Collecting a debt off a large developer

B

Blackhorse B

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hello

i did a plastering job for a large enough developer, in excess of 10K i issued the invoice at the end of september . he said originally it was to be paid on the 15 oct, then said after i called said it needed to fall between 30-60 days due and would be payable on 15 nov now he's saying 30 nov.
Is this standard practice? or does this sound like legal action is needed?
any advice on collecting the debt

Cheers
 
Mostly it depends on what was on your invoice - i.e. did you say payment within e.g. 30 days? Presumably he is putting off payment for as long as possible - because of cash flow issues. You have to make a judgment call - do you get heavy handed and ask a solicitor to write a letter so that (possibly?)developer knows your serious and pays you ahead of others or do you let it lie and just send weekly reminders in case its a once off hiccup and you'd like to get work off him again?

If its not paid by Christmas, in any event, you probably should see a solicitor.

mf
 
I understand where you are coming from.

I worked in an office once where a large portion of work was to larger type developers. They were an absolute nightmare to get paid from. Exactly the type of thing you are saying. We always did eventually get paid though.

Before you send a Solicitors letter, I would send a letter by registered post requesting payment within the next seven days, after which you will need to refer the matter to your Solicitor for collection.

I would wait till 23rd November to send it, so you will know then if they do intend to pay at month end, or are going to try to string it out for longer.

I still issue seven day notices to some of our clients now(no longer in building sector) and it really is a good way of determining if they are going to pay, or if they really do need to be referred on.

As mf says, it also depends on if you want to obtain more work from them in the future.
 
do you want work from him again if so , i would just call around regularly looking for your money . at least he will put you at the top of the list then and hopefully give you more work in the future when things turn around. if you dont intend working for him again its time for solicitor before xmas
 
hi
thanks for the advice, mostly i work for/with guys i know and dont have this issue so its a real pain. i wont be working with this developer again its just not worth it.
yeah thats sound like good advice about the 7 day letter, i feel they will pay but they are so elusive and they always put this poor sap on to deal with it while the financial controller hides away.

thanks anyway
B
 
Blackhorse B said:
...i wont be working with this developer again its just not worth it...
Click to expand...

Since you won't be working with him again you could go down the Latepayment legislation route...

Try this link for an outline of what and how...
[broken link removed]

If nothing else it may make him pay a little quicker. The rates at ECB +7% makes late payment costly. And there is the added bonus for you that you can follow up on the costs of for 'recovery' too. Don't know if it has worked for others but you can only try!
 
Couple of things :-

1) End September invoice to now is not an excessive amount of time for a large developer, especially in current climate. However you need to make your terms of credit very clear to them.

2) Whatever about anything else make sure that they have a Relevant Payments Card for you ( assuming you have a C2) or next thing the payment will come net of 35% RCT. Not a problem as you get credit for it but a cashflow issue to you nonetheless.
 
Crugers said:
Since you won't be working with him again you could go down the Latepayment legislation route...

Try this link for an outline of what and how...
[broken link removed]

If nothing else it may make him pay a little quicker. The rates at ECB +7% makes late payment costly. And there is the added bonus for you that you can follow up on the costs of for 'recovery' too. Don't know if it has worked for others but you can only try!
Click to expand...

That is a very useful link. Must bring it into my collection letters! Cheers.
 
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