Client won’t pay me - what would you do?

[alittlebitembarassing]

I’ve been working with a client for the last three months and they’ve informed me they will no longer be working with me but that they had been very happy with the service and had seen fantastic results working with me. They said it was due to it being a new financial year and that they were looking at their various streams of revenue and needed to save in some areas. I understood and invoiced for the previous month’s work that I had undertaken. The client in question is quite a big Instagram personality who talks a lot about how she’s helping others... but she has completely ghosted me and my invoice since.

It has been two weeks and my emails have been ignored, my business has been unfollowed on Instagram (sounds childish but a lot of our clients come from seeing our work on Instagram as we use it as an extra portfolio), and the invoice has not been paid.

They are still going about their days being very active online but no matter who I email the final invoice just gets ignored.

It is a fair bit of money and the work was undertaken before they terminated our services.

How do I go about this? How can I be more firm about payment because I can’t afford for this not to be paid?

** Hmmmm, that doesn’t seem like a very long time to pay an invoice.

What does it say in your terms and conditions? Even if it is ‘payable on demand/payable on invoice’, two weeks isn’t really that much. **

^Not really. 2 weeks is plenty of time. No excuses.

At this stage I'd write to her along the lines of:

"I'm sure it's an oversight on your part but at this stage my invoice remitted on (date) remains unpaid. Please could you attend to this as soon as possible, but at any rate before the end of the month. Failure to do so will leave me with no alternative but to take matters further.

You have 14 days from the date of receipt of this letter to make payment. I look forward to hearing from you. "
Then you can go to the Small Claims track of the County Court to make a claim.

@Emmelina

A much more firm email. Along the lines of “we’ve requested payment for £X amount for services YZ and as yet this has been unpaid. If payment is not received by X date, this will be passed along to a debt collection service” Then follow through. I’ve taken wording from a letter from a tradesman whose invoice slipped through the landlord’s net a couple of years back (that they promptly settled!)

This, no need to prolong the process.

Don't listen to the passives, always be firm where money is concerned.

Two weeks isn't a very long time to wait for an invoice, I'm surprised you have sent more than one message in this time! Perhaps you are coming across as hassling them. 30 days are standard payment terms.
First, you need to check that your invoice stated payment terms, and these should match what was agreed before you did the work.
Second, if you didn't agree anything (then you have been foolish) then follow up asking for payment within 14 days, which, including the two weeks they've already had the invoice allows a reasonable amount of time.
Third, at the end of that period send a final warning before pursuing legal action in small claims court - this one should be sent recorded delivery by post.
Fourth, do not shame them on social media, that would be defamation and will reflect badly on you. At this stage they have done nothing wrong.

Is the client operating as a business or just an individual as the procedures are slightly different? If they are a private individual there is certain wording you have to use and information you have to enclose.

What are the terms of your contract? You had a contract didn't you?

30 days might be standard payment terms for some businesses but the client has to adhere to whatever terms they agreed when engaging the OP. That could be 30 days, 7 days or even same day.

Payment terms are within seven days. I had trouble before with 30 days (previous clients) so changed it to seven days and it is clearly stated both in T&Cs and on invoices.

They’ve always paid before so that’s why I’m concerned that they’re not going to pay it, especially as they have ignored my follow ups (which I’ve been really nice in).

I wouldn’t expose on Instagram because I know that would backfire, and she hasn’t the best reputation of keeping things professional (so I’ve learned along the way with a recent fallout she has had).

I think I’ll wait the 30 days and then follow up with a letter of action. So frustrating!

Send a final demand now, then follow up with letter before action

You’ve had good advice on timing and wording already. If they have unfollowed you and are avoiding messages, are you absolutely sure you haven’t upset them or done a less than optimal job?

Some clients are a nightmare and can’t seem to give constructive feedback, so honestly not trying to make you feel bad!

@DesidaCrick

You’ve had good advice on timing and wording already. If they have unfollowed you and are avoiding messages, are you absolutely sure you haven’t upset them or done a less than optimal job?

Neither of which would be grounds for non payment. If they are not satisfied with the job OP has done they need to specify that, explain why and give OP the chance to either rectify it, or dispute the claim.

Not just ignore the invoice.

Don’t wait 30 days if your terms are 7 on invoice. Just get on and send letter before action and issue. If she’s in financial difficulties better to be at top of queue.

Oh I agree, it isn’t grounds to just ignore the invoice.

Presumably you have encountered non paying clients in the past? Or are you a very new business?

All the best op

If your terms are 7 days, send one polite reminder now. Then at the one month mark, start legal action.

Why wait 30 days?
Letter before action.
Court.

@perimenofertility

Two weeks isn't a very long time to wait for an invoice, I'm surprised you have sent more than one message in this time! Perhaps you are coming across as hassling them. 30 days are standard payment terms. First, you need to check that your invoice stated payment terms, and these should match what was agreed before you did the work. Second, if you didn't agree anything (then you have been foolish) then follow up asking for payment within 14 days, which, including the two weeks they've already had the invoice allows a reasonable amount of time. Third, at the end of that period send a final warning before pursuing legal action in small claims court - this one should be sent recorded delivery by post. Fourth, do not shame them on social media, that would be defamation and will reflect badly on you. At this stage they have done nothing wrong.

Two weeks IS a long time if there is no agreement to longer terms. For small businesses, 30 days isn't standard at all. All that matters is what was agreed at the start of the business relationship, what's in the T&C's etc. Many small businesses have "payment by return" as the default in their T&Cs, so two weeks is plenty to start debt collection procedures.

As a freelancer/business person yourself... didn't you learn how to handle this when you set up?

I thought it was sort of part of the whole "I'm going to work for myself" thing that you educate yourself as to what the legal steps are for non-paying clients.

Don’t just email, send to them in the post a print out of your chasing emails and the invoice. Advise that you’re concerned the invoice is now past due and you’re concerned your emails are no longer getting through as all previous invoices had been settled in a timely manner. Thank them for the opportunity to work for them in the past and that you look forward to receipt if payment.

Then wait two more week, which would be 30 days, then send them a letter before action by post and a copy by email

I do 14 days to pay invoice. If not, 10% of the bill is added to following months invoice.

I've had to chase a fair few, fortunately all have paid so far.

I would send polite reminder of your terms and that after 30 days you can charge statutory interest. Then an LBA and the small claims court if that doesn't work.

www.gov.uk/late-commercial-payments-interest-debt-recovery

If your terms are 7 days then just get the ball rolling legally now, why wait.

My payment terms are upon receipt of invoice, which is issued immediately via email.
Same day payment for domestic, 30 days for businesses.
No exceptions, tbh not really had that many issues in 18 yrs of business.
A few idiots who were playing silly buggers.
Two options court or private debt collectors for the more stubborn non payers.