Advice needed - unpaid invoices, next step?

**dancingbutterfly**

Hi guys,


I need some advice please I have a small business doing domestic cleaning for homes and lots of communal areas in new flat developments.

Since november I have been doing a lot of work for one property management company (A friend is a property manager who got me the work) Everything was going smoothly, every invoice I sent was getting paid on time apart from one job.

It is a fairly new development and they were still waiting for the money to come through from the solicitors so I said id wait, she said it would be before christmas, but nothing ever came through.

While every fortnight the 'debt' was rising by £90...she did manage to pay one invoice for £90 but now they owe me £450 just for this one job..

furthermore, I also do other developments for them, which were getting paid on time while my friend was still at work (she's gone on maternity leave and just had her baby) but they're not getting paid at all and they havent paid me anything for 6 weeks now.

All the other jobs now amount to £159 so a total of £609

My friends work is being done by a senior property manager which you think would mean he's even more on the ball but not so...

My invoice terms are payment within 14 days which obviously isn't being adhered to.

I did call last friday and spoke to an admin who deals with invoices but didn't have a clue when things were going to be paid. When my friend was there, invoices were sent on a monday and they would be printed off and authorised and paid on the wednesday.

My question is (sorry for all the bumf!)

What is my next step in getting my money? Im a bit ticked off and feel like they're taking the mick tbh. Is there some form of letter I can send?

Ive never pressed them before as its a lot of money for me and I dont want to ruffle feathers but I feel like saying Im not going to do a scrap more work for them until im paid.

I only have a small business its just me and I work pretty much full time so rely on this money a fair bit.

thanks so much in advance

steve1980

Stop doing work for them now until your invoices have been paid!

The next course of action is to issue a "final demand" with a notice period (7, 14 or 30 days). If there is still no luck then you would have to start court proceedings.

Firefox1975

you are going to get stung for this money.Stop working for them now, immediately.

The only thing you can do is phone up and tell them you are coming to collect a cheque, they will probably say it is not ready but that is ok, tell them you will sit and wait in reception.

you need to keep doing the above every day until it turns up.

2 things may happen, They will crack after 2 days and give you your money, although the work will almost certainly end.

if they don;t ,go to a small claims court,you will probably find the company is dissolved before you get paid out.

This is an unfortunate situation of all small companies.

Do you use any of their equipment/materials ? keep it.

**dancingbutterfly**

Thanks for your replies, they are a well established company and have been around for years.
I use all my own equipment and materials. I don't want to lose they're business as it's very good money when I get it.
I sent a polite email this morning detailing all invoices I'm owed, how much etc and saying it's unacceptable to drag it on like this.

I've had no reply...I think I'll send a final notice and see what happens.

I think that they think because we need the business they can so what they like! If it was the other way round it would be s totally different story...

chalkie99

**dancingbutterfly** wrote: »

they are a well established company and have been around for years.

So were Woolworths and hundreds of others. It doesn't mean much in the current economy I am afraid.

As others have said, stop working for them now and cut your losses.

A couple of things -

You are working for the property management company. They are the ones you are contracted to and who owe you the money. Do not be put off the scent by stories of solicitors not paying them. Firstly, it's not your problem and, secondly, they will no doubt be making their own mark up on your charges anyway.

Also, alarm bells ring for me when you say a manager is now doing your friends job. They clearly had plenty of notice of her maternity leave but it looks to me as though they cannot budget for a replacement.

It seems like this firm might be struggling and your best bet is to seek new contracts elsewhere now.

podperson

Send them a final notice with a written statement of all invoices owed and say if you don't receive payment by xx date then no further work will be carried out and you will be taking legal action. If you're emailing it make sure you send a written copy as well recorded delivery. I usually end up doing debt chasing for the company I work for and it's amazing how many times the magic words 'legal action' do the trick when I've been chasing them politely for months beforehand and getting nowhere.

paddyrg

Yes, look for new contracts elsewhere - always wise - but don't give up on them yet necessarily. If your friend's boss is running the show, it is likely he's busy with his own job and frankly giving away money is the least of his priorities - so you just need to help him re-prioritise it as nicely as possible. And whilst £600 is a big deal to you, it is a trivial amount to them, so assume it is just generally trivial to everyone.

Turning up at the office in your scruffiest work clothes and mop and bucket (or similar - just so you take up space and are very visible) and saying 'no, it's ok, I will wait in reception until for your cheque' will help make you visible and a problem that can easily be sorted. Forget all their 'internal procedures' nonsense, if they faff about, tell them cash is also fine, but be visible. They won't want clients having to climb over you and your mop in reception, they won't want the receptionist to have to listen to your asking in public if they are 'going to pay (...or are they struggling to pay their bills?)'.

