Non paying customers

[rlk500]

Ok. What's the best way to deal with non paying customers. We were asked to help out a someone else's client who's server went down. We attended site (within 1/2 hour of the call) and did about a days work on his server. We were close to providing a fix and thought we would discuss costs so far. We told him the cost he said we he couldn't afford us. Basically, we have told him that's the cost and this is not a dutch auction. The server remains un-repaired and we have no intention of finishing the job unless he is going to pay for the work so far.

We realise we have learnt a salutory lesson, and in fact are not too annoyed about it. After all we have had a days training in business management for nothing, except our time......

The real point though is how do you protect yourself against these sort of herberts. Obviosuly, agree costs up front but if they don't pay up whats the score.

[SGirl]

You could try the Small Claims Court if the amount is small enough. I've used this on non-paying customers twice now - with 100% success.

HTH.

Edited to add: In one case, just the threat of action was enough to make the client pay up.

>> Edited by SGirl on Tuesday 27th May 09:52

[GavinPearson]

As it is an emergency on your client's part I suggest you generate a form that the office manager or whoever is in charge signs before you start work. Needs to say that they need you to start work asap, authorises up to x hours work and y cost of parts and give you a corporate credit card number. Give them a copy of whatever they sign.

As soon as you have authorisation start work.

It may cost you time there but it stops the mess of chasing them later.

[broccoli]

How do you protect yourself?

Well you cant basically. I had a client go into receivership a few months ago but they carried on trading using the goods I provided. We print and distribute forms / magazines etc and I went in to collect the invoices / delivery notes we had provided just to make life difficult.

It is your reponsibility to prove retention of ownership so I left with sod all. A lesson learned maybe but all my new clients pay up fron for any service now. Saves a lot of time and bother - if they arent keen on it then they arent worth trading with imo.

Simon.

[v12v8]

Get an authorisation form signed which includes your terms and conditions (so you have a written contract), if possible get cash up front, or at least part payment. If they don't pay and the amount owing is more than £750 you can serve a statutory demand threatening to make them insolvent. Unless they are a gonner already, this normally works a treat. Any solicitor can help you with this.

[rlk500]

Thanks guys, very helpfull. Strangely enough after a few days of silence the client now wants to pay......