From May 1, 2009, prepayment (cleared funds) is required for all fax / email / voice broadcasts, unless in exceptional circumstances.
Until recently we were happy to accept ‘evidence’ that payment had been made, even though the funds had not actually reached our account.
However, given the current economic climate and a couple of recent bad experiences where we were too trusting in accepting the client’s word that payment had been made (and payment never eventuated), we have been forced to make this policy revision.
The first experience involved a company called Aktiv Finance, run by a Kate Moore. We were virtually begged to undertake a fax broadcast in 2007 to meet the client’s deadline. Client assured us that payment had been made by BACS (£1,319) and following the job she even commented how pleased they were. Payment however never arrived, and when we followed up, were informed that ‘as we have never signed a contract, you’ll have a hard job proving we authorised it’. It was as if she had never heard of a verbal contract, let alone the exchange of emails. Unfortunately the client soon went broke and the debt had to be written off.
Following that experience we tightened up, and on the rare occasions we agreed to let a job go without cleared funds received, we have insisted that we at least have the cheque in hand or in the case of a BACS transfer we be sent a screenshot showing payment made. This has worked well until now.
On April 28 and 29, 2009 we were asked to do a voice broadcast for a company called CNS Financial Solutions (Registration number 06723954). The work was instigated by one of its two directors, Mr Christopher Holmes. The cost of each job was £400 + VAT. (Total £920). Again, there was a sense of urgency and we were assured that payment was on the way to us by BACS. We were even sent the required screenshots. Click on images below to enlarge.
The second job was not fully completed and we were asked to send an amended invoice for this which would be paid immediately. Needless to say this also has not been paid.
Because of the above experiences with both Aktiv Finance and CNS Financial we must, with reluctance, require that from May 1st, 2009 all jobs can only be undertaken following receipt of cleared funds.
It’s a pity that the actions of a few bad eggs cause this policy change, but in the world of fax / email and voice broadcasting our margins are often quite slim and in order to recoup the losses (since we have to pay our suppliers irrespective) we have to undertake work that may be 3-5 times the value of the job for which we have not been paid.
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