Originally posted by itconsultantuk
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Reply to: Very late payments on no formal contract
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Previously on "Very late payments on no formal contract"
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First invoice paid in full. He still owes ~25k though.
He has to wait two weeks for public sector payment apparently.
I'm going to wait until I'm up to date in payment before working with him again. Any future work will include a proper contract with weekly payments. If he's over a week late I down tools.
I'll be looking for other work in the meantime...
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Originally posted by itconsultantuk View Post
He claims to have started arranging an overdraft for his company with NatWest using his own personal credit as a backing. (I'm dubious that he can get a 30k overdraft)
An overdraft is the latter.
He can get a debenture against his house to get cash in the company, but that’s about it.
He’s lying to you.
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Originally posted by itconsultantuk View PostMy client two days in a row has whatsapp'd me his progress arranging an overdraft with his bank. He said they would ring me today, but instead leaves me a whatsapp. It's wasting my time waiting around for a call that doesn't come.
He claims to have started arranging an overdraft for his company with NatWest using his own personal credit as a backing. (I'm dubious that he can get a 30k overdraft)
He claims the public sector will be able to pay his company in potentially 2 weeks. (I'm unsure of how much this payment will be)
I'm drafting an email response demanding a clear outline of the amount of each payment and on which date. I'm also offering him a call at a specific time to avoid hanging around for none existing phone calls.
If he doesn't reply or give me specific dates I plan to issue him a final reminder via email. (Taken from the payontime template)
Thoughts?
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My client two days in a row has whatsapp'd me his progress arranging an overdraft with his bank. He said they would ring me today, but instead leaves me a whatsapp. It's wasting my time waiting around for a call that doesn't come.
He claims to have started arranging an overdraft for his company with NatWest using his own personal credit as a backing. (I'm dubious that he can get a 30k overdraft)
He claims the public sector will be able to pay his company in potentially 2 weeks. (I'm unsure of how much this payment will be)
I'm drafting an email response demanding a clear outline of the amount of each payment and on which date. I'm also offering him a call at a specific time to avoid hanging around for none existing phone calls.
If he doesn't reply or give me specific dates I plan to issue him a final reminder via email. (Taken from the payontime template)
Thoughts?
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Originally posted by clearedforlanding View Post
As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice. - If no terms are stated none. But even so, he is in breach of contract.
An agreement to purchase, delivery of the agreed goods/services, and an invoice are all that is needed to be legally binding and owed. In the absence of a contract common law is still valid(IANAL).
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Originally posted by itconsultantuk View PostI received an email from my client who believes he's resolved the issue with the public sector which should unlock funding.
He's also told me he's arranged some kind of financing with the bank and that should allow him to pay something. It worries me that this wasn't already set up. How did he expect to pay any contractors on time without some kind of available cash?
He's not been clear with me about amounts or such.
I want to email him, after some sleep, asking what he is paying and when.
I still need to decide if I want to continue working together after payment. As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice.
Thoughts?
I want to email him, after some sleep, asking what he is paying and when. - You want to send him a letter by registered post setting a final deadline for payment, now that you understand he has "secured" funding.
As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice. - If no terms are stated none. But even so, he is in breach of contract.
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Originally posted by Adrian467 View PostAt this stage, I reckon you should consider some formal process in collecting payment, maybe hint at possible legal action or even using the services of a debt recovery agency?
Sent from my iPhone using Contractor UK Forum
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Debt collectors
At this stage, I reckon you should consider some formal process in collecting payment, maybe hint at possible legal action or even using the services of a debt recovery agency?
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If the end client is now making the payments and your client pays off his debt, then it's good to go. I would ask that he pay you more frequently though, eg weekly. The financing from the bank should allow this and give you more confidence.
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Originally posted by itconsultantuk View PostI received an email from my client who believes he's resolved the issue with the public sector which should unlock funding.
He's also told me he's arranged some kind of financing with the bank and that should allow him to pay something. It worries me that this wasn't already set up. How did he expect to pay any contractors on time without some kind of available cash?
He's not been clear with me about amounts or such.
I want to email him, after some sleep, asking what he is paying and when.
I still need to decide if I want to continue working together after payment. As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice.
Thoughts?
Leave a comment:
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I received an email from my client who believes he's resolved the issue with the public sector which should unlock funding.
He's also told me he's arranged some kind of financing with the bank and that should allow him to pay something. It worries me that this wasn't already set up. How did he expect to pay any contractors on time without some kind of available cash?
He's not been clear with me about amounts or such.
I want to email him, after some sleep, asking what he is paying and when.
I still need to decide if I want to continue working together after payment. As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice.
Thoughts?
Leave a comment:
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Originally posted by itconsultantuk View PostThank you for the advice and opinions. It's made me clearer on my position going forward.
Tomorrow I have a call with the Director of my client where they said they'd update me on their plans to resolve payments and get me working again. I'll bring up his business plan and ask about their long term financing plan.
If I'm unsatisfied with the responses I'll start dunning.
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Thank you for the advice and opinions. It's made me clearer on my position going forward.
Tomorrow I have a call with the Director of my client where they said they'd update me on their plans to resolve payments and get me working again. I'll bring up his business plan and ask about their long term financing plan.
If I'm unsatisfied with the responses I'll start dunning.
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Originally posted by Lance View PostI doubt they can afford administrators if they are that screwed. It would be a job for the official receiver.
This is an option to kick start the process.
Can I issue a winding up petition? - Company Rescue
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