Reply to: The joys of chasing payment

[chef]

I've used this with agents. You can legally charge a penalty and interest, which racks up daily.

WHS, it worked as well, agency always paid on time after they were charged 3 invoices in a row for being late for payment. My reasoning was, I turn up and do the contract as you expect, you should pay as detailed in the contract as I expect. They tried to use excuses such as new payroll system blah blah, my response "not my problem, pay on time or pay the penalty plus interest"

[ratewhore]

Assuming it's worth chasing:

Send them another invoice with the original amount plus the statuatory interest, and attach a letter informing them that you expect to be paid or you will pursue it further.

http://www.payontime.co.uk/legislati...tion_main.html

has details of the interest you can charge.

I've never had to go this far myself but I believe the next step is to serve a "Statuatory Demand" which gives them a certain period in which to pay, or to sue and get a court order which you can then enforce with Baliffs. If they still refuse or are unable to pay after that you can petition to have the company wound up.

I've used this with agents. You can legally charge a penalty and interest, which racks up daily.

[rootsnall]

If only I could establish whether or not that was the case with the client in question - they're a startup that hasn't yet started trading. Unfortunately, they won't even respond to any attempts to make contact.

If it's decent sum and their HQ isn't too far away then turn up in person and hand deliver your letter in which it makes clear you are about to start legal proceedings. If that doesn't work and they don't cough up then you are probably stuffed and they are about to go bust !

[TheFaQQer]

Small claims court, costs virtually nothing to submit your case. If they can't be bothered to defend it, they lose:

https://www.moneyclaim.gov.uk/csmco2/index.jsp

WHS - costs start at £25 and go up from there based on the value of the claim.

Get it filed today, and get chasing.

[chicane]

Unless they are genuinely stuffed, in which case it's likely that nobody gets paid.

If only I could establish whether or not that was the case with the client in question - they're a startup that hasn't yet started trading. Unfortunately, they won't even respond to any attempts to make contact.

[doodab]

I hear that that usually makes 'em pay !

Unless they are genuinely stuffed, in which case it's likely that nobody gets paid.

[Platypus]

you can petition to have the company wound up.

I hear that that usually makes 'em pay !

[Moose423956]

If I remember right, you can charge interest of 8% over the base lending rate for the time that the payment is overdue. I made several hundred pounds out of that once. And they mistakenly paid the interest twice. I didn't tell them, but if they ask for it back they can have it.

Edit: that was via the Small Claims Court. Cost me nothing in the end, I charged them for that as well. And I got back about £15k.

[doodab]

Assuming it's worth chasing:

Send them another invoice with the original amount plus the statuatory interest, and attach a letter informing them that you expect to be paid or you will pursue it further.

http://www.payontime.co.uk/legislati...tion_main.html

has details of the interest you can charge.

I've never had to go this far myself but I believe the next step is to serve a "Statuatory Demand" which gives them a certain period in which to pay, or to sue and get a court order which you can then enforce with Baliffs. If they still refuse or are unable to pay after that you can petition to have the company wound up.

[chicane]

Might I politely suggest that you explore the site and have a look?

Thank you for your polite suggestion - I shall do.

[Platypus]

Does this apply to a limited company claiming from a limited company though? I thought it was for individuals against individuals or individuals against companies only?

Money Claim Online can be used by:

Individuals
Solicitors
Government Departments
Businesses

who wish to issue a:

Claim (fixed amount of money)
Judgment
Warrant

Might I politely suggest that you explore the site and have a look?

[chicane]

Small claims court, costs virtually nothing to submit your case. If they can't be bothered to defend it, they lose:

https://www.moneyclaim.gov.uk/csmco2/index.jsp

Does this apply to a limited company claiming from a limited company though? I thought it was for individuals against individuals or individuals against companies only?

[Platypus]

Any suggestions?

Small claims court, costs virtually nothing to submit your case. If they can't be bothered to defend it, they lose:

https://www.moneyclaim.gov.uk/csmco2/index.jsp

[Paddy]

After 18 months I'd write it off unless it is a fairly large invoice.

I will buy them off you if you wish.

[FiveTimes]

After 18 months I'd write it off unless it is a fairly large invoice.