Problem with non paying customer...

mikeyh · Post by **mikeyh** » Sat Aug 06, 2011 7:45 pm

Was hoping that someone might have some experience with this whilst working freelance/ Toiminimi ? At the moment i have a customer that is basically non paying.
Two reminders sent,no reply to which. Also there were no complaints relating to standard of work in the first instance upon completion of the specified work/tasks.
Really dont want to lose/get stiffed for this amount( not exactly thousands but not the point none the less ) and trying to find out what would be my next step with being paid what is owed......

Like i said , i have sent the original invoice and two reminders: one email based , then one further printed invoice... not sure what to do next??s it possible to now involve a collection company? im guessing that this is a pricey process.....not to keen on that tbh...

Anyone in the know??Would really like this to not go sour, tried to be patient with this....slowly losing that though.....

**Sponsor:**

b.morales99 · Post by **b.morales99** » Sun Aug 07, 2011 2:47 am

Do you have any contract with him? If yes, it will easy to file for complaint but since you said you are a freelancer then I assume none. I suggest next time you get a deposit before starting your work.

Rip · Post by **Rip** » Sun Aug 07, 2011 8:58 am

mikeyh wrote:?s it possible to now involve a collection company? im guessing that this is a pricey process.....

As some business and organisations use them rather actively I'd think it is pricey for the person who should pay the bill.

rinso · Post by **rinso** » Sun Aug 07, 2011 10:13 am

?s it possible to now involve a collection company? im guessing that this is a pricey process.....not to keen on that tbh...

I don't know what the rate is for single cases, but normally the collection company kind of buys your claim and then tries to collect it.
Off course you'll get less than 100%, but it is probably the best option when dealing with a refusing client.

Rosamunda · Post by **Rosamunda** » Sun Aug 07, 2011 11:48 am

Your payment terms should be printed on your invoice (eg mine are 8 days from the date of the invoice) and you are allowed to start charging interest as soon as the payment is late. The max rate "viivästyskorko" you can charge is fixed by the Bank of Finland 1.7.2011 to 31.12.2011 is 8,5%. If you haven't stipulated the terms and conditions on your invoice then you might find that a factoring agent (collector) is unwilling to buy the receivable off you.

I suggest you phone the client and talk to them saying that you are reluctant to charge interest and bring in a third party collection agent but you have to do so unless you can agree how to move forward. It might be cheaper to agree on a discount with the customer (if they're unhappy) rather than sell off the debt.

Do you have a bookkeeper? They can advise you how to do the accounting re the VAT implications if the client doesn't pay.

Upphew · Post by **Upphew** » Sun Aug 07, 2011 1:23 pm

penelope wrote:The max rate "viivästyskorko" you can charge is fixed by the Bank of Finland 1.7.2011 to 31.12.2011 is 8,5%. If you haven't stipulated the terms and conditions on your invoice then you might find that a factoring agent (collector) is unwilling to buy the receivable off you.

The max rate applies only in b2c, in b2b you can charge whatever you dare.

mikeyh · Post by **mikeyh** » Sun Aug 07, 2011 1:42 pm

b.morales99 wrote:Do you have any contract with him? If yes, i
t will easy to file for complaint but since you said you are a freelancer then I assume none. I suggest next time you get a deposit before starting your work.

a few assumptions on your part that are quite unfounded,wise advice after the event...and i hate to say it but rather obvious.this is the first time in over two years trading in finland that this has happened....just a bit p!ss3d really...

but thanks to everybody for your advice!

DMC · Post by **DMC** » Mon Aug 08, 2011 10:01 am

penelope wrote:Your payment terms should be printed on your invoice (eg mine are 8 days from the date of the invoice)

I am impressed with that. Do your clients actually pay in that timeframe? I thought I was doing well when I moved some from 30 days to 21 days.

karel · Post by **karel** » Tue Aug 09, 2011 9:01 am

14 days is the average payment term here.
I'd say 8 days is rather short, indeed, but if clients pay within that time frame who cares?

As for the OP...
Threatening with Intrim Justitia (even if you are not a member) has helped in any case I've come across.
Don't just dump it in their lap, but always be polite, as penelope also says.

Rosamunda · Post by **Rosamunda** » Tue Aug 09, 2011 12:40 pm

Yes, my ice-cream supplier has 8 days payment terms.

I used to have 15 days but when the recession hit and I realised I couldn't increase my hourly rate I decided to shorten the payment terms. In my case I invoice at the end of the month which is up to 30 days after I have actually provided the service (for teaching/translation work), so the real payment terms are over 15 days on average.

And yes, I am always paid on time.

paddymorgan27 · Post by **paddymorgan27** » Fri Aug 12, 2011 9:47 am

Mikeyh we spoke on the phone about a month ago

i am the english plumber in Helsinki .... Send me your number via pm and i will tell you how i go about it in my plumbing buisness.
Just to let you know we always get our money it might just take a while thats all

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