unpaid invoices

Discussion in 'Growing and Managing a Business' started by oliverst14, Mar 18, 2014.

  1. oliverst14

    oliverst14
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    Hello everyone

    This is my first post within this forum so first i will imtroduce who i am and what our business strives to achieve.

    We are fx laser systems, an event management company specialising is laser lighting shows and effects such as fire and co2 cannons. We have been trading for 10 years but only setup this branch of the company 18 months ago.

    Im oliver stewart and since being tiny have loved lighting at large events this is why i decided to set this business up. Because i love what i do.




    Anyway the problem i currently have.........


    About 12 months ago we got an order for a full laser show and projection mapped display. The price was quoted at £800 and the client was sent over the contract. This was signed and returned back.

    The gig arrived and we supplied everything as per the clients wishes and they were extremly happy. When payment was ecpected as per terms of contact after the event had been completed the promoter explained they had struggled with the event and they would only be able to pay me £100.

    Obviously upset by this as the event had cost me £400 to stage i asked for proof of address and a copy of driving license so i could chase the claim for money. The client agreed to this and i agreed a fair payment plan of £100 a week for 2 months and even edplained if payments were made on time no interest would be added.

    As you may have guessed this never happened so eventually after chasing invoices and adding interest i contacted a debt collection agency who took on the case. After 3 months still nothing had happened so i contacted the agency and they explained that they had not managed to contact the defendant and the case was no longer viable for them to persue.

    By this point the debt was up to £1000 and the money i was out of pocket was £500.

    I then decided enough was enough and took the case to small claims court (mcol).
    The case was took on and i paid £160 in charges throughout the precedings but got the judgment i wanted and won the case.

    I obviously thought this had come to an end and he would be forced to pay up but no.

    County court baliffs went round to his home address but came back stating he had no money or possesions that they could take and they could not do anything furyher for me.

    Mcol came back and have said i can follow one of the other forms of action to which therr are 4 but each time i do they charge me £60 and have no way of knowing what will happen.

    Im now at a point where i dont know what to do because the people i thought would help have just dug a deeper hole in my pocket.

    I do hope someone can help with a solution cause i really am at whits end

    Thankyou so much in advance
     
  2. Business Attorney

    Business Attorney
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    I don't know how collections work in the UK but in the US if the debtor has a job, you can give notice to his employer and have a small amount deducted from his wages every pay period and paid to you.

    If he has no assets and no job, then the best thing may be to simply sit on your judgment and wait until he has assets or a job, then make a new attempt to collect the judgment that was rendered in your favor.
     
  3. Changed Creation

    Changed Creation
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    Hi Oliverst14
    I'm sorry to sound like the bearer of bad news but personally I think you must give this a rest and see the experience as a lesson taught by the school of hard knocks. It sounds as if you have tried to regain this outstanding debt to such an extent that further pursuit is costing you more than by recovering the money lost. I also may be wrong but my impression is that the deal has not only hurt your pocket, but also your ego. Sorry to sound so crude :( My advice is to write it off and learn from it ex how to sift better who to take on as a client, if large amounts of money are to be paid, to request an upfront fee to help cover costs, to divide the payments so that work is paid in batches etc... Debt recovering is also big business, but that is not the one you are in. I think you should let this experience go and focus your efforts on finding new prospects and turning them into recuriing clients. It is obvious that the client you had is not the type of client you want to draw into your business again, and I would focus on figuring out who exactly the real ideal client for your business is, and focus all of my attention on serving those as best I can.

    I am also saying this because life has a way of spinning all of us into all of the positions we think we will never find ourselves in. I also never believed I would find myself in the bad financial position with a failing business and more people I owed money to, than I ever imagined! And if some of them had not decided to let go of my debt, I probably would have taken many more years to get out of that terrible position! With 9 out of 10 businesses failing, I think you will improve your chances of better success to say to the one that was a loss, "some you win, some you won't, who's next!" You can now either focus on your loss and get more of it or focus on a win and get more of it, because where attention goes energy flows, and what you focus on, grows... I think you show incredible tenacity which can be of greater value in service to clients who love to pay for service. Hope this helps.
     
  4. Danoctopus

    Danoctopus
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    Its a shame but i believe Changed Creation post is correct - Some things are better to let go of, you will end up spending more money and not getting anywhere plus i am sure this will be stressing you which can be a worse effect than losing money.
     

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