Bad Debts. Any Ideas on Collecting

[Sparky]

Kevin,

Small claims court m8. I think it will cost £10 or £15 to do it but that gets added to his bill 🙂 The only downside is that he *could* offer £3 a week & if the court thinks that’s all he can afford then that’s all you get BUT it will register a CCJ against him & he might want to avoid that at all costs !!

Other option is go & beat him with a wet fish 😉

Hope it helps

John

[Phill Fenton]

Kevin

Keep phoning him and writing to him. Remain polite but firm through out. You’ll be suprised how much pressure can be applied this way.

It’s important to remain business like through out – try not to let yourself get annoyed about it all and you will most likely get paid eventually.

I find this attitude works well with most bad payers.

[Mike Brown]

Kev…theres’ an old saying:

“fool me once – shame on you, fool me twice shame on me!”

…so don’t let anyone fool you twice eh! 😉

I’m on your side – £100 isn’t gunna break the bank – so long as it’s a ‘one-off’ So, may I dare to suggest taking a different course of action and rather than waste more money chasing after something you seem unlikely to get 🙁 put your time and energy into making sure it doesn’t happen again 😎 .

How about asking for payment with order on all items under £100 and maybe a 50% deposit on those over this amount – and then only start the work when the cheque has cleared. I know the last thing you need at a time like this is ‘nagging’ but I’m just saying what I believe to be the best course of action…sorry 🙁

Anyway – you could always just stick £5 onto the next twenty orders to cover it!…after all – that’s how the high-street stores compensate for shoplifters! 😛

more soon

mikethesign

more soon

[WP_Graphics]

Hate to disagree here Mike but £100 is £100 I’d prefer in my bank account than in someone else’s – especially the guy that isn’t paying his bill!!

1. Send a letter stating that it must be payed within 7 days from date of letter (send this recorded delivery). Otherwise legal action will be taken
2. if nothing then send the next letter stating that legal action is to be taken.
3. DO IT!!! Get onto the phone and take him to small claims court!! The chances are if he’s done it to you he’s done it to every bugger out there!!
4. WAIT.

remember, you are entitled to claim interest on everyday that he is over due which I think is the current bank of england interest rate + 8%.

Vist the following site http://www.payontime.co.uk/

These people should be known to folk! (hot) (:)

Don’t give anyone an account without making them fill out an account form stating all there bank details and accounts.. This way, if an outstanding debt has accrued you can freeze his accounts until the bill has been settled by contacting the bank however this may need a solictor’s letter which I think is about £60 – £80.

I think it’s all worth looking at http://www.payontime.co.uk/ as I bet everyone has their late payers and it proves worthwhile to pay this!!

Gav

[Martin Pearson]

We decided we had to do something to stop us wasting our time on tyre kickers etc, so we said we would charge a 50% deposit on jobs from the new year plus if people wanted to take visuals away we would take a £25 artwork fee redeamable against the job. Trouble is its really hard to ask if you fear you might frighten the customer off and you need every job you can get.

[Robert Lambie]

im part with you all on this one..
its a tough one, but one you must be firm with.
like phill said keep business minded… dont let him know your annoyed..
just be firm and keep calling.. while this is going on start the small claims procedure.
call him from a mobile or dial 141 first to hide your number. i dont know how many i have caught out this way 😆
also let him know your part of a group! tell him he will automaticaly be black listed with the uksigngroup & if he doesnt pay all members will be notified to avoid working for him. he doesnt know how big or small the group is but the threat may make him think a bit more about ripping you off.. oh yeh and dont forget to list his details in the members area… 😀
it covers all of our backs also 😉

[Kevin.Beck]

all points taken

we do take deposits with new clients, we have done work for this chap loads of time, all with deposits. we got to know each other on first name terms. this particular order was a rush job.

“I needed them in a couple of days, haven`t got time to pop in with the deposit. i`ve always paid you on time” It was that sort of order.

perhaps I should keep customers at arms length, instead of having a laugth & a joke with them.

I`ll keep ringing and pluging away with it.

becky (:) (:) (:)

[Phill Fenton]

I always remind the customer that the signs remain my property until paid for in full. This is clearly stated in my standard terms and conditions (which I haven’t yet written – cos no ones asked me for them yet 😉 ).

