[Prestige1]

 I have a non-paying customer, private house owner owes 3 cleans £162 have sent letters etc now I need to get tough! whats my best route? small claims court? whats your thoughts? many thanks, kind regards Phil

[AuRavelling79]

Go to their door and ask what the reason is. Preferably with a colleague to act as a witness. Go early when they are going to work.

[Simon H]

Hi there
I agree with Malc that this should be your first option

Then go down the legal route

Get your papers from the court fill them out then take a copy round so that he knows what you are doing itmight promote payment

Do you have any satisfaction certs or anything signed by him that the work has been carried out??
Just the receipt of court papers can be enoiugh  not many people want a ccj plus he will have to pay the court fee as well

Best of luck

Simon

[Jan K]

I had one like that recently. It was only for £90.00 but my terms state payment by return and within 14 days otherwise late payment charges and interest occur........

Anyway it went like this......invoice sent........7 days later sent reminder letter stating terms and late payment info.......day 10 rang customer, advised about late peyment charges etc was promised a cheque in post.....day 14 sent 2nd payment reminder adding £10.00 later payment charge and interest accruing at a daily rate of 12.75%, also rang them to say it was on way and discovered they were having money problems (no!!), said would waive £10 late payment charge providing payment was received no later than day 21. Day 20 receives cheque for full amount PLUS late payment charge (this was last Thursday....now waiting to see if chq bounces (if it does shall insist on cash plus all charges due to present). Had the letter ready threatening with small claims court!!!

That was the first time in a year of trading that I have resorted to chasing to that extent!!

[Prestige1]

Taken this chap down the court route, finally he has sent his cheque plus court cost, result
Phil

[garyj]

Jan, how did you come up with a daily rate of over 12%, are you sure you have that right? That would  be an APR of millions  and would never stand in court. It worked though this time, anyone who looked  into it would have fought and won!

[DP]

 Your allowed 8% above base rate, unless it has changed in the last 12 months or so. Base rate at this time is fluctuating at around 4% +. It does stand up in court although often negotiated.

[garyj]

Not as a DAILY rate though surely

At those rates Jans £90 debt would be worth over £3,000 after only 28 days.  By this logic a £1000 commercial debt paid one month late would be worth over £30,000 and by the end of the year MILLIONS, yippppeeee we'll all be rich in no time.

( by the end of day 60, you'll be a millionaire)

[ex cleaner]

Pour nitromours on his car. won`t get ya money but probably satisfying!!!

[*Chris Browne]

I would say dont mess about, small claims court. you can do it online

http://www.is4profit.com/businessadvice/smallclaimscourt/index.htm


chris

 

[DP]

Gary I wish 

Interest calculation (if I remember it right)

e.g

The amount £90 x 12% x 28 (days) divide 365 = £0.82p

Sorry mate looks like we will have to keep working for now 

A helpfull link with example letters etc
http://www.payontime.co.uk/collect/collect_letters_post.html

Another little accountancy sum to work out (crude) profit in %:
sale price minus cost price = difference.
difference x 100 divided by cost price = profit %

[Jan K]

yea that's the way to calculate it, anyway I've dropped the daily rate charge and apply a £10.00 late payment fee now. Too much bother to work out the daily rate for the sake of a few pence!

Jan

[Mrs Nicholls]

Hi what happens if you have sent invoice, 30 days have passed, you send letter on day 35 to remind, and day 37 you issue £10 late payment charge, then they still don't pay, do you charge 10 per month or per 30 days?