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Original poster

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

91 replies

alittlebitembarassing · 18/04/2022 11:41

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?

OP posts:
cakeorwine · 18/04/2022 13:06

I took a client to the small claims court. Didn't help his case as he had left me a voice mail saying how pleased he was with my work.

He paid up.

CharityShopChic · 18/04/2022 13:11

@drpet49

** 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.

Also as a self-employed person you KNOW when something is wrong. You KNOW how long it usually takes X or Y client to pay, and whether they prefer cash, or bank transfer, or paypal or whatever.

When all of a sudden that changes, you get zero communication and no payment, you just know you've been burnt. Agree with others, keep it professional and send a letter before action.

saleorbouy · 18/04/2022 13:11

Send a reminder at 30days and then follow this up with a letter 10days later confirming that the account is overdue and non payment will incur additional costs.
After 10days get your solicitor to send a letter requesting payment for an overdue account and add in that court action will be pursed if the demand is unpaid.
Refer to small claims or other debt agencies.

Riverlee · 18/04/2022 13:15

Small claims court. All very easy and can now be done online. There is a small fee but if (when) you win, they have to pay. Once you’ve won, if they still don’t pay up, escalate the case. All very easy. We’ve done it successfully from an ex-employer.

Bubblesandsqueak1 · 18/04/2022 13:18

What was the payment date on the invoice to be paid by? Its normally 38 days someone has to pay, after 28 days you send a remainder email saying overdue, if still no payment its small claims court

fairylightsandwaxmelts · 18/04/2022 13:18

@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?
It doesn't matter whether OP has upset them or done a "less than optimal job" - the client still has to pay her.

They're then free to not use her again, or to leave a factual review stating why, but you can't just use someone's services and refuse to pay them!

saleorbouy · 18/04/2022 13:20

My friend's dad was a builder and a business man client of his hadn't paid for work done on their house despite numerous reminders.
A group of his family went for celebration dinner at the clients restaurant and had a huge meal with the adults drinking wine etc. and ran up a fairly hefty bill.
Once the bill was presented his father explained that the bill would be settled once they transferred funds for the work completed on the restaurateurs home. They left the restaurant without paying, the outstanding builders bill was quite promptly paid and his father paid for the meal the same day.

ExplodingElephants · 18/04/2022 13:28

I’m fuming on your behalf but agree with posters who say you need a paper trail. Ghosting is unacceptable and doesn’t look promising but two weeks also isn’t a very long time. I would do everything to the letter of the law to give you the best chance of getting your money back.

DesidaCrick · 18/04/2022 13:34

@DesidaCrick

Oh I agree, it isn’t grounds to just ignore the invoice.
Read the thread @fairylightsandwaxmelts
gwanwyn · 18/04/2022 13:36

When all of a sudden that changes, you get zero communication and no payment, you just know you've been burnt. Agree with others, keep it professional and send a letter before action.

This - she clearly trying not to pay so I'd start the legal stuff now - may well be enough to jolt payment from them.

Lunificent · 18/04/2022 13:42

No need to wait 30 days. Get the ball rolling now.

a1577 · 18/04/2022 13:46

Letter Before Action and Small Claims Court

Exactly!

SunshineCake1 · 18/04/2022 13:50

Why wait when she's already broken the terms ?Hmm.

Gonnagetgoing · 18/04/2022 13:51

I’d do as a PP says Letter before action and Small claims court. No messing around.

Did she give notice of terminating her contract if she had one with you?

Normally invoices are 30 days, are those your terms?

Gonnagetgoing · 18/04/2022 13:53

Just seen your terms are 7 days. Yes wait 30 days then LBA. Treat it strictly professionally, no exposing on Instagram etc.

BitOutOfPractice · 18/04/2022 13:56

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

So @Lunalae you had thought through every single possible scenario bfore you started your business and have never had a need to ask a question about business since? Plus, learning about the legal steps in theory is very different to actually dealing with it when it happens to you. So be nice eh?

Puzzledandpissedoff · 18/04/2022 14:00

she hasn’t the best reputation of keeping things professional

In that case it's even wiser of you to decide not to expose her on SM; someone needs to behave professionally and it might as well be you

Also agree with your decision to give it the 30 days and then send a letter before action. Make sure you follow through though ...

Puzzledandpissedoff · 18/04/2022 14:05

Why wait when she's already broken the terms ?

Because if it comes to a small claims court case claimants have to be seen to be reasonable, and someone's bound to say "Well, most companies take 30 days ..."

It's not terribly fair, but there's little point in OP making a case which could fall at the first hurdle and give her creditor a chance to say "See, I knew she was trying it on!!"

TheyCallMeJune · 18/04/2022 14:08

It's not someone who also does a podcast is it?

SamphirethePogoingStickerist · 18/04/2022 14:08

I am a sole trader and have once had a none paying client.

Look up Letter Before Action, you'll find lots of templates, send it now and follow up with MCOL, money claims online, which is what small claims court is these days.

Don't wait, just do it. She owes you, knows she does and can't argue that.

SolasAnla · 18/04/2022 14:12

@alittlebitembarassing

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!

Payment terms are credit is offerred for a maximum of seven days

Has she always paid within the contract term of 7 days or has she broken the contract terms and paid late?

What has been her payment pattern? Sometimes charting on the calender helps track her cashflow pattern.

As she has already decided she will not be using your service again I would not bother to hold off for the 30 day.

Decide if you are taking her to court or not and send her a final warning with an opening that if she needs to she can contact you to arrange a payment plan.
If she comes back she, great.

Is your output recoverable as in a physical item of use of IP etc?

Sarkymarky · 18/04/2022 14:22

TeaStory
OP good advice from TeaStory

C152 · 18/04/2022 14:37

@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.
30 days is not standard any more, although many large companies (i.e. employing thousands of staff) still do agree to these arrangements. Most small business owners have shorter payment terms, with many requiring payment as soon as the invoice is issued.
irishfarmer · 18/04/2022 14:40

I think you've had some good advice on here. In one place I worked I sent a few legal sounding letters demanding payment from clients before, there are plenty of templates online. Basically tell them they have x days to pay and if they don't you feel you have no choice but to take the matter to small claims court. I'm an accountant so not sure how legal those letters I sent actually were but they worked to at least get the ball rolling.

I think you're right not to slate them on SM, as tempting as it might be. I think it would only end up back firing on you

MyEasterEggs · 18/04/2022 14:50

Agree with waiting until it hits 30 days. 7 days isn’t long and it’s only been 14 so a letter before action at this stage does feel premature, as does chasing them on a few occasions before now.

I’m sure you feel a bit shaky given their change in behaviour, and are wondering if you’ll get paid at all, but try and put your energy into getting new clients while you wait for this person to pay. I’m sure they will.

FWIW I bloody hate folk who moonlight as wonderful, supportive business owners and are disorganised, unsupportive fuckwits who take advantage of people behind the scenes. Grinds my gears! Hang in there!

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