Delayed payment issues & stalling tactics.

Del Piero 10

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Joined
Mar 15, 2012
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509
So last year during the horrendous hail storms, I put my friends dad in contact with an insurance adjustor company to get work. Usually companies need to be registered on an insurance panel to get work but due to the high volume of work, they gave a lot of smaller companies work without having to go through the registration process.

Now my friends dad has been doing a stellar job with the work assigned to him (client & insurance company happy), he had to foot the bill for supplies, petrol & labour. The insurance adjustor company paid him in small amounts to keep him content & quiet but they have been stalling since last year december on payments.

Now when I heard of the situation I told him not to go forward with anymore work until they settled outstanding amounts. He ignored my advice which I understand. He hasn't had work for quite some time & thinks this will be his only source of work for quite some time. They bombarded him with jobs as a lot of people were sitting with damaged roofs, broken ceilings, water damage etc. With each job they sent an sms & email to accept the job along with said clients info, within the emails it stipulated when payments would be made out which they haven't paid out or currently stalling on.

Now I know that the insurance company authorised payments on the jobs done, as the clients have told my friends dad. The insurance adjustor company has been holding back payment for some reason which resulted in delayed jobs, clients sitting with horrible conditions during the festive season. The man worked all through december to satisfy the clients as nobody wants to be in that situation.

Now they have requested a meeting to settle the issues at hand but they have been complaining that he's charging them vat. It seems they are using any delay tactics to avoid payments until financial year end to present well balanced books at the expense of a smaller company.

It's best to have them resolve the issues before anything escalates more than it should but I doubt that will be the outcome.

What course of action should he take? Personally I'd like to pitch at the insurance company & cause a major scene to have the issue rectified but on a professional level I know it's bad advice.

On a side note. The insurance adjustor company has a construction company registered under the owners husbands name & the work has been outsourced to my friends dad.
 

Ancalagon

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Feb 23, 2010
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18,140
Everyone that I have ever spoken to who runs a small business has said that getting paid money you are owed is one of the biggest problems. Big companies can afford to wait, while you cannot, so they withold payment while it suits them.

Ways to get around it? I dont know. Personally, I would with hold work. Its pointless getting legal involved for such small amounts though.
 

Del Piero 10

Senior Member
Joined
Mar 15, 2012
Messages
509
Everyone that I have ever spoken to who runs a small business has said that getting paid money you are owed is one of the biggest problems. Big companies can afford to wait, while you cannot, so they withold payment while it suits them.

Ways to get around it? I dont know. Personally, I would with hold work. Its pointless getting legal involved for such small amounts though.

He did eventually stop doing jobs due to shortage of funds but they went onto complete his jobs which I know they aren't allowed to do.

Wait, does he have a legitimate VAT number with SARS?

Yes, he does. To me it seems like they're cooking the books asking for invoices without vat.
 

DJ...

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Jan 24, 2007
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70,287
He just needs to report them to SARS if that's the case. He has to charge VAT. It's not his, or their decision.

Let him have the sit down with them and hear their case. Right now it's hearsay until the cards are on the table...
 

Nerfherder

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Apr 21, 2008
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29,703
He just needs to report them to SARS if that's the case. He has to charge VAT. It's not his, or their decision.

Let him have the sit down with them and hear their case. Right now it's hearsay until the cards are on the table...

I think they want the vat separate on the invoice.

Thats flipping annoying but with the big companies they have processes and can't pay anything without an invoice that its 100%

I work for an SME that does work for the SA banks... you will be shocked what kind of tactics they use to delay payment with us. We just have to suck it up and run round in circles to get our billing right.
Our bread and butter customer took 2 years to get payment right, now its fine but the company struggled while we waited. If we had fought them then they might have dumped us.


People think they will get better business practices dealing with the big guys, hell no.
 

Frikkenator

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Aug 23, 2006
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1,801
I think they want the vat separate on the invoice.

Thats flipping annoying but with the big companies they have processes and can't pay anything without an invoice that its 100%

This... Don't know what his invoices look like but VAT has toe be specified if charging it and different companies have different requirements around invoices (especially the bigger ones).

Either way, this is part of the job if you run a small business, spend half your time chasing payments. It sucks, but that's the way it is.
 

DJ...

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Jan 24, 2007
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Oh, if he's not indicating VAT separate then he needs to...
 
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