Chasing an Unpaid Invoice by a USA Company

BlobbyJogger

Hi Everyone

I'm new here so sorry if this is posted in the wrong place, but I'm hoping someone can help me.

I am self employed in Television production. Earlier this year I was invited to do some work by a New York production company who were coming to the UK to do a few shoots. I was personally recommended to this company as I've been doing this kind of work for over 18 years, and as it sounded like an interesting project, and the person that recommended me seemed to rate the NYC company, I jumped on board.

It all went very well, and we had a great shoot, with everyone returning to NYC full of smiles, saying that they were coming back to the UK later in the year, and would give the whole crew a call then, as they wanted to work with us all again. We were all told to send our invoices by email as soon as possible, and that they would be paid immediately.

I sent my invoice a couple of days later, after doing a small amount of follow up work that had been agreed in advance (including sending and paying for a FedEx) with my standard terms of payment being within 30 days from date of invoice.

After 30 days I hadn't been paid, so I sent a polite email to the producer I had worked with, asking if they would be kind enough to look into it for me. I received a very abrupt reply saying that they were having trouble with their banking permissions, but that payment would come through shortly. Another week later and still no payment arrived. It's now a further 3 weeks on, and I still haven't been paid. Despite the emails between us being very polite, I'm no closer to receiving payment. As they are a USA company - an LLC - taking them to small claims is going to be difficult.

Does anyone know of any way I can register them as having debts in the UK as a company, so that when they return to the UK they have to make payment for any outstanding invoices before they are able to enter the country (which I understand is within the next few weeks - as I've been asked about my availability again) or any other means of getting this invoice paid. I don't want to work with them again after this, but don't really want to write off the debt. It's for less than £1000, so I don't really want to get solicitors involved either as that would become too expensive...

Any ideas?

Thanks
BlobbyJogger

Zazen999

What were the payment terms of your contract?

BlobbyJogger

My standard terms,which are on all invoices I send out are:

"Payment is due within 30 days of the invoice date.
We reserve the right to claim statutory interest at 8% above the Bank of England base rate for late payment in accordance with the Late Payment of Commercial Debts (Interest) Act 1998."

I work through my own Ltd company, and have done since 2006. All work is agreed in advance through the company for my services.

I've never had a problem with any company not paying before. But because this is an American company - an LLC - it makes it a bit more unusual for me.

Thanks

Zazen999

Did they agree terms BEFORE the invoice; I can write on an invoice that I want my money to be presented on a silver platter by Brad Pitt in tight fitting shorts; it doesn't mean anything.

What did your contract say? The one that they agreed to before any work was done?

BlobbyJogger

There is no official contract as such. I'm freelance and work by personally recommendation often at the last minute, so contracts rarely get provided by the people I'm working for, nor purchase orders for that matter. It's not right, but it's how the business works, and isn't regarded as unusual.

That said, I have an email discussion between them and myself from when I was asked to do the work, asking what my daily rate was, and what my payment terms were. The company in question agreed to them in writing and confirmed me for the job.

As I say, I've been doing this 18 years and I've had to chase late payments before, that really isn't the issue. This is a very specific question relating to a company in the USA registered as an LLC, which I beleive changes the way I can go after them for payment.

I've heard about some way of reporting them so that they have to pay any bad debts before returning to the UK to do any other work, and would like some infomration about that if anyone knows of any.

thanks

Zazen999

Excuse me for asking; but if you haven't got a contract, then how would you prove that the work had been done in order to report them for these bad debts to ensure that they couldn't return anyway?

[Besides, if you have given them terms and conditions and they agreed by email, then that IS a contract...]

Hammyman

BlobbyJogger wrote: »

There is no official contract as such. I'm freelance and work by personally recommendation often at the last minute, so contracts rarely get provided by the people I'm working for, nor purchase orders for that matter. It's not right, but it's how the business works, and isn't regarded as unusual.

I bet it isn't regarded as unusual for those employing the services of others. Makes proving you're owed the money pretty damned hard to do.

inmypocketnottheirs

LLC just means limited liability corporation. The same as Ltd.

Why not google a debt collector based in the same town, then write giving them 7 days to settle or action will be taken and costs added.

Just because they are in the US, treat the same as a UK debtor.

BlobbyJogger

Thanks for all the comments.
After other members of the team (Cameraman, Assistant, Lighting Director, Producer) also started chasing payment and getting a bit miffed with the whole situation, we grouped together and had a local attorney send a letter on our behalf. Resulted in an email to us all at 8.30pm on Friday night saying the bank transfers had been made.
Money isn't in the account yet, but we're all keeping our fingers crossed.

inmypocketnottheirs

BlobbyJogger wrote: »

Thanks for all the comments.
After other members of the team (Cameraman, Assistant, Lighting Director, Producer) also started chasing payment and getting a bit miffed with the whole situation, we grouped together and had a local attorney send a letter on our behalf. Resulted in an email to us all at 8.30pm on Friday night saying the bank transfers had been made.
Money isn't in the account yet, but we're all keeping our fingers crossed.

Good result!

If the transfer was made on Friday, then it should be showing in your account Tuesday or Wednesday this week latest if sent by SWIFT transfer.

It may be a good idea to ask how the payment has been sent.