Yesterday, a subcontractor working with our tradesperson came to us and complained that his invoice had not yet been paid. He rents out excavators. He asked us for our tradesperson’s bank details, supposedly to issue a payment order to trace the account. (How is that supposed to work without a court ruling?)
We politely refused and asked for understanding. He left and now intends to take legal action.
My question: The tradesperson is generally very nice and hardworking. It doesn’t really surprise me that he is currently having financial difficulties. He has three children, his car was broken, and he also mentioned an expensive dental surgery. Moreover, he only does the work part-time. Otherwise, he is employed, and who knows how much of his salary he is currently receiving during the COVID-19 period?
We were just about to do another small project with him. But now we are uncertain. Should we encourage him to settle his invoices first, or is that none of our concern?
We politely refused and asked for understanding. He left and now intends to take legal action.
My question: The tradesperson is generally very nice and hardworking. It doesn’t really surprise me that he is currently having financial difficulties. He has three children, his car was broken, and he also mentioned an expensive dental surgery. Moreover, he only does the work part-time. Otherwise, he is employed, and who knows how much of his salary he is currently receiving during the COVID-19 period?
We were just about to do another small project with him. But now we are uncertain. Should we encourage him to settle his invoices first, or is that none of our concern?
guckuck2 schrieb:
Don’t pay in advance. That way, you don’t take any risk. So this time, no down payment?
guckuck2 schrieb:
This can be done without a “court ruling” through a legal dunning procedure. Can you briefly explain that? Can the excavator rental company seize the account without a court’s involvement?
Then just bring it up with him.
Politely explain that you would like to give him the contract but are a bit unsure about advance payment. Work out a payment plan that satisfies both parties, and that should be fine.
If you are using multiple installments, that shouldn’t be a problem.
If he is unwilling to accept this and insists on advancing payment for such a small amount, I would stay away from it.
Politely explain that you would like to give him the contract but are a bit unsure about advance payment. Work out a payment plan that satisfies both parties, and that should be fine.
If you are using multiple installments, that shouldn’t be a problem.
If he is unwilling to accept this and insists on advancing payment for such a small amount, I would stay away from it.
matte1987 schrieb:
Then just bring it up with him.Yes, I will do that the next time we’re in contact.kaho674 schrieb:
So this time no deposit required? Well, your order volume will be in the low to now three-digit range. Refusing him the €100 (about $110) deposit … poor guy. Rumors like that can really do damage. Talk to him.
kaho674 schrieb:
Can the excavator rental company seize the account without court involvement? Yes, as long as the debtor acknowledges the debt or remains inactive. I have such a document here myself, valid for 30 years. Eventually, I’ll get my money back...
Just google “court order for payment” or “writ of execution,” it’s fully automated without a judge.
guckuck2 schrieb:
Well, your order volume is probably in the low to now triple-digit range. Refusing him the 100€ (about 110 USD) deposit... poor guy. That's how rumors can spread and ruin reputations. You should talk to him. Exactly. That small amount won’t break us. For me, it’s more about principle. If he doesn’t pay his invoices, that’s not acceptable. If someone has difficulties, you can arrange small installments, etc. But not paying at all—that’s someone I don’t want to hire.
guckuck2 schrieb:
Yes, as long as the debtor acknowledges the debt or remains inactive. I have a similar document here, valid for 30 years. Eventually, I will get my money ...
Just look up the legal dunning procedure; it’s fully automated and doesn’t require a judge. The excavator rental company probably has a document like that too. Of course, we are talking to him.
haydee schrieb:
Offer him the option that suppliers send their invoices for materials directly to you, and you only pay him for labor. That’s actually how it’s been with the materials so far. Only the equipment is charged fully on his invoice because it wasn’t clear right away what and when he would need everything.
Well, we only know one side of the story so far. I will report back on what he says.
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