Reply to: Agency Supplier Refusing to Pay - Ignoring my request for Payment.

[simes]

your 'thinking' is flawed.

Agencies factor the invoices so that their cashflow is covered. This means they can pay weekly, and in advance of the client paying them.

That's all well and good until the agency gets a sniff that the bill might not get paid. At that point they'll stop paying the contractor early as there is a risk they'll not get the money back (factoring companies claw back money not paid to them).

As the OP screwed up the contract and was removed from the site, the agency is not going to pay until they've been paid or are forced to pay. Going to court without giving them reasonable opportunity to pay (more than 6 weeks IMO) is not a good idea.

Fair play.

[northernladuk]

No

Me neither. HTH

[GhostofTarbera]

nobody read this edit then?

No


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[BR14]

Hello all,

Long story but it is necessary to understand the matter in context.


Had an issue with client so got terminated 6 week in to contract, this is not the problem.

Payment is now being delayed as agency said timesheet was taking time to get approved by the client

I threatened to escalate the matter directly to the client even though am no longer with the client.

Agency then responded that client has approved the timesheet and I will be paid in due course.

five to six weeks on, I have not been paid even though client has approved the timesheet as confirmed by the agent.

Agent has specifically and strongly warned me not to escalate or get in contact with the client as I will be paid when the client has paid them!!

Agency not responding to me, so am left with no choice but to go legal and escalate the matter. I am here, so to make sure it is done properly in my claim before going legal with the matter. I don't want to make any mistake or error in the process.

It is obvious the agency is deliberately stalling and not interested in getting me paid.


Below is the email I want to send to the agent and all the senior members of the agency before proceeding with small claims process as stated here When should I use the small claims court?

The agency are a big name and brand with sites in the united states and europe and their client is a big known financial institution.

================================================== =====

" Dear Agency Name,

As per our last discussion on the phone, we agreed that friday the 23rd of august is when monies owed to my company should have been cleared in to my account, this has not happened as of yet.

As indicated, if the timesheet has been approved as confirmed by ( Agency Name ), the next process should be payment to be made as supposed.

If this is not the case, I will proceed in making contact with the finance, the public relations and HR department of ( Client Company ) to look in to why this is still a matter. It it also in their interest to be aware of this development as they will be included in the small claims case I intend to take out against ( Agency Name ) as the contract and services rendered was executed on their premises, (Client Name)

I expect their legal team to respond strongly in this matter.
I am left with no choice but to pursue this matter via this route as there is no satisfactory explanation why ( Agency Name ) are unable to make the payment of monies owed to my company and close this matter.

The next contact I will be making with you on this will be the county court summons, please note, once this is lodged, the cost of lodging this claim will be added to the current balance owed.

I also, will be making contact with my local newspaper that will be interested in running this story in their local periodical.


Regards


Name - signed "

================================================

What do people think, I need to send a formal letter before making the court claim against the agent, is the email good enough and should I escalate it to the said client too.

I have sourced the full names of the top partners of the agency and want to escalate the matter to them too.

I am also "opted in" in the contract regulation

Thanks everyone and sorry for the length.


====================================

Result!!

Just wanted to thank everyone for your contribution and suggestions.

The Invoice was paid a few hours after this post was posted. Meaning that the agent did keep to their word on paying today the 23rd.

Thanks once more.

nobody read this edit then?

[Lance]

I beg to differ sir.

In this example, the two or three emails from contractor to agent IS part of the gentle escalation. Following said emails, then That is the time to state a change of contact, from contractor to solicitor.

As for contractor being paid Only when the agent is paid. Rubbish. In my personal experience, I have been paid way in advance of when the agent has been paid (For eg, seven days). I also have friends who are agents who pay their contractors weekly, but invoice their clients monthly. Their bridging and factoring loans cover the interims.

At the end of the day, the contract is between agent and contractor. Focus on that, and do not allow someone else's problem to become your problem.

...is my thinking.

your 'thinking' is flawed.

Agencies factor the invoices so that their cashflow is covered. This means they can pay weekly, and in advance of the client paying them.

That's all well and good until the agency gets a sniff that the bill might not get paid. At that point they'll stop paying the contractor early as there is a risk they'll not get the money back (factoring companies claw back money not paid to them).

