Am self employed, and was working on a job when the client called a halt due to their investor running out of money. I didn't have a contract, but do have emails confirming how much I was to be paid and a schedule of payments. I can prove I have done the work, that they were happy with work so far etc.
The total fee I was booked for was 12K. At the point that work was stopped I had reached the 4K point in the schedule of payments. I have been paid £200 of this 4 grand.
The people I am working for are not responding to my emails enquiring as to when payment will be made, but periodically contact me to say that they are working on gaining new investment. So far I haven't rocked the boat, in an effort to remain on good terms. I've been hoping that work resumes and I get to finish the job and get the whole amount. Also, it's a small world and I don't want to be thought of as 'difficult'. Stupid, isn't it?
However, it is not a good time to find investment, and I am on the brink of serious financial hardship, so I feel the time has come to attempt to force them to pay.
Am I likely to be entitled to the full 12K, or just the 4 that I had invoiced for up until that point? What do I do to make them pay up?
Go for the work you have done. Have you billed it - clear invoice with payment instruction and payment terms? Have you sent regular reminders, stating the amount, the number of days overdue - in writing. Have you sent a recorded delivery request for payment, stating that after 90 days from date of invoice you will have no option but to go to the small claims court. As soon as the bill hits 90 days, go to the small claims court.
There is no goodwill in non payers.
Have you checked out the client staff on linkedin, duedil etc etc - make sure you know exactly who you are dealing with.
Oh yeah, and if they are a Ltd Co, the other alternative to threaten is a winding up order.
I'm afraid I (having been VERY badly burned) do not believe all the 'alternate investor' crap. If their business model was good, the original investor would cough up. You arrange work to be done, you pay for it, you take the risk, not pass the risk on down the line.
Thanks. Yes, they are a limited company, that's interesting about a winding up order.
Without wanting to completely out myself, someone from a regulatory body has told me that they had a commitment from the original investor that was safe to proceed with, hence me being as understanding as possible. However, my position has considerably hardened, you're absolutely right, why should they just pass it down the line? I've paid office costs, childcare etc and now we're about to default on our mortgage. I'm so stressed and angry.