[BNM] Harsh economic times - protecting ones interests

[Derek Clarke]

If they go under there's nothing you can do to get paid.
Non-preferential creditors get very little in such circumstances.

So stop throwing good money after bad and stop any work you're doing
for them in favour of paying clients (if you have any!).

It also depends upon what sort of corporate entity they are. If
they're a limited company or plc a possible threat is to take the
company down yourself in the form of a winding up order. If they have
some money left they might pay you rather than go down!

Really the best thing to do is not to let a debt grow to this point in
the first place. You're extending them trade credit every time you
issue an invoice and it's up to you how much credit you extend to your
customers. Unfortunately this is easier advice to give than take!

I hope you've also taken precautions like keeping title to all work
until all bills are paid.

On Tue, Dec 2, 2008 at 1:19 PM, matt zb <bnm at zenbullets.com> wrote:
>
> Hi BNM,
>
> Some freelancing advice required.
>
> I've got a client, who owes me a considerable amount of money, who I suspect
> are struggling quite a bit cashflow-wise. They are very over-due on invoices
> and are reacting very badly to enquiries.
>
> Is there anything I can do to ensure I get paid if they were to go under, or
> would receivers take care of that? I'm also worried that if I were to start
> any action against them it might push them over the edge.
>
> Your thoughts appreciated.
>
>
> matt zb
>
>
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