Contracting sting in the tail.

[NotAllThere]

As soon as the invoice is late - send friendly reminder, and noting that if the invoice isn't paid with seven days an admin charge and interest will be added to the outstanding amount. The Late Payment of Commercial debts (Interest) Act - Pay on Time

When that's not paid, another dunning letter, this time with admin charge and interest.
When that's not paid, another dunning letter, noting that interest is continuing to accrue.
When that's not paid, final demand, threatening legal action.

Always offer to discuss, if they've difficulty paying. The last two letters may be copied to the home addresses of the directors.

Usually be the last letter, they'll pay up. You'll probably not get the admin charge and interest, though they are a legal debt. Best to write that off.

The reason for following this process is that if it does end up in court, you've shown that you've been reasonable, which helps your case immensely. If it does go to court, then they'll have to pay the admin charge, interest and court costs. And when you've establised a process to follow, then it takes some of the emotional heat. "Nothing personal, it's just the dunning process my company follows".

[d000hg]

As said, this is kind of normal and you need to phone. Going straight to solicitor's letter before you phone them is crazy. You don't even know for 100% sure your email got through and wasn't marked as spam. It happens.

You don't even have to phone up all cross and shouting, your first call can simply be a polite one to the finance/accounts department to enquire about payment for invoice XXX. Then see what happens.

I for one would love to hear a step-by-step how you approach this and what happens.

[BlasterBates]

This is normal if you don't bill through an agency. You just need to be persistent. They'll pay as late as possible to reduce their working capital. A company can save a lot of tied up capital by paying late; that's why they do it. I doubt you need to take legal action but you need to send a couple of reminders, and the odd phone call won't go amiss. Get them to the point where you can point out if they miss the next date you will take legal action. You should always set a date in the invoice when you expect to be paid, then a reminder with 7 days notice, and then another reminder threatening (politely) legal action. The problem with e-mails is they might not be taken seriously I would send letters.

[Platypus]

People find it much more difficult to talk to people than to read and ignore an email. Or to just forward an email to someone else and wash their hands of the matter.

Even though you may be uncomfortable making the call, it's important that you do. You're forcing the person at the other end to explain why payment is late / what the problem is. They won't be comfortable having this conversation, but remember that the best option they have to make this 'go away' is to pay you. You should call once a day to check progress. They will start ducking your calls, but don't be deterred, find someone else in accounts, or any senior manager and explain and ask if they can help. Once you're a right royal pain in their arse, you may get paid.

[Stan.goodvibes]

It almost makes me wonder if agents are a good thing after all. Almost.

Never!

[SueEllen]

If you don't get through it's pretty hard to communicate anything. An email, like a letter, you know will be read. At least they then can't claim they didn't know or that it was an oversight. And if you get an email reply then you have a record, which you don't have of anything promised by phone.

An single email or single letter are easy to deny receiving.

If you are chasing a debt or have a complaint with a company or person then you are better of trying to talk to them first, then sending them written correspondence with what was said if the issue isn't resolved.

Then when you do send them the correspondence if they are a small company or individual you should send it by two methods i.e. email and fax, email and first class post, and if they are a large company use recorded sign for or special delivery. That way even if they deny receiving the correspondence no regulator or court will believe them.

There is no point using "recorded signed for" or "special delivery" for a small company or individual as it's really easy for the person not to pick up the post and it can be sent back to you.

In fact if you are making a consumer complaint about a company unless you can prove that they got your correspondence i.e. sent it by recorded sign for, some regulators will not look into the complaint at all.

I'm sure that's what's happening here. And why I'm pissed off at being treated this way. A bit naive perhaps, but how many of us would be contractors if we had to chase every payment? It almost makes me wonder if agents are a good thing after all. Almost.

I've had problems with agents and direct clients chasing payments.

The fact is some people are just crooks.

[SorenLorensen]

It almost makes me wonder if agents are a good thing after all. Almost.

No, they're not. I'm having issues with getting paid from an agency, similar to your own situation. Have to agree with the poster who says call them. Or go and see them in person. Shout loud!

[VectraMan]

E-mails are really easy to ignore / delete, but an angry phone call is a lot harder to ignore.

If you don't get through it's pretty hard to communicate anything. An email, like a letter, you know will be read. At least they then can't claim they didn't know or that it was an oversight. And if you get an email reply then you have a record, which you don't have of anything promised by phone.

In my permie days I know the company I worked for used to only pay people who chased.

I'm sure that's what's happening here. And why I'm pissed off at being treated this way. A bit naive perhaps, but how many of us would be contractors if we had to chase every payment? It almost makes me wonder if agents are a good thing after all. Almost.

[escapeUK]

You're completely right of course, but that makes it all much more personal. And it's pretty easy to avoid taking someone's call, but you know an email will have reached that person's inbox.

E-mails are really easy to ignore / delete, but an angry phone call is a lot harder to ignore. In my permie days I know the company I worked for used to only pay people who chased.

[VectraMan]

You're completely right of course, but that makes it all much more personal. And it's pretty easy to avoid taking someone's call, but you know an email will have reached that person's inbox.

[MarillionFan]

Emailed.

Why don't you pick up the phone?

[VectraMan]

Before I started my permie job I managed to squeeze in a 4 week direct contract back at a previous client. This is a well established (70 years) company, that I had a good relationship with from before. I suggested 28 day payment terms, and they said 7 - great. So what could go wrong?

2 weeks after invoicing, no money, so I sent an email, and got no reply. I waited the 28 days and sent a more forceful email, cc'd to the purchasing manager, and the software development manager, and no reply.

I now have a strong feeling of déjà vu as last time I went direct I lost a month's money when the client went bust, but that was a startup and it was the start of the recession. I can't believe these people have gone bust (I'm sure I would have picked up on it whilst I was there if things were bad), so I can only assume it's the typical tactic of holding off on paying suppliers, especially suppliers that have already supplied.

So now it's solicitors and letters before action, and late payment interest etc. I know what to do, but mostly I'm just pissed off at having to deal with this crap.

Sorry for the rant.