Our client, a Bristol-based Drilling Supplies Company, had been politely requesting payment of a £6,324.60 invoice issued to a local Engineering Company on 30-day terms for over six months. On each occasion they chased for payment, they received the same response that they would be paid as soon as the debtor received payment from the end client.
Our client finally ran out of patience when the same end client contacted them directly to enquire on ongoing maintenance requirements and advised that payment in full was made to the debtor within the agreed 30 days terms over four months ago.
The debtor did not try and use the same excuse once our client instructed us, and the debt was collected and transferred to our client within two days. The late payment charges that make up our fee were included in the payment.
We will pay you when we get paid?
Is the excuse of we will pay you when we get paid a valid reason to withhold payment? Can you be sure that they have not already been paid? The answer to both questions is no! And it should not be your problem when your debtor receives payment or not. You should be paid within the agreed payment terms of the invoice you have issued irrespective of whether or not your debtor has been paid.
If you are faced with the “we will pay you when we get paid” excuse, don’t wait six months to take action. Even if the debtor has genuinely not been paid on time, their inability to manage their credit control and payment processes should not mean that you have to wait beyond terms to receive payment of your invoice.
It took the creditor less than 15 minutes to submit their instruction to us. We commenced action the same day, and the matter was successfully resolved within 48 hours.