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Very late payments on no formal contract

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    #11
    Originally posted by Lance View Post
    I doubt they can afford administrators if they are that screwed. It would be a job for the official receiver.
    This is an option to kick start the process.
    Can I issue a winding up petition? - Company Rescue
    That is really useful thanks Lance. I was not aware that an SME could do that. Cheers.

    Comment


      #12
      Thank you for the advice and opinions. It's made me clearer on my position going forward.

      Tomorrow I have a call with the Director of my client where they said they'd update me on their plans to resolve payments and get me working again. I'll bring up his business plan and ask about their long term financing plan.

      If I'm unsatisfied with the responses I'll start dunning.

      Comment


        #13
        Originally posted by itconsultantuk View Post
        Thank you for the advice and opinions. It's made me clearer on my position going forward.

        Tomorrow I have a call with the Director of my client where they said they'd update me on their plans to resolve payments and get me working again. I'll bring up his business plan and ask about their long term financing plan.

        If I'm unsatisfied with the responses I'll start dunning.
        You are showing great equanimity. This sounds like a sensible plan.

        Comment


          #14
          I received an email from my client who believes he's resolved the issue with the public sector which should unlock funding.

          He's also told me he's arranged some kind of financing with the bank and that should allow him to pay something. It worries me that this wasn't already set up. How did he expect to pay any contractors on time without some kind of available cash?

          He's not been clear with me about amounts or such.

          I want to email him, after some sleep, asking what he is paying and when.

          I still need to decide if I want to continue working together after payment. As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice.

          Thoughts?

          Comment


            #15
            Originally posted by itconsultantuk View Post
            I received an email from my client who believes he's resolved the issue with the public sector which should unlock funding.

            He's also told me he's arranged some kind of financing with the bank and that should allow him to pay something. It worries me that this wasn't already set up. How did he expect to pay any contractors on time without some kind of available cash?

            He's not been clear with me about amounts or such.

            I want to email him, after some sleep, asking what he is paying and when.

            I still need to decide if I want to continue working together after payment. As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice.

            Thoughts?
            if you've not been paid then they are in breach of any reasonable contract. On that basis there are no notice periods to worry about.
            See You Next Tuesday

            Comment


              #16
              If the end client is now making the payments and your client pays off his debt, then it's good to go. I would ask that he pay you more frequently though, eg weekly. The financing from the bank should allow this and give you more confidence.
              I'm alright Jack

              Comment


                #17
                Debt collectors

                At this stage, I reckon you should consider some formal process in collecting payment, maybe hint at possible legal action or even using the services of a debt recovery agency?

                Comment


                  #18
                  Originally posted by Adrian467 View Post
                  At this stage, I reckon you should consider some formal process in collecting payment, maybe hint at possible legal action or even using the services of a debt recovery agency?
                  Jesus’s that’s just rubbish advice


                  Sent from my iPhone using Contractor UK Forum

                  Comment


                    #19
                    Originally posted by itconsultantuk View Post
                    I received an email from my client who believes he's resolved the issue with the public sector which should unlock funding.

                    He's also told me he's arranged some kind of financing with the bank and that should allow him to pay something. It worries me that this wasn't already set up. How did he expect to pay any contractors on time without some kind of available cash?

                    He's not been clear with me about amounts or such.

                    I want to email him, after some sleep, asking what he is paying and when.

                    I still need to decide if I want to continue working together after payment. As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice.

                    Thoughts?
                    That is all very well. I the money in the bank?

                    I want to email him, after some sleep, asking what he is paying and when. - You want to send him a letter by registered post setting a final deadline for payment, now that you understand he has "secured" funding.

                    As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice. - If no terms are stated none. But even so, he is in breach of contract.

                    Comment


                      #20
                      Originally posted by clearedforlanding View Post

                      As we have very few terms in our agreement, I'm not sure how much I owe him in terms of notice. - If no terms are stated none. But even so, he is in breach of contract.
                      Indeed.
                      An agreement to purchase, delivery of the agreed goods/services, and an invoice are all that is needed to be legally binding and owed. In the absence of a contract common law is still valid(IANAL).
                      See You Next Tuesday

                      Comment

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