Non payment of bill

WaxiesDargle

Hi

I am a sole trader and this is my first year in business...I have carried out work for a client (hotel) and after two invoices and an email they are not responding...it is a bill for £500

the work was done in September..could anyone let me know of their experiences with companies not paying on time...and what is a reasonable amount of time to wait for payment...I put 30 days on my invoice

If the worse comes to the worse, any advice on small claims courts etc. Thanks

JonathanA

Have you spoken to them to find out why they haven't paid you? Is it a large hotel that is part of a group or a small independent? Did you have a contract with them that clearly set out your payment terms?

I find that the best course of action is to send a statement at 30 days and if payment has not been received by day 35/40 (depending how busy I am at the time), I telephone the customer to ask them when payment will be made. I then follow that up in writing, stating that they agreed payment to be made by a certain date. If they are not happy with the work you have done, they have had time to raise that with you, and should have raised it at the time!

I think that 30 days is more than adequate for payment terms, but I know some companies don't pay until 90+ days. Keep on top of it and make sure they know you won't go away! A visit to them may also help...

Good luck

brightonman123

go to hotel at n inconvenient time (for them- lunchtime maybe?) and ask lodly at reception why they havent paid their bill..

or get in a court summons asap.

WaxiesDargle

No I haven't spoken to them yet Jonathan that is my next step after the new year....they are an independent hotel...I have done many jobs since starting and this is the first time this has happened....I have had many compliments for my work and the majority of the work I get is by word of mouth so I must be doing something right

maybe its the credit crunch or summat!

brightonman123

let me know if you have ongoing need of a debt chaser (boo, hiss!)

bordercars

send them another invoice, with an attachment showing what your charges are for each month not paid and also for each invoice issued. why they think they can hold your money and earn interest on it is beyond me. get tough, its the only way to survive even if it means losing them as clients

slipp_digby

bordercars wrote: »

send them another invoice, with an attachment showing what your charges are for each month not paid and also for each invoice issued

how much interest do you think you will be able to charge on £500 using the statutory powers available?

as the above posters said. speak to their accounts department and ensure that the invoice isnt in dispute, and whether it has been authorised for payment, payment date for next cheque run or BACS etc etc.

document this, then make a final demand for payment, then send a 7 day letter if they dont pay with "court proceedings will be the result of not acting on this letter" there are templates on the better payment gov website.

then follow up with a small claims court if needed.

everyone is hanginf onto money for dear life at the moment.

bordercars

didnt think i mentioned interest. you set your own charges , as per banks. make them reasonable such as cost per hour to check non payment records, then time taken to issue new invoice , cost of envelope and postage, i go for £20 per invoice raised. its not added on the first reminder but lets them know you want your dosh. one final thing dont hang around after 30 days send it out first class and if required same again 30 days later. issue 2 reminders then warn of court etc.

greyteam1959

You say that this is your first year in business ???
I have been in business for over 25 years now.....
You should really have been chasing up this non payment ( or late ) an awful lot sooner that this.
The hotel trade are in my experience always bad payers although I don't know why cos they are a 'cash' business.

ukbill69

read: http://www.payontime.co.uk/legislation/legislation_main.html

covlass

We send a gentle reminder first 5 days after invioce was due, 10 days after 1st reminder has been sent we then send another letter. failing payments being recieved which isnt often a 3rd letter is sent 10 days later giving them a date which we expect to have recievd full payment by. Failing any response or payment a letter notifying customer of legal action is sent stating a date as to when you will start legal action. IF payment is still not recieved or no response has been logged we then go through small claims using MCOL (money claim online)
If you need any more help or want me to show you a smaple letter just ask
It's a good idea to have letters drafted and ready and keep ontop of late payments it's not often we have to send out 3rd letters or even go via small claims. But with things as there are at present we have a system set up and ready.