Unpaid Invoice

Chardee MacDennis

I'm just wondering what to do about a client bouncing cheques, it's now 2 in the last few weeks (both for the same invoice) and 1 previously. Trying to collect payment on the same invoice for a couple of months, originally he was just making excuses saying payment was coming each day and that there were problems with online banking processing the payment etc etc. Then when i started putting pressure on him he gave me a cheque. That bounced last week, i informed him this had bounced and he immediately gave me another cheque which bounced again.

he seems to be just trying to make things awkward until i give up, which i wont! unfortunately we dont have a contract (i gave him one, which i never got back signed) but just email correspondence. what are my options.

I am a sole trader and his company is a limited company btw. What are my options if any?

Thanks all (if this is in the wrong forum, please move it!)

Mr. Presentable

Bouncing a cheque is fraud. You have an option now to proceed legally and stop him from trading. I suggest you advise him of the possibility.

mcaul

firstly, by giving you a cheque he is confirming he owes you the money - so no worries about contract etc.

Secondly, depending on his type of business, timing of lodging the cheque could help. - E.G. If he is in Retail, go to the bank the cheque is drawn on, on a monday afternoon and ask for the cheque to be cashed (bring ID).


If this fails, look at a districk court summons, but this could delay by 2/3 months.

Chardee MacDennis

nipplenuts wrote: »

Bouncing a cheque is fraud. You have an option now to proceed legally and stop him from trading. I suggest you advise him of the possibility.

Thanks that's much appreciated! Do you know how i can go about this? Cant find anything on google!

edit: found these

http://ww.boards.ie/vbulletin/showthread.php?p=61729730
http://www.askaboutmoney.com/showthread.php?t=117624

Snowdrop

You should consider getting Stubbs Gazette to send a demand letter. It only costs €27 and they claim a 60/70% response rate. I have no affiliation with them but used them recently and got a successful outcome for some debtors I had been chasing for over a year.

If you threaten legal action, you need to follow through straight away though. I believe Stubbs can do this for you as well.

Best of luck.

mcaul

Theer is the other side - if its a client that could provide future business you don't want to totally piss him off.

Banks are horribly strict at the moment - worse than during summer and so your client is probaly going through a bad patch.

Maybe a frank & open meeting with agreement for a part payment immediately with extra in 2 weeks and the balance 2 weeks later would help all sides? - He may then think you of a decent sort and throw more business your way later? - Don't forget, he's probably stressed out at present, so a soft approach could pay good dividends in future.

TheWaterboy

I too think that a frank and open meeting is your best option - if he tells you he is going through a bad time and cannot afford to pay you then Im sure ye can workout some payment structure. However if he messes you around again then have a look at doing what some of the other posters suggested.

If they guy is open and tells you the truth then id give him every opportunity to part pay you or give him more time to find the cash.

dbran

Hi

I have had plenty of frank, helpful discussions whith a person who owes me a small sum of money and I might as well have been wasting my time. I got promised cheques that didnt arrive, cheques that bounced etc.

I presume that the OP has gone through all the above before and it has failed. We all worry about not getting repeat business. But the amount of time and resources wasted chasing money from certain clients means that I will gladly turn away business from someone who dosent pay me. Its just not worth the effort and the risk to my cashflow.

dbran

mcaul

dbran wrote: »

Hi

I have had plenty of frank, helpful discussions whith a person who owes me a small sum of money and I might as well have been wasting my time. I got promised cheques that didnt arrive, cheques that bounced etc.

I presume that the OP has gone through all the above before and it has failed. We all worry about not getting repeat business. But the amount of time and resources wasted chasing money from certain clients means that I will gladly turn away business from someone who dosent pay me. Its just not worth the effort and the risk to my cashflow.

dbran

Me too - but soemtimes there's a way forward and sometimes there isn't. I have 3 summons out on 3 customers who do have the money and who won't pay, but probaby will at 10am on 23rd October when the court date is on whereas on 2 clients, I'm allowing them to pay a small amount each month with the balance at Christmas as they have always answered my calls and have been totally upfront about problems.

Chardee MacDennis

i wont be working this guy ever again, i have had the soft discussions and understanding his position. I have been owed the money since may or so and am at the end of patience...

thanks for all the responses

FusionNet

Its taking on average of nearly months to get money in at the moment which can make cash flow very difficult so i very much understand your position. One thing you should try if you havent already is a payment plan. Ive had to do this with some client, and im talking about my big, well percieved to be big clients. If he owes you €1000 ask for 50-100 a week. Yes its going to take more time but a lot of people have hit a wall in the last year and the bank may not re-finance or offer credit anymore. Your clients not going to be worried about a solicitors letter. If he is genuinely running out of cash flow im not sure will dorcing him to wind up help your situation? I may be wrong but my understaning is that the revenue and the bank get first dibs on everything, then you?

TheCostumeShop.ie: Ronan

I'd go with the soft approach on this one too. Call up to him/her in person and explain the cheque has bounced twice, let him/her know you sympathize with their situation but are under pressure from your accountants and bankers to get your books in order. Ask is their a suitable day to cash the cheque next time they will likely know when they next can actually afford to clear the cheque.

Even offer to give them a small discount if they pay before a certain date (if you want to be a bit harder say you'd rather they have the money then the debt collectors that your accountant is so keen on).

Remember many genuine people want to pay their bills but are struggling at the moment and treating them with respect can win you a life time of future business.