

      Comment


        #4
        Are you still working at the client?

        If so, is there anyone you can discuss your concerns with? No point losing a contract if there's just a minor cash flow issue but certainly there's reason to bail out if you're not going to see anything for the effort you're currently putting in. It may be the agency messing you around and the end client know nothing about it.
        The greatest trick the devil ever pulled was convincing the world that he didn't exist

        Comment


          #5
          Originally posted by gruntling View Post
          The termination clauses are many, mutual and quite detailed and include "remains in default not less than 30 days after being notified in writing to make such payment". I'm no lawyer but I think I would have strong grounds for being able to unilaterally terminate very soon at least.

          I suppose the key thing, as you say, is whether this is the option which will get me the money. I used the County Court (used to be Small Claims) website before with a late paying client successfully but I guess if the agency goes bust I'm just another creditor. I'm chasing the client to put pressure on the agency.

          I think the answer is try and keep a lid on my temper for a week or two and consider it again then.
          Keep a lid on your temper but keep the pressure on. I would:

          1. Send a formal email today with a statement of account, requesting payment within 7 days.
          If no satisfactory response:
          2. Send a formal statement of account letter (signed for on delivery) a week today, requesting payment within 7
          days.
          If no satisfactory response:
          3. Send a letter before action letter (signed for on delivery) two weeks today, requesting payment within 7 days or, you will take legal action / engage a debt collection agency (whichever you prefer).

          Comment

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