As the OP screwed up the contract and was removed from the site, the agency is not going to pay until they've been paid or are forced to pay. Going to court without giving them reasonable opportunity to pay (more than 6 weeks IMO) is not a good idea.

[cojak]

...or contact SafeCollections and let them help - £12K would be worth it.

(Yes, come out SC, we can see you lurking... )

[simes]

bad idea....

Stick to a generic dunning process with gentle escalation.
If you threaten with big guns straight away then you incur unnecessary costs, or worse you back down from your threat and look like a twat.

The agency isn't going to pay until they've been paid no matter what you threaten.

Oh and if you end up in court not having given them chance to pay the judge will not look favourably on it either.

I beg to differ sir.

In this example, the two or three emails from contractor to agent IS part of the gentle escalation. Following said emails, then That is the time to state a change of contact, from contractor to solicitor.

As for contractor being paid Only when the agent is paid. Rubbish. In my personal experience, I have been paid way in advance of when the agent has been paid (For eg, seven days). I also have friends who are agents who pay their contractors weekly, but invoice their clients monthly. Their bridging and factoring loans cover the interims.

At the end of the day, the contract is between agent and contractor. Focus on that, and do not allow someone else's problem to become your problem.

...is my thinking.

[cojak]

Thanks to Lance for reminding me about this video.

https://www.contractoruk.com/forums/...ml#post2675136

Edit: hmm updated my post, maybe do it with a little less gusto, if they are fixing a problem of your making.

As you said OP, one of those things...

[NotAllThere]

Ok, will wait a bit longer, another month probably. See what happens. Will not send the email for now.

Thanks for your input.

My dunning process.

Not paid 30 days after due date - send reminder by registered post, requesting payment within 30 days. Offer to discuss if they're having difficulties paying.
If not paid, send another reminder, giving 5 working days to pay. Offer to discuss if they're having difficulties paying.
If not paid, issue final demand, payable immediately, including that legal action will be taken to recover the debt, plus statutory interest and admin fees (as laid out in legislation).

Do not otherwise communicate with the agency.

If not paid within 5 days, contact a solicitor.

[BlasterBates]

Generally no need to be angry or hysterical when getting invoices paid. Just be firm and methodical. First is a polite reminder, then a more stern reminder with 7 days to pay, and then threaten legal action. No need to go into details unless the agency comes back with an argument as to why they're not paying.

[Lance]

Will give it another month at least and see what response I get as they may not have been paid. I executed a wrong code that will take time to fix. One of those things.

Thanks for your input and will keep you updated.

You really want to not piss anyone off any more then. Last thing you want is a bill to fix your feckup, and the subsequent PI claim.

[sharemaster2]

Did you not get paid for the entire 6 weeks??

One thing though is that you got terminated so really threatening to take them to court will not make you look good. I am sure there is some bad feelings across all parties and the one thing you need to do is come across a bit more professional. If agency gets paid, they will certainly pay your invoice. So give it a couple of months.

Was not paid at all as I had just sent them first invoice before it went all south as they say.

Will waite and give it time.

Thanks for your reply.

[sharemaster2]

I think this will give them a Friday laugh

Anyhoo the client probably has not paid them yet (probably 60/90 days payment terms) and they want to make sure they get paid as you got fired for a serious reason and they may change there minds not to pay you - did you get fired for not doing your job?


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Will give it another month at least and see what response I get as they may not have been paid. I executed a wrong code that will take time to fix. One of those things.

Thanks for your input and will keep you updated.

[sharemaster2]

don't threaten to breach the contract. Any dunning letter should not involve the client.
If you are going to talk to the client it must be done on the QT (if at all).

Keep it formal, polite and unemotional. Provide evidence of timesheets signed.
Dunning (process) - Wikipedia

Have patience. And make them do the work to find ways to not pay you.

If you've not opted out they don't have a leg to stand on.
If you are opted out but have signed timesheets they still don't have a leg to stand on (assuming the contract terms aren't really unfair to you).

Ok, will wait a bit longer, another month probably. See what happens. Will not send the email for now.

Thanks for your input.

[NotAllThere]

You do not escalate to the client. It is nothing to do with them.