Hello,
I'm working remotely with a client in the UK. My client is a Private limited Company, I am working via my own Private limited Company. My client is a small two man operation with no IP or non-director assets I'm aware of.
I completed two pieces of fixed price work with the client, which resulted in my client winning a public sector bid. The payment of the fixed price invoices was paid on time. After the bid was won, we agreed via email terms for my work fulfilling the new bid including a day rate and payment terms. We did not sign a written contract.
I have worked on this project since the start of May 2019. Each day, or half day, I work I upload a record of the day worked to a timelog sheet in a shared wiki.
In a phone call I offered "a couple of weeks flexibility" over the due date of my May invoice to align with a late stage payment from the public sector client to my end client. This payment from the public sector client was due by the end of June, but was not paid on time.
Early July I said that I could no longer accommodate this flexibility, and my client assured me the payment would happen within 2 weeks. My client paid me 1/4 of my first invoice as a partial payment one week after I emailed them I needed payment. I was concerned at the time it took them a week to have enough money to only pay part of what they owed me.
I continued work for them the next week, being assured that the public sector payment was only two weeks away and I would be paid in full when this happened. This week however I was copied in on an email stating that the public sector client was delaying payment further (due to unhappiness with a deliverable, but not the quality of my work) and the civil servant cautioned to not expect acceptance of the deliverable to happen within the previously expected timeline.
This has made me extremely anxious.
I emailed my client saying I would continue working the last two days in August trying to remediate the feedback in the deliverable, but otherwise would have to down tools in August as my first invoice was now 50+ days overdue, and my second invoice now also overdue. My client called empathising with me and stating they would seek loans and overdrafts to pay me asap to get me working again.
The stage payment from the public sector was for £20k, I am now owed over £30k.
I've managed to stay on amicable terms with my client and would like to complete the project if I'm paid on time, however I worry I've extended too much trust and credit.
I'm worried that my client is unable to pay my invoices on time, especially as they money they are due, is less that the money they owe me.
Is my client trading while insolvent? Am I able to recover debts if they declare bankruptcy? My client is still emailing me about progress they are making in other areas, even though I declared I've downed tools.
Thoughts?
I'm working remotely with a client in the UK. My client is a Private limited Company, I am working via my own Private limited Company. My client is a small two man operation with no IP or non-director assets I'm aware of.
I completed two pieces of fixed price work with the client, which resulted in my client winning a public sector bid. The payment of the fixed price invoices was paid on time. After the bid was won, we agreed via email terms for my work fulfilling the new bid including a day rate and payment terms. We did not sign a written contract.
I have worked on this project since the start of May 2019. Each day, or half day, I work I upload a record of the day worked to a timelog sheet in a shared wiki.
In a phone call I offered "a couple of weeks flexibility" over the due date of my May invoice to align with a late stage payment from the public sector client to my end client. This payment from the public sector client was due by the end of June, but was not paid on time.
Early July I said that I could no longer accommodate this flexibility, and my client assured me the payment would happen within 2 weeks. My client paid me 1/4 of my first invoice as a partial payment one week after I emailed them I needed payment. I was concerned at the time it took them a week to have enough money to only pay part of what they owed me.
I continued work for them the next week, being assured that the public sector payment was only two weeks away and I would be paid in full when this happened. This week however I was copied in on an email stating that the public sector client was delaying payment further (due to unhappiness with a deliverable, but not the quality of my work) and the civil servant cautioned to not expect acceptance of the deliverable to happen within the previously expected timeline.
This has made me extremely anxious.
I emailed my client saying I would continue working the last two days in August trying to remediate the feedback in the deliverable, but otherwise would have to down tools in August as my first invoice was now 50+ days overdue, and my second invoice now also overdue. My client called empathising with me and stating they would seek loans and overdrafts to pay me asap to get me working again.
The stage payment from the public sector was for £20k, I am now owed over £30k.
I've managed to stay on amicable terms with my client and would like to complete the project if I'm paid on time, however I worry I've extended too much trust and credit.
I'm worried that my client is unable to pay my invoices on time, especially as they money they are due, is less that the money they owe me.
Is my client trading while insolvent? Am I able to recover debts if they declare bankruptcy? My client is still emailing me about progress they are making in other areas, even though I declared I've downed tools.
Thoughts?
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