I’ve always found that a good way to get paid is to turn up unexpectedly at the premises asking for payment. If payment is not forthcoming make it clear that the sign(s) are about to be removed and that after removing the signs you will continue to press for payment for the original signs – and in addition will now press for payment for the extra work involved in removing the signs.

This isn’t so easy to do when the signs are on a vehicle – but is a very effective method of obtaining payment when the sign(s) are on the outside of the premises you have just entered.

I’ve had many a good laugh on these occasions 😕

On one occasion I gaily waltzed into the kitchen of a restaurant expecting to confront the owner – only to find about 7 cooks all dutifully going about their business chopping chickens and pork and frying black bean sauce 😕

Fortunately they were more taken aback than I was – and I left the restaurant complete with all my limbs intact and a back pocket full of notes 😆 😆

[Martin C]

I only know of one effective way to get money owed but unfortunately he’s in prison at the moment!

I’ve had to chase non rent payers for a house I used to own. It’s surprising how many shirkers have respectable jobs so I’d just turn up (in the middle of Sainsbury’s once) and ask them for the dosh as loudly as I could. Worked every time, perhaps because I’d invaded their personal space.

I’d jump in the car and ‘drop in’ one day.

[Fat Bob]

Hi Kev/Guys

The correct way is what Gav said but me being the nice sort of guy I am and dont lose me temper till someone actually hits me prefer Phils approach.

I once had a guy who we had dealt with as you on a few occasions. We then fitted a sign for him on a fasion shop nothing special about £400 worth. well after a month of calling and all the excuses under the sun. I called at his shop 6 am one morning removed the sign and replaced it with a new one saying “Sign removed due to Non Payment” stuck very neatly on the facia. 😆

You Can imagine my bosses delight (He did not Know I had Done this) when at 10am that morning he had a phone call asking could we please come staight away and fix the sign and the cash would be waiting for us. When I called back I told him it was going to be an extra £20 for my trouble which I got. I still do Work for him now and sometimes we have a good laugh about it.

It was sometime later he told me what had happened and how he got into a cash flow problem and had had to duck and dive just to feed his family. The One thing this taught me is to find out why they tried to Knock you this can sometimes help you get your money. For instance if they are genuine offer to give them more time to pay or split the payment into say 4 smaller payments but for you to be able to do this favour for him you want one payment in cash now (Dont give him his check back If it ends up with the police youll need evidence of intent) this way you may gain back some or all of the money and may be keep a customer in happier times.

Ask your customer if he has a complaint about the job if he says he is unhappy with your work offer to put it right for him ( you Know if you done a good or bad job and usually they would moan or say something about it) . Now if its vehicle graphics and he uses the excuse that he is not happy with the job to stall for more time you have the opertunity to remove them with his permission if you get my drift , this of course will waste another hour or so removing them but its better than letting the b*****d ride around with them on his vehicle to wind you up every time you happen to see it.

How to get your Money Back from a larger company that messes you about. after threating them with county court proceedings and the likes and they still refuse to give you whats due for about £100 mark you can go to your solicitor and institute bankruptcy
proceedings agaist them this usually makes most companys pay up pretty dam Quick or they chance loosing the whole lot and they cant stand thier and say we acknowledge our debt we offer you £50 a month or what ever because if they aint got the money to pay thier insolvent and to knowingly trade like this is illegal. So if if the big boys want to give you a hard time it will cost you a little for a lot of satisfaction.

Then we come to the worst type of all and thats the person who is out to steal your goods or labour come what may. This type of person of which Im glad to say are not many but are on the increase, will manage to dodge even the most dogged debt collection methods and ecepts a wallop with a base ball bat as an occupational risk. These then are the ones that you must instictivly reconise or place a deposit of cash upfront to guard yourself from and if you do get caught do what you canin damage limitation.

Yo….So endeth the lesson….FB

[Kevin.Beck]

thanks for the replys folks.

when the first cheque bounced, i phoned straight away, and asked if there was a problem with the workman ship, which they replied -no. It was just a error.

phoned again yesterday, and got the “daughter” who took the message – loudly repeating my company name – you could almost see the chap in the background shacking his head – to tell hi daughter to pretend he wasn`t in

i`ll ring again today

[Martin C]

(It was sometime later he told me what had happened and how he got into a cash flow problem and had had to duck and dive just to feed his family. )

I agree Bob. If you can find out a little bit of background information it does help avoid situations that cannot be solved straight away, baseball bat or ney.
A work colleague from some years before, owed me £175, not major money but I was really, really struggling at the time and although he claimed poverty he was seen out buying wine and cigarettes. (A present for his Mum I was later told) So one winter’s evening I paid him an impromptu visit to find him burning his clothes on an open fire. The furniture, the carpet had already gone so I ended up taking him to the pub and getting k-eyed! Cost me another £40!