But let everyone save face - always give them a route to save face and pay you off casually - then you can discuss how to avoid the same problem coming up again? Would they like to pay cash in advance in the future?

**dancingbutterfly**

chalkie99 wrote: »

So were Woolworths and hundreds of others. It doesn't mean much in the current economy I am afraid.

As others have said, stop working for them now and cut your losses.

A couple of things -

You are working for the property management company. They are the ones you are contracted to and who owe you the money. Do not be put off the scent by stories of solicitors not paying them. Firstly, it's not your problem and, secondly, they will no doubt be making their own mark up on your charges anyway.

Also, alarm bells ring for me when you say a manager is now doing your friends job. They clearly had plenty of notice of her maternity leave but it looks to me as though they cannot budget for a replacement.

It seems like this firm might be struggling and your best bet is to seek new contracts elsewhere now.

thanks chalkie, another property manager was doing her duties until he left! i dont know if he was sacked or left of his own accord so its being passed from pillar to post with nothing being done! They 'say' they are getting a replacement but we'll see.

podperson wrote: »

Send them a final notice with a written statement of all invoices owed and say if you don't receive payment by xx date then no further work will be carried out and you will be taking legal action. If you're emailing it make sure you send a written copy as well recorded delivery. I usually end up doing debt chasing for the company I work for and it's amazing how many times the magic words 'legal action' do the trick when I've been chasing them politely for months beforehand and getting nowhere.

Im going to call them now and speak to the person 'dealing' with my jobs and if its not sorted then I will do this. Id hate to lose all the work though. Thankyou

paddyrg wrote: »

Yes, look for new contracts elsewhere - always wise - but don't give up on them yet necessarily. If your friend's boss is running the show, it is likely he's busy with his own job and frankly giving away money is the least of his priorities - so you just need to help him re-prioritise it as nicely as possible. And whilst £600 is a big deal to you, it is a trivial amount to them, so assume it is just generally trivial to everyone.

Turning up at the office in your scruffiest work clothes and mop and bucket (or similar - just so you take up space and are very visible) and saying 'no, it's ok, I will wait in reception until for your cheque' will help make you visible and a problem that can easily be sorted. Forget all their 'internal procedures' nonsense, if they faff about, tell them cash is also fine, but be visible. They won't want clients having to climb over you and your mop in reception, they won't want the receptionist to have to listen to your asking in public if they are 'going to pay (...or are they struggling to pay their bills?)'.

But let everyone save face - always give them a route to save face and pay you off casually - then you can discuss how to avoid the same problem coming up again? Would they like to pay cash in advance in the future?

Thanks for your helpful post paddy. They're office is a room in a large building where no public go. They are just a block management company but have a lot of developments to manage. Invoices are always paid via bacs so will ask about a cheque saying solicitors problems are not my problems.

I really don't want to lose the jobs but if im not getting paid then there's no point! I know when/if my friend goes back to work it will all be fine but she may not go back!

Good idea about avoiding it in future.

If my terms are 14 days and they're's are 28 do I have to adhere to they're's?

Many thanks everyone

**dancingbutterfly**

Right, Ive just spoke to an admin as the person i needed to speak to is unavailable and they told me I should hopefully receive at least half of what im owed next friday.

Apparently, they're accounts department is in India! so invoices are coded and sent to india for processing! Does that sound strange?! Why would they do that? Im sure my friend has mentioned India before so it must be true!

So i'll call thursday and see what was paid and go from there. I should really send a final notice but £150 of work is only from the last 2 weeks so i'll give them a bit longer.

greyteam1959

**dancingbutterfly** wrote: »

Right, Ive just spoke to an admin as the person i needed to speak to is unavailable and they told me I should hopefully receive at least half of what im owed next friday.
Yes I thought they would use these 2 excuses.....been used for years they have !!
Apparently, they're accounts department is in India! so invoices are coded and sent to india for processing! Does that sound strange?! Why would they do that? Im sure my friend has mentioned India before so it must be true!
Accounts department in India.......they are pulling your plonker !!! Fairly original though !!
So i'll call thursday and see what was paid and go from there. I should really send a final notice but £150 of work is only from the last 2 weeks so i'll give them a bit longer.

I would get you Final Notice out now & quickly !!
Or go round with 'friend' & ask them for CASH not a cheque.

I really do hope you get your money mate. I just hate seeing hard working small businesses getting taken for a ride.
HTH

redmalc

A Big Business with a accounts department in India and they will only pay half of £600 by next Friday,I am sorry but i think you need to act quickly before you are Shafted