I have a customer who owes me a total of ��1495.00. They have invoices outstanding since May, June and July. They told me that they would pay me early September, but not had any payment yet. I have emailed them with friendly reminders for the last 3 weeks and they have not replied to any of my email asking if they are making payment. Should I take legal action to recover the money? I can get a free debt recovery letter sent out as part of my business account with Barclays. They are not a large customer - but are a local company that I have done business with for quite a few years as the business was set up by two of my old school teachers - so I know them personally. They were taken over last year and they have always been late paying since they were taken over. I know that if I send them a debt recovery letter that I probably won t get any more work from them. I need the money from them as I owe it to the Inland Revenue - who are chasing me for the money (I owe them ��1500 - which the outstanding amount will clear off), saying they will take legal proceedings if I do not pay them within 7 days. The only way I can pay the Inland Revenue is if I am paid my outstanding invoices.
Let s put it this way, a customer who doesn t pay his bills is not a customer worth keeping. If the Inland Revenue take action, you won t have a business for this customer to come back to anyway.Get tough about this. Companies with limited cash flow only pay up when they are forced to or when it s easier to pay and shut you up than keep making excuses. In all probability they are counting on the fact that because you know them personally, you won t push too hard for payment.Rule of Business no 5: He who shouts loudest gets his bills paid fastest.If you are shy about asking for money that is legally owed to you, you need to consider whether you should be self employed.
There s little chance you ll get paid in 7 days, but maybe you could go down there and insist on a check.If they refuse, sue them.
