Chasing an unpaid invoice - Notice of Legal Proceedings
Discussion
I've been chasing payment from a company (new client, their first order) on printed materials I supplied them a month ago, normally I would require and get payment in advance but they were in a rush to get the items and seemed genuine and easy to communicate with so I gave them the benefit of doubt and went ahead with production and delivered the items.
I sent the invoice as soon as they confirmed the order (3rd Jan 2018) and requested payment by Bank Transfer ASAP.
It's been a month now and I've been sending reminders and contacting by phone, leaving messages with reception but they have made no effort to respond in any way, so now I feel they are purposely avoiding contact and have no intentions to pay. They seem to be some sort of law firm.
Would my next move be to send a letter of Notice of Legal Proceedings? is there any particular format I should adhere to?
The amount due is c£860
Cheers.
^^^^ thats for later....
Send a simple 7 day Letter Before Action (loads of templates on Gooooogle), then use Money Claim Online and issue a claim if they fail to respond.
https://www.moneyclaim.gov.uk/web/mcol/welcome
Send a simple 7 day Letter Before Action (loads of templates on Gooooogle), then use Money Claim Online and issue a claim if they fail to respond.
https://www.moneyclaim.gov.uk/web/mcol/welcome
I think you are getting a tad ott for such a short period, few companies will sort in under a month, some are 60/90 days. Yes it's a pain & personally as a one man band set up I won't deal with the 90 day type, but lots of companies are very tardy in payment, if you are busy enough just don't deal with them again or state payment up front.
In your shoes I'd just wait until 2 months from invoice & then start to chase.
In your shoes I'd just wait until 2 months from invoice & then start to chase.
Payment was due up-front but I gave them the benefit of doubt as if I waited any longer for the payment before despatching the goods they would not have received them in-time.
If someone would actually respond to my calls and emails and just tell me that they have 60 or 90 days payment terms then I could live with that, but they are ignoring all contact I am making.
A few weeks ago they sent me a scanned copy of what looks like a Metro Bank transaction receipt, but it could easily be something knocked up on a computer..
I currently work in purchasing for a large company and we have the reverse problem all the time (suppliers complaining they haven't been paid)
Large companies have their own systems for paying, and their accounts department won't make special exceptions just for you. In my case our accounts pay "30 days from month end" e.g.
invoice received 1st January - paid 30 days from end of Jan = 2nd March.
Invoice received 29th January - paid 30 days from end of Jan = 2nd March.
Have a nice conversation with their accounts department and see what rules they are playing too, to enable you to play the game better, because at the moment it just sounds like you are caught in the system.
As another example, a self employed friend was having trouble getting paid from a large company, and wanted paid in 14 days as per their invoice and couldn't past why they wouldn't pay in 14 days, "because that's whats on the invoice - do they not read the invoice?"
I told them about the above and it turns out their customer worked the same system, but they were making it worse for themselves.
Job done - 5th January
Sit down and do paperwork and send invoice few weeks later - 22nd January
Get round to getting stamps and posting it - 28th - 30th January
Arrives at customer 2nd February
Paid 30 days month end = paid 30th March.
By not working to or playing the system it's gone from getting paid in 90days instead of 60days.
Just some food for thought on why you can get caught up in an accountant departments payment system. And they only have one way of doing things - Their way
Large companies have their own systems for paying, and their accounts department won't make special exceptions just for you. In my case our accounts pay "30 days from month end" e.g.
invoice received 1st January - paid 30 days from end of Jan = 2nd March.
Invoice received 29th January - paid 30 days from end of Jan = 2nd March.
Have a nice conversation with their accounts department and see what rules they are playing too, to enable you to play the game better, because at the moment it just sounds like you are caught in the system.
As another example, a self employed friend was having trouble getting paid from a large company, and wanted paid in 14 days as per their invoice and couldn't past why they wouldn't pay in 14 days, "because that's whats on the invoice - do they not read the invoice?"
I told them about the above and it turns out their customer worked the same system, but they were making it worse for themselves.
