Ending Agreement with client

[Blueskies55]

Hi
I have been providing virtual assistant services to s CEO to a start up company since Jan. I did all of the due diligence and then raised an agreement/contract in which he signed and has agreement terms for a retainer agreement.

He had some leave and then I did. We agreed that it being a medium start up work would at times be ad-hoc. He then told me to send across the invoice after a month of service to him/his company. I sent it and now he's not responding to me. It's been 34 days since the invoice was sent. Last week Friday he apologized and said he would pay the invoice ASAP but it's now been another week and he's not responding to my messages where i have gently chased.

Should I just terminate and count that money as gone?! It's a shame as I would have preferred him being direct and saying there's an issue with a lack of work or funds, not just ignore me.

Any advice?

Did you include a payment term on the original invoice? I would be inclined to send a reminder requesting payment in the next 7, possibly 14, days.

Sounds as if there may be no money but that is a risk with a startup.
I would not do additional work but keep chasing

why are you giving 60 days credit?
Invoice should be on paid on presentation

Before walking away from the full debt see if you can get shares it way be worth nothing could have long term value.

The freelance agreement states the terms for invoice payment and he said he would pay last Friday and now he's disappeared again.

I am tempted to just end the contract and give my notice on it..not like I have any outstanding work for him and call it a day.

I would terminate contract, send another invoice stating that this already the X time you're seeking payment and remind to them pay fees in 14 days otherwise you'll seek legal action. It usually does the trick (I used to be a freelancer)

Also, do not send emails but a letter with special delivery, so he can't claim he "hasn't received your email". If he doesn't want to sign for it and returns it unsigned, you'll know that's trouble

If you have no work why terminate?
Just let the contract sit and keep chasing the money

💯 this he’s taking the piss. Terminate ans move on but you’ve every right to claim for the payment. How much are you talking? Small claims?

@RedRobin100 I don't think it would be worth it but it's a over £300 but I've worked for it so feel like it should be paid. Im going to terminate today

I honestly wouldn’t terminate. It achieves nothing other than to make it less likely that you will be paid. Obviously don’t do any more work, but I don’t think you need to put a termination in either words or writing.

@Aprilx im more terminating because I have other work coming in and him not responding properly for almost 4 weeks isn't the sort work environment I want. I'm more irritated that he's stringing this on a bit

So if he calls you say : "pay up and I will work as soon as i can withdraw my money from my bank account"
Get the money and send a new contract of 100% paid in advance
If He pays and you do the new work
If he has not paid you have the money from the old work.

No need to terminate your contract, he's unlikely to ask you to do any work whilst he owes you money and you're chasing him for it.

Get paid then terminate.
If you have to find one of those companies that chase for you and take a commission, I would (and have) do it.

what are your terms?

Don’t terminate until he’s paid!

I know it’s annoying but having to wait for money is not uncommon.

write a letter explaining exactly what you need him to do and that If the invoice isn’t paid in 7 days you’ll be adding interest. There’s lots of great template letters on the internet.

good luck!

Don't send payment reminders/statements by special delivery. The recipient can just not take delivery and ignore. Any agreement of this kind can have a notices clause that states when a notice, eg a statement/payment reminder, etc. is deemed to be delivered when sent by first class post. Just get proof of posting.

Download a letter before action and send it. That usually elicit a response

Special delivery IS proof of posting 🤦🏽‍♀️

I'm lucky to have a good solicitor who I also count as a friend and he wrote two letters for me for two different clients and voilà the money appeared in my account less than a week later in both cases. But yes, if you don't have a good solicitor there are companies who do this sort of thing for you

Hi all. He emailed apologizing and paid this morning.
Thanks for all the advice

Still likely going to terminate as prefer to not go through this again and have other options now

Thanks all xx

Get a deposit for X hours at a lesser rate so that you are never owed all the money. And he pays the invoice for any balance on the day you send it.

If he agrees you have a small income and he may recommend you to others

Great news and a lot of hassle avoided

Well done!

Have you considered using a system like GoCardless which takes the payment automatically rather than relying on the client to pay it iyswim.

some of the challenger banks like starling also Have systems like this.

and make sure your Ts&Cs are clear and watertight

🤦‍♀️ yourself. I think you're missing the point: sending someone something special delivery does not guarantee they will receive it, just that Royal Mail should deliver next day by 9am or 1pm depending on the service paid for and it's tracked. Anyone avoiding paying bills can simply not respond to a card left by the postie and after X number of days it gets returned to the sender. It's potentially just an additional expense for the person chasing payment and already out of pocket. Better to send by first class with proof of posting from a post office then it's deemed to have been delivered in line with the contract terms when there's a notices clause without paying extra for posting.

Anyway that's by the by - great news on getting the payment OP.

@WeAreTheHeroes Sure, Jan...

@BetsyBobbins Jan?