Our client, a Peterborough based self-employed consultant, was contracted by a large West Country-based food manufacturer and supplier to several big supermarkets to assist with the launch of a new vegan product range.
Following completion of the consultation and works in accordance with the contract, our client issued their invoice of £8,615.22 inclusive of expenses and on the 7-day payment terms agreed in the contract.
What followed was a typical example of how difficult it can be for a freelancer to obtain payment from a large company. Each time our client chased for payment, they were transferred from one person or department to another person or department, who all shared a complete disregard for our client’s situation. The result was always the same. We haven’t received the invoice, send it again, and we will call you back. They never did.
By the time the invoice was overdue by 60 days, our client’s patience had been exhausted, and Advocate was instructed to recover payment of the debt. The instruction was received before our cut-off time of 14.00, and we commenced action the same day, issuing a Notice of Court Proceedings, including the additional late payment charges that make up our fee.
3-day payment of an invoice issued three months earlier
On day 2 of our action, copies of the Notice were emailed to several email addresses to which our client had been requested to send a copy of the invoice to in their attempts to receive payment. On the morning of day 3 of our action and before we had even commenced telephone contact with the debtor, full payment, including our charges, was received to our bank account.
As is our standard procedure, 100% of the principal invoice sum, £8,615.22, was transferred to our client the same day via a faster payment. It was actually 25 minutes after receiving the payment!
Our client received a completely free of charge debt collection service, which resulted in their ongoing frustration being resolved in 3 days. They were delighted with the service provided and the result we achieved.