Unpaid Invoice query

HAVEFAITH

Hello,

I am chasing an unpaid invoice. Of course its now overdue. Could I get some guidance what happens next. Letter before legal action etc .. whats the procedure there? Notice, timing etc?

Thanks

InsideInsurance

HAVEFAITH wrote: »

I am chasing an unpaid invoice. Of course its now overdue. Could I get some guidance what happens next. Letter before legal action etc .. whats the procedure there? Notice, timing etc?

What does your contract say about payment terms?

If it says nothing then you need to give them a reasonable timeframe which will possibly be vary by the size of the customer and the invoice. Large corporates tend to have much more governance to get things paid and backlogs so take longer than personal customers etc.

If the period in the contract has passed or there is no period mentioned and a reasonable time has passed then send a letter before action giving them a reasonable time to respond, again factoring in their size. If that passes without response then check they still exist etc and assuming they do issue proceedings

HAVEFAITH

InsideInsurance wrote: »

What does your contract say about payment terms?

If it says nothing then you need to give them a reasonable timeframe which will possibly be vary by the size of the customer and the invoice. Large corporates tend to have much more governance to get things paid and backlogs so take longer than personal customers etc.

If the period in the contract has passed or there is no period mentioned and a reasonable time has passed then send a letter before action giving them a reasonable time to respond, again factoring in their size. If that passes without response then check they still exist etc and assuming they do issue proceedings

Hi, A 30 day notice was issued mid August. Of course we are way past that now. I have email chased but now they've gone on holiday!. It's actually a family contact so I'm tad cheesed off to say the least. However terms and agreement was made. This is all new to me so what's next please? Thanks

Opinion

Are they a one off customer or a potential repeat customer?

HAVEFAITH

Opinion wrote: »

Are they a one off customer or a potential repeat customer?

One off now. I have been very up until now. but i have to be firm from now i feel

Opinion

HAVEFAITH wrote: »

One off now. I have been very up until now. but i have to be firm from now i feel

I only ask as if it's someone that you're going to develop a relationship with, and someone you want repeat/continued business with, it might be worth giving some leeway.

paddyrg

If they're on holiday nothing will happen until they're back, so breathe.

After 30 days you can start applying interest plus a charge at 8% + BoE base rate as SIMPLE INTEREST. Look on gov.uk for late payment for details of how to calculate.

I would then warn the company that you're going to have to start charging interest per the gov.uk site unless they can clear the invoice by the end of the week. Try to keep it amicable but professional. Threaten court as a last resort, it pretty much burns all bridges.

Next time with this client, get 50% (or whatever) in advance

robatwork

Exactly what paddyrg said - send a letter - tell them you will start to apply interest at x% commencing 18th October or whenever you feel comfortable with stating.

Then do it - send regular statements every week with interest.

If it's a family contact you should get someone in your family to point out to them informally that it is causing you hardship and straining family relations.