Business Client not paying overdue Invoice

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kormak

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Apologies to mods if this is the wrong place*

Hi everyone,

Firstly I wont be mentioning who the client is, but I would really like to hear some advice as to what I should do next...

I have done work for a small publisher who now owes me a small amt of money, but owes me all the same. Naively I did the work upfront on the promise that the work is regular - monthly. The invoice is over 30 days overdue (on top of 30days credit). Usually I'd negotiate with client (ie if they cant pay right now, Id come to some type of arrangement) but very annoyingly, the client has not returned calls, emails etc in nearly a month. I am assured the company is still is a tenant of the office block they reside in. I know this as I have left msg's at the reception which they assure me have been passed on. I know its not the office premises job to keep tabs on the client but they wont tell me if the client has been in the office anytime in the last month... The office phone/mobile never answers, the msg (previously saying welcome to blah blah blah leave a msg) has changed to (generic phone voice saying leave a msg).

Its been nearly a month since last email from client saying chq was going in the post....

Ive also sent a mail saying that I will be getting legal if I dont have any correspondance in a week. And guess what - no correspondance.

What do you all think?
 
Welcome to my world. We are owed so much money it gives me a headache when i think about it.

How much money are we talking? Sometimes you have to write off bad debts, depending on amount.
 
I'm owed just over a e1000...
not a huge amount but definitively not to be sniffed at either.
 
Hi Kormak,

You are dead right in chasing this amount and suggest that you stick with it.

However, I think you may have made a mistake sending a mail saying that you would go legal and not following it up.

I think the fact that you said that you would get a solicitor involved means that you really have to get a solicitor involved.

Obviously getting a solicitors letter is going to cost you but at this stage it is quite straight forward and will only cost you a few euros but it is better than loosing 1000!

If you had not said that you were going to get a solicitor involved I would have suggested one or two visits to the debtor. You would be surprised how easy it is to jump up the priority list once you start hanging around their reception especially if they have cleints there!

I suggest you move fast in order to follow up your previous mail but also because you dont want to find out that the company goes into liquidation/receivership before you get paid.

Best of luck

Jack
 
Leave a message for him under a different name about the big advert you want to place in his next edition, and see how quickly he calls you back.
 
Hi Jack, I've already spoke with my solicitor today and he's about to send him a legal letter. He's a good mate of mine and reckoned this was the next best step forward...
 
If you threaten something and don't do it you will be seen as a soft touch. If there is no response to the legal letter then next step is a civil summons for the debt. You have to be seen as someone not to be messed with. It's the only way, whether it's €500 or €5,000.
 
Complainer said:
Leave a message for him under a different name about the big advert you want to place in his next edition, and see how quickly he calls you back.
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I am a regular contributor to this action for my clients. When their customers will not answer the phones (caller ID) I ring from my mobile and hey presto it's answered and I give the phone to my client. Nine times out of ten he gets his money. Leaving a message on their answering machine to ring me back also works.
 
kormak said:
The invoice is over 30 days overdue (on top of 30days credit). the client has not returned calls, emails etc in nearly a month. I am assured the company is still is a tenant of the office block they reside in. ?
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You are calling in a solicitor after 30 days?

You have been corresponding by email / phone / post , and you don't even know if your client still does business from his office base ?

In my opinion , the first thing you need to do , is call to his office , and find out exactly why he has not paid up.

He may be waiting for one of his own debtors to pay him first. Ask him for a post dated cheque , if he claims this is the case .

Solicitors letter after 30/60 days will not work € 1000.

You need to make direct contact with this client .
 
Or possibly send them a final demand letter. Giving them 7 days notice to settle the debt in full or you'll be taking legal action. It may seem more offical than an email, especially if sent by registered post.
 
allthedoyles said:
You are calling in a solicitor after 30 days?

You have been corresponding by email / phone / post , and you don't even know if your client still does business from his office base ?

In my opinion , the first thing you need to do , is call to his office , and find out exactly why he has not paid up.