We can laugh about it now………..but the point I make is that there can be very good reasons for bad payers and the best way is still to ‘front’ them as you get a good idea whether you are chasing shadows and wasting your time worrying sooner rather than later when you’ve had many sleepless nights!

[Mike Brown]

…very true Martin…

despite what I said before – this is still me stance regarding debts that are not large and seem inpossible to get – I’ve often heard Clare, my wife, say “usually, it’s not that people don’t wanna pay – it’s simply that they can’t!”

It certainly doesn’t hurt to try and remain ‘human’ about it all…

more soon

mikethesign

[Kevin.Beck]

re- the coment made by mike. saying he just can`t afford to pay!

I don`t order supplys if I haven`t got the means to pay. So why do these people

this chap ordered on the monday, and got the suff a day later. how can his bank balance change in a day.

these signs were just “no parking signs” nothing he needed to keep his business going.

yes I could go and remove them, but the travelling time would out way the cost etc.

SOMETIMES I GET SO ANGRY…… (hot) (hot) (hot) (hot) (hot)

[SignMadeMike]

I must be the lucky one, i have never had any problems getting my money. I do get a deposit from the client. As long as you are confident in asking they, as long as they are genuine, will pay it. It also sorts out the time wasters.

On the subject of larger companies i always telephone their accounts department a few days before the invoice is due (we give 14 days ***see below***) ensuring everything is OK and the cheque, BACS is going through. This also gives you time for A sort any issues out before the 14 days, and B gets the accounts persons name. Then when you have to phone again i just ask for `Julie` and i get straight through. Cheekily they think its a personal call and they dont go hiding behind the sofa.

The reason i give 14 days is this. Most BIG compnaies are the worst payers. They want 30-90 days credit WHY?? I am not a bank and they are a bit bigger than me. So 14 days gives me time to chase it and at worse i wait 30 days depending on their cheque run. but never waited longer.

With this in mind it amazes me that the client says OUR credit terms are XXX days. So what!!! Mine are 14 days i dont care what you give.

Finally, you may get the normal “we pay 30 days after month end.” Careful here. If your invoice goes in on the first week you will wait till that month end and then 30 days. So my 14 days will hit a cheque run within this period. PHONE and ASK for it. ITs YOUR MONEY.

Also always get a purchase order, copy the details EXACTLY on your invoice or attach a copy. The people in accounts have no idea the maintenace man has ordered new signs and he has not told them or if there is a slight discrepancy your invoice goes into the `Query` pile and more delay.

Smaller jobs i ask for 50% deposit and rest on completion. MY BIG fitters make sure they get the money.

How do i know this is how it works, i am a bloody accountant!!!!

Good hunting

Andy (Texcat)
BA (HONS) Accounting

[SignMadeMike]

The above post was made by ME Andy (Texcat) not Signmademike.

I am using his computer

Andy

[Kevin.Beck]

😀 😀 😀 😀 😀 😀 😀 😀
Hi All
I`ve got my money.
He called in today and handed over the cash. Never once did he say sorry for the problems. He just said ” I had a couple of cheques returned”

I nearly shouted ” I BL**DY DID AS WELL”

Its all sorted now, but why why I phoned him after the first cheque bounced, didn`t he just say ” I`m having a few problems with cash flow, do you mind waiting a few weeks more?”

If he had got no money, the only answer I could have given him was “Yes”

I`ve carmed down now, purhaps I can get some sleep tonight

Thanks for all the comments and advise. I think the best methoid is to keep phoning them every day.

cheers all
becky

[Martin Pearson]

Glad to here you got your money Kev, I have had to write off some bad debts and I cant afford to do this so I know how you feel.
Its a small world though, I read Bobs post about replacing the sign yesterday. First thing this morning a landlord I know came in looking for a for sale sign for a shop they own, apparently the lease runs out in about a month the tennant is suppose to be buying the property but nothing has happened so this is to gee them along a little. While talking he said that when the tennant first moved in he wasnt paying the rent so the landlord put up a paper banner saying ” closing down due to non-payment of rent”. After that the rent was paid on time every month.