LTD Company making a small claim

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  • LTD Company making a small claim
  • 5plusn8
    Member

    My little side business (a Ltd Co) has hit a speed bump, a client (also Ltd co, actively trading) is not responding to emails, calls or letters about £900 invoice which is now 3 months overdue. I’ve done letter before action, but are the rules regarding small claims between Ltd  companies a bit different from those between a person (claimant) and Ltd co? I have called MCOL, and do you know what their response was? I am sorry we cannot give legal advice.

    Its not legal its procedural but anyway..

    revs1972
    Member

    Are they far away from you ?

    Usually find a visit in person is enough to jog people into paying what they owe.

    Its not a huge amount. Have you checked company house website etc to see if there are any issues ?

    poly
    Member

    No any legal entity can claim against another legal entity.

    you may want to check the rules for service, it may have to be on the company’s reg office – although if different from where you sent the work it’s worth ccing them.

    i assume you are both in England since you are talking MCOL?

    If you are not a director of the company you may need to prove you are authorised to act.  Similarly for anyone who tries to represent them.

    i assume you have a feel for the size of the other party and the prospect of getting your money rather than them winding up?

    revs1972
    Member

    You wouldn’t wind up a company who owes you £900, it would cost you far more than that in time and money,

    Someone else might already be doing so though if they are in trouble.

    5plusn8
    Member

    revs – re visit – I am not a particularly confrontational person so that isn’t my bag. They are actively trading, I don’t think they are in trouble.

    Anyway I am hoping the letter before action does the trick, it has always worked in the past for me.

    Poly  thanks I will check – so far letter before action so nothing “official” just yet.  It is feasible that my letter before action might be wrong then, so I might send another after this one expires after checking rules of service.

    revs1972
    Member

    revs – re visit – I am not a particularly confrontational person so that isn’t my bag. They are actively trading, I don’t think they are in trouble

    No need to be confrontational. Just play it cool. You were in the area, thought you would pop in to say hello etc etc

    It might be enough to get them to cough up.

    My old boss was one of these who would pay the ones who shouted the loudest, then would kick off big time when it the shoe was on the other foot, and actively avoid answering the phone / replying to letters etc.

    Used to love watching him squirm when creditors turned up unannounced.

    poly
    Member

    You wouldn’t wind up a company who owes you £900, it would cost you far more than that in time and money,

    Someone else might already be doing so though if they are in trouble.

    Aye, thats what I meant – I wasn’t suggesting the OP try to get them wound up – but that other creditors (and its quite possible there are, and if HMRC are owed serious money are one of the most proactive at bringing down companies) or the directors themselves may decide to pull the plug before anyone sees cash.

    They are actively trading, I don’t think they are in trouble.

    mmm… I think you are an optimist.  Plenty of large companies are actively trading right up until the moment someone external either triggers something, never mind the small ones.  Its quite legitimate to trade through technical insolvency if there is a reasonable prospect of getting out of it.  That prospect is subjective and varies depending on who is looking at it.  If they aren’t disputing the invoice and haven’t discussed payment they either are chaotic or are in denial.  In my experience offering them a payment plan (with statutory interest) will help distinguish between the two; if cash flow is an issue they will respond to that.

    5plusn8
    Member

    Well I am about to find out….

    P-Jay
    Member

    Seems you’re in the middle of doing something – we (the co I work for) tend to either write it off (really against my wishes) or call in the Debt Collectors to do the confrontation thing on our behalf, they’re not arseholes, but they’ll turn up in the middle of the working day with a big van that lets anyone looking know “we’re here about the unpaid bill”. It’ll cost you a %.

    P-Jay
    Member

    Also, some FDs / Bookkeepers / owners etc are just plain tight, if they don’t think they’ll need you again, they’ll just try to screw you for the sake of it.

    Premier Icon mattbee
    Subscriber

    MCOL from Ltd to Ltd is easy. Did last year twice for non paying clients. Pretty painless process and got to claim interest on the amount too.

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