Need Advise - Its critical for us

entry

Hi All

We startup a company 4 months ago, a small startup with some amount from parents money. We started a broker business of printed material from Trade printers in Ireland and selling it in UK market and Irish Market.

In March we supplied booklets to a business, ( €6k) and we paid to our supplier from our own. Now the customers is not paying to us and keep saying money will be in account today tomorrow, and some time making other excuses.
We are very small start-up and this amount is big for us and we are almost surviving to pay to our 2 employees.

Can anybody please suggest how to recover that amount from them.

Any advise will be appreciated.

Thanks
Regards

bogwalrus

Legal action seems the obvious next route. A simple letter from your solicitor to that company might scare them into paying immediately.

Good luck with it.

Gloomtastic!

Three reasons why companies don't pay:

1. Inefficiency
2. Inability
3. Company Policy

I'm assuming your client falls into categories 2 or 3.

You need to get to the top of the list when it comes to payment. Going down the legal route is time consuming and you have no guarantee of payment.

Call round to the client personally and ask for a cheque. Don't take no for an answer. Don't threaten anything, just sit there until you get the money owed to you.

Remember at all times, these people are stealing from you, be courteous but firm. You are owed the money and the more inconvenient you make their lives the nearer to getting paid you will be.

I am currently going through this very process with a client. If his cheque bounces a second time, he knows that I will have no hesitation in making his life hell. In the nicest possible way of course!

Going forward I would very, very strongly advise you to get a credit rating for all your clients before accepting any business from them. You wouldn't lend a stranger on the street E6,000 without knowing whether they could and would pay you back, why would you do the same for a business?

blue4ever

Few things -
is the business you supplied in the Republic?
Do you have a clause that you retain possession of goods until paid?
The business you supplied, what (general) business area are they in?

C

ebbsy

Get a very agressive Solicitor who will look for judgement within a very short timeframe.

blue4ever

ebbsy wrote: »

within a very short timeframe.

thats the problem - it like watching paint dry, slow process and easily disrupted by the supplier

The Apprentice

I do hope it works out for you my man, this is now one of life's and business's greatest mistakes. Giving credit to someone that may bail - as above you should have really not given anyway that type of credit or upfront goods without getting payment first. I have no real added value to add to that post only the fact you will probably not likely make the same mistake again.. which could be very costly.
This early in business i dont see you recovering from this mistake which is pretty disastrous.

I wish you the best buddy.

Hire a debt collection agency most will accept a percentage of what they get back as a fee.
Get one that is relentless and has a track record of hassling people . Solicitors are grand if you have time on your hands my advice is this route .