Unpaid invoice...How long before I get arsey.
Discussion
I put in invoice into a company for work I had done in April. I was told it would be paid on May 25th.
It wasn't and the company admits they have screwed up their billing system from me and a group of freelance staff and that it would be paid as a priority - but with no date given.
Brief back story is the firm took over another firm that I was a contractor for and it sounds like they have messed up merging the two payroll or payout systems. They screwed up the previous months payment, no remittance advice and they paid a little late after I prompted them.
I am no longer working for these people, and neither are the other freelance contractors. We were there for a specific task during the company merger/handover period.
So now I am owed cash from April. I have found out that some of the other contractors have been paid, others not.
There is not a cash flow problem with the firm, it is a big nationally, even internationally known operation.
I sent an email today asking if it was right to assume I would be paid this money tomorrow. No response.
They are a piss poor firm to work for to be honest. I really don't want to work for them again though there will be work in the future there.
I don't want to burn bridges, but if I do, it really does not matter. Its just silly to piss people off. If however I have to do this to get what I am owed, then so be it.
How do I go about getting paid? We are talking 4 grand here.
The bigger operations are sometimes the hardest to get paid by - had numerous issues with big international hotel chains for instance.
Write a 7 day letter, addressed for the attention of the Financial Controller at their main office address. State in the letter that if payment is not received within the next seven working days, that legal action will be taken to recover the monies owed without any further notice being given.
Include on the letter the details of the outstanding invoice (date, inv number, balance), and include a copy of the invoice with the letter. Make sure it is marked up as a 'copy invoice'.
Send it off and sit back. If on the 5th day no funds arrive, get back on the phone, tell them they have 48hrs to sort it to avoid court costs. Then give it a couple of days to allow for a 3 day BACS transfer which might delay things, then file the MCOL claim.
If you've done the above, you've given them every opportunity of avoiding it.
Out of interest - do you state your payment terms on your invoice? Like "14 days from date of invoice"? If you don't, they might just enter you into their default terms, which might be 60 days.
Write a 7 day letter, addressed for the attention of the Financial Controller at their main office address. State in the letter that if payment is not received within the next seven working days, that legal action will be taken to recover the monies owed without any further notice being given.
Include on the letter the details of the outstanding invoice (date, inv number, balance), and include a copy of the invoice with the letter. Make sure it is marked up as a 'copy invoice'.
Send it off and sit back. If on the 5th day no funds arrive, get back on the phone, tell them they have 48hrs to sort it to avoid court costs. Then give it a couple of days to allow for a 3 day BACS transfer which might delay things, then file the MCOL claim.
If you've done the above, you've given them every opportunity of avoiding it.
Out of interest - do you state your payment terms on your invoice? Like "14 days from date of invoice"? If you don't, they might just enter you into their default terms, which might be 60 days.
Don't forget the statutory late payment charges! www.payontime.co.uk has the details!
Thanks for that. I submitted my invoice only to be told it had to be on one of theirs, some sort of spreadsheet thing which lists hours worked. The old firm and other companies I work with are happy with the standard invoice I have been using for ages. They all also have a standard pay day so you invoice before the end of the month, and they pay on the 15th or whatever.
It makes me angry because it is a business that has a hell of a lot of self employed staff, some of their highest earners work freelance. So getting an invoice is far from unusual, and they must pay them in time for most people.
Re: a letter before action. Do I actually write this on the letter?
Dear Sir,
LETTER BEFORE ACTION
You have not paid my April invoice XXX. For the sum if XXX
Please settle this account in full within seven working days or I will begin legal action to recover the debt.
Yous etc......
Maybe I should sell the debt on to the Kray Twins. They'd sort it! :-)
It makes me angry because it is a business that has a hell of a lot of self employed staff, some of their highest earners work freelance. So getting an invoice is far from unusual, and they must pay them in time for most people.
Re: a letter before action. Do I actually write this on the letter?
Dear Sir,
LETTER BEFORE ACTION
You have not paid my April invoice XXX. For the sum if XXX
Please settle this account in full within seven working days or I will begin legal action to recover the debt.
Yous etc......
Maybe I should sell the debt on to the Kray Twins. They'd sort it! :-)
Exactly. With a large Company it's usually a case of finding out what format they want the invoice in, who will authorise the payment and who will action the payment.
If all of above isn't in place then you are likely to find your invoice in limbo.
Perhaps direct your enquiries toward asking what you need to do in order to get the invoice paid rather than just demanding payment?
If all of above isn't in place then you are likely to find your invoice in limbo.
Perhaps direct your enquiries toward asking what you need to do in order to get the invoice paid rather than just demanding payment?
Edited by C Lee Farquar on Wednesday 25th June 06:10
It was filled in properly on their system. I have an email saying it was approved and then sent off in their system.
That is one problem with big firms. The person I am dealing with at the company I was working for looks like they did their bit right.
Other contractors who worked during this handover period have not been paid. Others have.
It was an odd situation. The merger took ages and a lot of staff jumped ship. I used to be a senior staff member but had left to start my own company. I was brought back as a contractor to help keep the changeover smooth.
That is one problem with big firms. The person I am dealing with at the company I was working for looks like they did their bit right.
Other contractors who worked during this handover period have not been paid. Others have.
It was an odd situation. The merger took ages and a lot of staff jumped ship. I used to be a senior staff member but had left to start my own company. I was brought back as a contractor to help keep the changeover smooth.
It is probably just 'big company syndrome' A friend of mine recently got quite a senior position with a rail company. Despite having a fully fledged HR department, they forgot to arrange his pension... Once you are 'out of The System' it can be remarkably hard to get the various idiots inside to put you back.
wildcat45 said:
The person I am dealing with at the company I was working for looks like they did their bit right.
A lot of bigger Companies are like this until you're 'on the system'. However, immediate payment somehow becomes possible if they need your services again urgently.
I email people on the day payment is due as a reminder then call every other day after that. They may find it annoying but 28 days is long enough to make a payment in my book. Good to hear you got paid in the end though albeit life is too short to deal with regular late payers imho.
TX.
TX.
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