small business debt advice

[yodamonks]

hi i hope someone can help me, i run a small gardening business and i did a large job for someone, sent a few invoices but they never paid. this has gone on 2 1/2 years now and they are refusing to pay, i keep sending invoices in shear desperation but they now say they will seek legal advice as it has gone on so long and they now don't want to pay up as they have moved and no longer enjoy the garden i made for them. i am qualified in gardening but the business side of things i have no idea about and my question is:what are my rights?how do i stand for claiming the money back and how would i go about it? i know its been a long time but it seems like yesterday when you are so busy every day. any help much apprieciated.

[Harley]

If you have been asking for the money and have raised a proper invoice then take them to Court. It's a simple proceedure go to your nearest local County Court get the form and fill it in. They can offer a defence maybe the job wasn't up to scratch, you overcharged, they may even say they paid you in cash or you may drop lucky and they pay up.

In my experience they will have no money but may offer to pay you over a period of time. If you have to go to Court you will have the chance to put your side of the story and if you are honest and can produce some references from satisfied customers you should win.

A debt is only considered Statute Barred if you have not contacted the debtor for a period of 6 years and no action has been taken on the account

[foulecamp]

have you thught about debt factoring?

[gammaray]

Pass the debt on to a collection agency. You won't get the full amount of the invoice as the agent debt collector will take a chunk for their trouble. Debt collectors are like a dog with a bone. They don't give up until they have sucked all the marrow out. I've used them in the past for cretins (sorry... clients!) that just refused to pay. They all ended up a hell of a lot poorer than they would have been had they paid up on time. Check it out. I suppose it depends on the size of the invoice but its better than righting off the debt.

[Harley]

Just as a point of interest you can't factor debts to members of the public. Factors only deal in commercial business to business debt and won't take single abd overdue invoices anyway.

I would be very careful in dealing with debt collection companies unless you can establish their integrity. The big bloke with a dog may prove just as difficult to collect from once he has " collected" your cash !

There is a very helpful site for small businesses here and there is some advice under the Cash Flow section

www.bizhelp24.com

[stanleyman]

They still have to pay you even if they've moved and can't enjoy the garden, it's their loss not yours. You have six years to make a claim through the small claims court and you can do this online, very simple, there is a fee which they will have to repay on top of interest and your costs.

You both made a contract, you to do the work and they to pay you, they have no defence. Don't be put off by them threatening you, you are in the right, they owe you.

The local County Court will help you fill in the forms if you have any problems. You just need a copy of your invoices and all correspondence for when you attend.

They will have an opportunity to defend the claim when they receive the summons but this will be difficult for them to claim any problem not already mentioned so don't let that put you off. If you are determined enough you will get your money.

[jason1980]

Hi, you have every right to claim your money back and can even do it online.

http://www.moneyclaim.gov.uk

[yodamonks]

thankyou everyone this info is really helpful. things don't seem so bleak now, they owe me a lot of money and i've been worried sick this really helps.

[mormess]

Hi Yoda

I've been in a similar situation. Some people really just don't want to pay you. But you are in the right - you did the job and they owe you.

Find a debt collection agency or ask around for references to one. The one I use is good and they are no win no fee- when they do get your money they take 15% which is worth it I feel. They also do it in such a way as to mend the relationship with your client (if you want it mended!).

The way I see it - the client did not complain or give you a chance to put things right at the time if indeed there was anything wrong, so they owe you.

Try asking at the local CAB - they may be able to help.

Good luck.

[mormess]

Oh, and tell them to go ahead and seek legal advice and you do the same. Unless they have a crooked solicitor they won't have a case.

The cheek of some people. When you say "they no longer enjoy the garden", it means that once upon a time they did enjoy your work, so they should pay up!!