YOUR FMB MEMBERS UPDATE FMB ROUND-UP
Having problems getting paid?
The advisors are not able to take legal action or write letters on your behalf, but they can talk you through your options. They will advise you to send the client two letters. The first is a formal letter written by you to the client, detailing what they owe and when they need to pay – usually within seven days. The letter should also state that if payment is not made by the deadline, you will escalate the issue to a debt recovery matter. The next is a letter before claim (LBC), but you will need a solicitor to write it.
In a member survey that went out in May, we asked if you were having problems getting paid by clients. As many as 63% of you had lost money in the last two years because of a job where the customer refused to pay. Sadly, this is an occurrence that seems to be
That’s a significant amount of work carried out in good faith by FMB members but without being paid by clients. The effects can be severe: hitting your profit margins or robbing you of your ability to make any profit at all. We’re here to support you The FMB has services to support members in these circumstances. Affected members should start by phoning the FMB business support advice line on 0116 243 7623 , selecting the ‘legal advice’ option.
happening more than usual. The survey results showed: 30% lost between £5,000 and £10,000; and
80% of those who lost money simply wrote it off, being deterred by lengthy and costly court proceedings.
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