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Not being paid...(4 Posts)
I took on a new client in mid May, agreed a project and got a 'signed off' (via email) proposal for the work which included my terms of payment (monthly invoice for hours worked). Project is due to last 3 months.
At the end of month 1 I invoiced for 2.5 days work as that is all I had done at that point, I did this mainly as 'security' that I would be being paid something. Invoice stated payment to be received within 14 days.
Since then I have done 5 more days work on the project which will be invoiced alongside any further days at the end of June (as stated in proposal) but as I haven't yet been paid I am wondering what to do?
I am planning to send a friendly reminder email today but wondering if I should pause all work on the project until payment has been received. There is a deadline to hit (their deadline) however I have other work on so would not be twiddling my thumbs.
Until now all my other clients have paid on time (or at least told me it would be late) so I am not sure how to deal with this. The work I am doing is mostly unseen by the client as yet (although have attended various meetings etc) but they haven't 'got' anything from me as yet so if they don't pay they obviously won't be getting the work.
Any tips on how to handle this? Payment is currently 7 days late.
Send an email to state that as payment is now overdue you will be ceasing to work on the project and shall begin debt recovery claiming a daily rate of 8% above bank of England base rate until such time as the debt is repaid. I would make the debt recovery section sound as though it was proforma and then add something like this to the top and bottom paragraphs:
"I hope you're well, I know you are under a lot of pressure with this deadline coming up and I'm sure it's just an oversight but I have yet to receive payment of my invoice in line with our agreement. I know things are busy for you but can you please look at this as a matter of urgency.
"proforma debt chase"
Like I said, I know you are really under pressure for this deadline to be met but I won't be able to carry on any more work for you until payment is made. Even if payment is received soon, I can no longer make any guarantees with regards to the rest of the project until we have made an agreement regarding this outstanding payment.
Or something to that effect. Basically the later paragraph is to protect you from downing tools now, being paid at the end of month two and then having to do work from month 2 and 3 in month three to still meet the original deadline.
I sincerely hope you have more details than just an email address to allow you to pursue the debt. Perhaps also consider using an escrow company and ensuring that the monies are in the escrow immediately before you continue to work on this project.
Thanks AnnieOH1, yes I have all the company details. I have sent an email and the MD instantly replied saying it is being chased today with finance. I have no major concerns about the company paying me (else would have asked for an upfront fee) I just find it annoying when people pay late and still expect you to hit their deadline! If there's no confirmed payment date today I will be downing tools as you suggest and informing them as you state above.
Cool, it sounds then as though it probably is just an oversight, but I certainly wouldn't do anything further without that invoice being paid. xxx