Job done - 5th January
Sit down and do paperwork and send invoice few weeks later - 22nd January
Get round to getting stamps and posting it - 28th - 30th January
Arrives at customer 2nd February
Paid 30 days month end = paid 30th March.
By not working to or playing the system it's gone from getting paid in 90days instead of 60days.
Just some food for thought on why you can get caught up in an accountant departments payment system. And they only have one way of doing things - Their way
hast2 said:
I currently work in purchasing for a large company and we have the reverse problem all the time (suppliers complaining they haven't been paid)
Large companies have their own systems for paying, and their accounts department won't make special exceptions just for you. In my case our accounts pay "30 days from month end" e.g.
invoice received 1st January - paid 30 days from end of Jan = 2nd March.
Invoice received 29th January - paid 30 days from end of Jan = 2nd March.
Have a nice conversation with their accounts department and see what rules they are playing too, to enable you to play the game better, because at the moment it just sounds like you are caught in the system.
As another example, a self employed friend was having trouble getting paid from a large company, and wanted paid in 14 days as per their invoice and couldn't past why they wouldn't pay in 14 days, "because that's whats on the invoice - do they not read the invoice?"
I told them about the above and it turns out their customer worked the same system, but they were making it worse for themselves.
Job done - 5th January
Sit down and do paperwork and send invoice few weeks later - 22nd January
Get round to getting stamps and posting it - 28th - 30th January
Arrives at customer 2nd February
Paid 30 days month end = paid 30th March.
By not working to or playing the system it's gone from getting paid in 90days instead of 60days.
Just some food for thought on why you can get caught up in an accountant departments payment system. And they only have one way of doing things - Their way
And here in lies the problem. Big companies imposing their payment systems on smaller companies.Large companies have their own systems for paying, and their accounts department won't make special exceptions just for you. In my case our accounts pay "30 days from month end" e.g.
invoice received 1st January - paid 30 days from end of Jan = 2nd March.
Invoice received 29th January - paid 30 days from end of Jan = 2nd March.
Have a nice conversation with their accounts department and see what rules they are playing too, to enable you to play the game better, because at the moment it just sounds like you are caught in the system.
As another example, a self employed friend was having trouble getting paid from a large company, and wanted paid in 14 days as per their invoice and couldn't past why they wouldn't pay in 14 days, "because that's whats on the invoice - do they not read the invoice?"
I told them about the above and it turns out their customer worked the same system, but they were making it worse for themselves.
Job done - 5th January
Sit down and do paperwork and send invoice few weeks later - 22nd January
Get round to getting stamps and posting it - 28th - 30th January
Arrives at customer 2nd February
Paid 30 days month end = paid 30th March.
By not working to or playing the system it's gone from getting paid in 90days instead of 60days.
Just some food for thought on why you can get caught up in an accountant departments payment system. And they only have one way of doing things - Their way
I'm guessing at the time of purchasing the larger companies rarely explain this to the supplier in advance of the work being invoiced.
Unless you negotiate otherwise, its the suppliers terms of business that need to be adhered to, not yours just because you are bigger
Insurancejon said:
And here in lies the problem. Big companies imposing their payment systems on smaller companies.
I'm guessing at the time of purchasing the larger companies rarely explain this to the supplier in advance of the work being invoiced.
Unless you negotiate otherwise, its the suppliers terms of business that need to be adhered to, not yours just because you are bigger
It's not actually a system that I agree with, but I think it's up to all parties to understand what the terms of sale and payment are going to be before committing to the sale. Ultimately if the big company will not be flexible with their payments terms you have the right to not sell to them, or charge more - it's all part of the negotiation. But everyone should be upfront, or ask the question rather than assume. (In fairness to the OP he did tell them what was required and it's a poor show they haven't respected this)I'm guessing at the time of purchasing the larger companies rarely explain this to the supplier in advance of the work being invoiced.