He may be waiting for one of his own debtors to pay him first. Ask him for a post dated cheque , if he claims this is the case .

Solicitors letter after 30/60 days will not work € 1000.

You need to make direct contact with this client .
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I agree that 60 days is very soon to go legal, let alone threaten legal action. I give 30 days credit and would wait another 60 days before even mentioning the word "legal". After another 30 days I send a 7-day summons notice by registered post. Then, no solicitors letter, just a summons (organised by the solicitor of course).

For €1,000, it's well worth your while chasing it through the courts. Your debtor has ackowledged the debt (you have correspondence from them saying that payment is being made) so it should be a slam dunk. Though I find most debtors just ignore everything so it usually goes straight to judgment.
 
billythefish said:
I agree that 60 days is very soon to go legal, let alone threaten legal action. I give 30 days credit and would wait another 60 days before even mentioning the word "legal". After another 30 days I send a 7-day summons notice by registered post. Then, no solicitors letter, just a summons (organised by the solicitor of course).

For €1,000, it's well worth your while chasing it through the courts. Your debtor has ackowledged the debt (you have correspondence from them saying that payment is being made) so it should be a slam dunk. Though I find most debtors just ignore everything so it usually goes straight to judgment.
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believe me I mulled over this for some time but it's the fact that I have made repeated attempts to call/text/email/phone office, etc... with no joy whatsoever...
I've even offered to come to some sort of financial arrangement but he hasn't even had the shred of decency to respond to this or anything else.
This guy's phone/phone msg greeting has since changed and one of his websites is NOW offline.
This is why I took the swift legal action.
Normally I'll usually give the benefit of the doubt and 9/10 people come through in the end some way or the other.
But this guy is simple taking the pi$$!
 
A letter to his home addressed to his wife / partner works too. Apologise for contacting at home but say how concerned you are about his health as you have not been able to get in touch at the office, he hasnt been there or answered his messages. Identify that you are owed a 'small' amount outstanding (state the amount) and politely enquire as to who is dealing with the accounts in his absence and ask if it is possible to drop around in 3 / 4 days to collect a cheque at the house as you would prefer not to bother him while sick / absent etc.
You'll get the cheque as last thing wanted is you at the doorstep. You'll also get a call from him about the earful he got and you'll never have to worry about his bad debt again.
 
Sconhome said:
A letter to his home addressed to his wife / partner works too. Apologise for contacting at home but say how concerned you are about his health as you have not been able to get in touch at the office, he hasnt been there or answered his messages. Identify that you are owed a 'small' amount outstanding (state the amount) and politely enquire as to who is dealing with the accounts in his absence and ask if it is possible to drop around in 3 / 4 days to collect a cheque at the house as you would prefer not to bother him while sick / absent etc.
You'll get the cheque as last thing wanted is you at the doorstep. You'll also get a call from him about the earful he got and you'll never have to worry about his bad debt again.
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you might just have to worry about not getting any repeat business!
 
bond-007;899712 [URL said:
http://www.irishstatutebook.ie/1997/en/act/pub/0026/sec0010.html[/URL]
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Does he not have a "reasonable excuse"?

bond-007 said:
[URL="http://www.irishstatutebook.ie/1994/en/act/pub/0002/sec0017.html"]http://www.irishstatutebook.ie/1994/en/act/pub/0002/sec0017.html[/URL]
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"It shall be an offence for any person who, with a view to gain for himself or another or with intent to cause loss to another, makes any unwarranted demand with menaces.".... does this really apply to the OP?

bond-007 said:
More food for thought here: [URL="http://archives.tcm.ie/businesspost/2007/11/25/story28445.asp"]http://archives.tcm.ie/businesspost/2007/11/25/story28445.asp[/URL]
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Again, I think this is all a bit extreme and doesn't include the OP. I think the suggestion earlier of ringing the home out of concern for the poor debtor's health was a good one.
 
I would not recommend misusing the telephone in this way.

Note, if the debtor tells you to go away and not to call again, all of the above comes into play.
 
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