Matt Sergeant wrote: > Step three: Once you've given them 90 days after date of invoice, get a > solicitor (not a barrister) to draft a threatening letter. It'll cost you > about $100. I'm afraid you'll have to give them another 30 days at this > point. > > Step four: Get a lawyer. Sue. $25,000 is not to be sniffed at.
What many small companies and one man operations dont realise is that debt collecting is an art. Also, some large companies (large banks in particular) have a policy of 'If you want to do business with us, we take 60 days to pay. It's all about keeping the cashflow on their side. I did some work for a certain Linux distributor in the UK recently and they took 100 days to pay after much harrasment. If you're small you have to be tough - put the geek aside and become that vicious old lady that is usually hired to badger late payers. Since you're also UK based, a good line you might want to try is "I've already paid the VAT on this invoice. I'd like to know is whether I should write you off as a bad debt so I can claim the VAT back." - assuming you're VAT registered that is. ~mark
