What to do? Non paying Customer

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WebDesignCompany

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Good evening,
I know that this is an old topic, but what to do?
I need some advise what's the best way forward.
The Case is as following:
Client as for website, seo, domain, hosting, flyer design, flyer print, picture shooting and on and on.
We have a written agreement also about the costs and signed from both parties.
We have done over 900 pictures, created an fully established ecommerce shop, have ordered the domain and hosting, have invested our time and affords, we have been twice at the customer for photo shoots, we have done flyer creation and have printed the flyers.
The customer have paid a deposit on the same day when we signed the agreement.
The flyer design and the printing and the photos are agreed differently and we have the agreement verbally and via whatsapp chats.
But we have been paying the flyers and pictures upfront through our own account and invoiced the client accordingly.
And we have delivered the Flyers and work, Website is not complete finish yet but this is depending on the client.
All in all the costs are around R19000 and deposit is paid of R3500.
Since weeks I'm running now after the client and always get the same excuses "next day payment will be made".
Today the arrogance of this client got a new high when we told him that we will go to court and his answer was simply " when it suits you then please go ahead"! WOW
The client have a healthy business and is really not poor, just simply arrogant.

So my question is as following:
Small claims court? Chances?
Debt collector agency?
Lawyer?
Police and open a case towards him regarding fraud?

Obviously this client is to arrogant and not even answer calls or whatsapp or sms.

I'm asking simply for advise what the next steps should be.

Thanks
 
Don't bother with the courts for that amount - will cost you more than that and it'll take years. Small claims court is your only option but you can only claim for R10K max as far I know.
 
I don’t think you can use small claims court for “business” use, might be wrong though
 
Brenden_E said:
Don't bother with the courts for that amount - will cost you more than that and it'll take years. Small claims court is your only option but you can only claim for R10K max as far I know.
Click to expand...

15k being moved up to 18 in April if I recall correctly
 
WebDesignCompany said:
Good evening,
I know that this is an old topic, but what to do?
I need some advise what's the best way forward.
The Case is as following:
Client as for website, seo, domain, hosting, flyer design, flyer print, picture shooting and on and on.
We have a written agreement also about the costs and signed from both parties.
We have done over 900 pictures, created an fully established ecommerce shop, have ordered the domain and hosting, have invested our time and affords, we have been twice at the customer for photo shoots, we have done flyer creation and have printed the flyers.
The customer have paid a deposit on the same day when we signed the agreement.
The flyer design and the printing and the photos are agreed differently and we have the agreement verbally and via whatsapp chats.
But we have been paying the flyers and pictures upfront through our own account and invoiced the client accordingly.
And we have delivered the Flyers and work, Website is not complete finish yet but this is depending on the client.
All in all the costs are around R19000 and deposit is paid of R3500.
Since weeks I'm running now after the client and always get the same excuses "next day payment will be made".
Today the arrogance of this client got a new high when we told him that we will go to court and his answer was simply " when it suits you then please go ahead"! WOW
The client have a healthy business and is really not poor, just simply arrogant.

So my question is as following:
Small claims court? Chances?
Debt collector agency?
Lawyer?
Police and open a case towards him regarding fraud?

Obviously this client is to arrogant and not even answer calls or whatsapp or sms.

I'm asking simply for advise what the next steps should be.

Thanks
Click to expand...

Look on Facebook
7f0b55472a90bd364074e22c72064372.jpg


this group, in between all the wanna be’s , there are actual lawyer type people
Who do respond, and if need be , they offer additional legal services at very reasonable rates
 
Crowley said:
Change the website to a single page that says "Client X didn't pay his bills"
Click to expand...
When you do this the odds of them paying is probably even lower. So to spite them, sure, but won't help to get your money back.
 
ijacobs3 said:
I don’t think you can use small claims court for “business” use, might be wrong though
Click to expand...
I've checked, following is written:
Who may institute a claim?
Anyone except juristic persons such as Companies, Close Corporations and Associations.


So I guess I can ONLY claim personal, because on the agreement is next to the company name also my full name and my signature? And I'm the company owner, I this right?
 
Last edited:
A few years ago, I was looking for a contractor to tile my pool. Giggle offered up surprisingly few options in Gauteng.

There was only one company that I could find - looked like a one-man show. I contacted him and arranged that he come and give me a quote, on a Friday morning. Eish, but this was one smooth-talker!! From the little research that I had done, it was easy to spot the bull. He did not even bring any sample tiles to choose from. Not one! When we concluded the meeting, he gave my the quotation and did that I must pay the full amount into his bank by the end of the day, otherwise he could not help me for at least 3 months because he had many big jobs lined up. If he received the full amount that day, his crew would pitch up with the 80-odd metres of tiles, the cement, etc. They would drain the pool, fix the large patches where the marblite was peeling off, let this set, paint on a waterproof layer, tile, grout and fill the pool by the Thursday (4 days).


I said yeah, I'll discuss with the wife and get back to him. That same night when I went into his website again, the was a big banner across the screen, with the message "this website has been suspended due to non-payment".

I decided not to use that man's service
 
Always provide hosting under the development of the site. That way, if clients don't pay, suspend until paid.
 
It doesnt solve your current issue,but agree with a deposit+milestoned payments for any long-term project
 
If you claim only 15k and take a small hit, you can go to the SCC.

Magistrates court will take far longer and cost you legal fees so rather take a 1.5k hit.

Send a letter of demand for 15k (or 14999, not sure of the exact threshold) and if no answer after 14 days, court.

Make sure to use this template and use a courier/registered mail for the letter.

http://www.justice.gov.za/forms/scc/scc_demand s29.pdf
 
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