A couple of years ago I built a web app for a Spanish client who I knew from previous employment. Basically it was a replica of an existing system they had used previously, but all written from scratch so it was legit (there are many similar sites out there, but that's not the issue, it's just a bit of background).
Financial arrangement was that I built it with no up-front fees, they would then pay two invoices per month for the first 24 months - one for hosting/support and another as a license fee. After the two years they would then own the software and I would continue charging the hosting/support (one invoice).
Their business isn't hugely profitable and, for one reason or another they were often only able to pay me one invoice instead of two, to the point where they now owe me >£8k in unpaid invoices. I have a good relationship with them but obviously this isn't great for me and I have tried on many occasions to get them to pay me what they owe, even in installments so it's manageable, but this never seems to get anywhere.
My dilemma is that hosting the system is a negligible cost and their support requirements are practically non-existent (I've not had to do anything in over 12 months), so the money they *do* pay is cash in the bank, and realistically I consider that I'm in profit for the venture against time spent building it. However I would obviously like this money paid since it was agreed and in writing.
Having access to the system I can see it runs at a very marginal profit, perhaps even occasionally a loss once overheads (my invoices plus staffing costs etc) are factored in. I strongly suspect that if I threatened to shut it down, it might be a trigger for them to just fold the business and I'd be left not only chasing them for the capital owed, but losing out on the on-going monthly payments I do still receive. Given they are based in Spain I think I would struggle to force payment via a legal route and having successfully taken a UK business to small claims court before and still failed to get a penny out of them, I am skeptical of a positive outcome, so the leverage I always expected to have by being in control of the site doesn't seem so useful to me now.
Options then, seem to be:
a) Do nothing. Keep taking/chasing money every month and be happy it's something for effectively no work. Accept that I will probably never recover the full debt.
b) Get legal advice and try and pursue the debt while keeping the system going and hope it might get me paid.
c) Threaten/carry out the intention of stopping their site (it's in my full control, and legally they are in breach of contract due to the unpaid invoices) and hope this gets the debt paid but accept they may fold and run, leaving me with either the legal route or writing it all off.
I realise I've been a bit remiss in allowing the debt to accrue, but this happened fairly slowly and always with promises of them addressing the situation so I let things slide.
Financial arrangement was that I built it with no up-front fees, they would then pay two invoices per month for the first 24 months - one for hosting/support and another as a license fee. After the two years they would then own the software and I would continue charging the hosting/support (one invoice).
Their business isn't hugely profitable and, for one reason or another they were often only able to pay me one invoice instead of two, to the point where they now owe me >£8k in unpaid invoices. I have a good relationship with them but obviously this isn't great for me and I have tried on many occasions to get them to pay me what they owe, even in installments so it's manageable, but this never seems to get anywhere.
My dilemma is that hosting the system is a negligible cost and their support requirements are practically non-existent (I've not had to do anything in over 12 months), so the money they *do* pay is cash in the bank, and realistically I consider that I'm in profit for the venture against time spent building it. However I would obviously like this money paid since it was agreed and in writing.
Having access to the system I can see it runs at a very marginal profit, perhaps even occasionally a loss once overheads (my invoices plus staffing costs etc) are factored in. I strongly suspect that if I threatened to shut it down, it might be a trigger for them to just fold the business and I'd be left not only chasing them for the capital owed, but losing out on the on-going monthly payments I do still receive. Given they are based in Spain I think I would struggle to force payment via a legal route and having successfully taken a UK business to small claims court before and still failed to get a penny out of them, I am skeptical of a positive outcome, so the leverage I always expected to have by being in control of the site doesn't seem so useful to me now.
Options then, seem to be:
a) Do nothing. Keep taking/chasing money every month and be happy it's something for effectively no work. Accept that I will probably never recover the full debt.
b) Get legal advice and try and pursue the debt while keeping the system going and hope it might get me paid.
c) Threaten/carry out the intention of stopping their site (it's in my full control, and legally they are in breach of contract due to the unpaid invoices) and hope this gets the debt paid but accept they may fold and run, leaving me with either the legal route or writing it all off.
I realise I've been a bit remiss in allowing the debt to accrue, but this happened fairly slowly and always with promises of them addressing the situation so I let things slide.
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