Unless you negotiate otherwise, its the suppliers terms of business that need to be adhered to, not yours just because you are bigger
I was led to believe (by my employer who might be biased) that it was the last terms of business to be issued where those that needed to be adhered too. Therefore Seller issues Quote (Sellers terms to be used as per quote) Buyer issues Purchase Order (Buyers terms to now be used as per PO) Seller issues Order Acknowledgment (Sellers terms now back to being used)
FYI - I always advise our suppliers to issue an order acknowledgement for this very reason, and so we have confirmation of any specific delivery requirements.
Also I'm leaving all this big business behind shortly and looking to set up on my own, therefore the shoe is very soon going to be on the other foot. poacher come gamekeeper
I'm currently mulling over what to do with the customer who owes me thousands for work done in October 2017...
Mileage varies, but if you're genuinely het up over a thirty day bill & it is a firm of two or three people, I'd be going round & knocking on the door. Face to face is a very good motivator but if you've written them off as a customer, then by all means, throw the book at them. Just make sure they've got money, no point throwing good money after bad.
Mileage varies, but if you're genuinely het up over a thirty day bill & it is a firm of two or three people, I'd be going round & knocking on the door. Face to face is a very good motivator but if you've written them off as a customer, then by all means, throw the book at them. Just make sure they've got money, no point throwing good money after bad.
Lexual said:
I sent the invoice as soon as they confirmed the order (3rd Jan 2018) and requested payment by Bank Transfer ASAP.
If the terms on your invoice were "ASAP" then you've done yourself no favours.Decide what your terms are to be and make them very clear to the customer prior to supply of goods/services.
State the terms on the face of the invoice along with the due date and make it very clear, don't hide them.
sgrimshaw said:
If the terms on your invoice were "ASAP" then you've done yourself no favours.
Decide what your terms are to be and make them very clear to the customer prior to supply of goods/services.
State the terms on the face of the invoice along with the due date and make it very clear, don't hide them.
I didn't literally put 'ASAP'.. I had put:Decide what your terms are to be and make them very clear to the customer prior to supply of goods/services.
State the terms on the face of the invoice along with the due date and make it very clear, don't hide them.
"Your 3 Roller Banners will be arriving today, the large outdoor banners are due to be with you on Monday.
Can I please ask that the invoice is paid by bank transfer today, payment is typically required before items are despatched."
I got an email reply saying she would arrange the payment, I was sent a Purchase Order PDF and what looks like a scanned copy bank transfer payment receipt that they maybe printed off, which at the time I thought looked suspect.
I had already despatched the products and sent the invoice, and on the invoice the payments terms state 'Due on Receipt' with the invoice date.
I'm calling them on a daily basis now, I'm just getting told it's different people I need to speak to, or they're in a meeting, or out.
The person who placed the order with me actually answered the phone today, I told her who I was and that I'm chasing the payment and not been very happy that I've been completely ignored, she started telling me someone else needs to deal with it, but I was told she is the person to speak to and she deals with the accounts.. during me talking to her the phone just went silent for a minute and hold music came on.. I waited for a few minutes, hung up.. called back, and of course nobody answers.. call again half hour later, some other bod answers and guess what.. nobody is there now.
Disclaimer - I have had no experience using them - but for £3 (+VAT) you might as well outsource the Letter before Action to https://www.thomashiggins.com/
In my professional capacity (as a solicitor) I had a client receive some of their letters - if the recipient has no defence to payment then they should pay up assuming they can afford to. If they have issues with the product delivered, this will flush it out sooner rather than later.
In my professional capacity (as a solicitor) I had a client receive some of their letters - if the recipient has no defence to payment then they should pay up assuming they can afford to. If they have issues with the product delivered, this will flush it out sooner rather than later.
I do print too - on our invoices it states the goods remain ours until paid for - go and pick them up in person if no joy soon.
Altho I do agree you have to be patient - I once did a 3k favour for someone in a group of companies and it took over a year to get paid... but we did eventually.
Altho I do agree you have to be patient - I once did a 3k favour for someone in a group of companies and it took over a year to get paid... but we did eventually.
Gassing Station | Business | Top of Page | What's New | My Stuff