Re: FN-FORUM: Charging interest for non paying client

date posted 21st April 2008 13:18


On 21 Apr 2008, at 12:43pm, Duncan Glendinning wrote:

>
> Good Morning,
>
> I know this has been talked about on a couple of occasions, but the
> forum archive on freelancers.net doesn't appear to be searchable.
> Anyhoo, what I am after is some advice. I have a very difficult
> client, who, despite being sent an invoice clearly stating 14 day
> payment terms has said that she will pay me when her client pays her.
> As far as I am concerned my getting paid has nothing to do when she
> gets paid, does it?


I used wording like this with a client last year (having sent them two =20=

warning letters once the 30-day "grace" period was up):

"
We are writing with reference to our earlier communications about non-=20=

payment of our
invoice number ***. As you will know, this invoice was issued on 2 =20
July 2007 and became
overdue under the terms of the Late Payment of Commercial Debts =20
(Interest) Act 1998 on
Wednesday 1 August 2007.

We are now claiming interest under the Late Payment of Commercial =20
Debts (Interest) Act
1998 at the rate of 13.5% from 01/08/2007 to 14/08/2007 in the sum of =20=

=A3***.** and
continuing at the same rate up to the date of judgment or earlier =20
payment at the daily rate of
=A3**.**.

We are also claiming compensation arising from late payment under =20
section 5A of the Late
Payment of Commercial Debts (Interest) Act 1998. Under the table of =20
compensation set out
in this provision, =A3**.** is owed.

Original debt =A3****.**
Compensation =A3***.**
Interest to date (14 August 2007) =A3**.**
Total =A3****.**

The total amount now owed is =A3****.**. Please make payment of this sum =
=20
immediately. If
you do not pay the appropriate sum outstanding by 20 August 2007 =20
county court action will
be taken against you.
"

The client in this case, having been completely intransigent, =20
immediately paid the whole sum demanded. YMMV, natch.


Ian.
--=20
Ian Piper
Tellura Information Services - the web, document and information people
Registered in England and Wales: 5076715, VAT Number: 874 2060 29
http://www.tellura.co.uk/
01926 811574 | 07973 156616
--=20