[LRUG] To be paid or not to be paid, that is the question (sort of)

[Jeremy Longley]

Were the accounts of the people in Company A in the name of the company or
the individuals?  Presumably the former.

I would guess you have a clause in your Ts&Cs that terminates the contract
if the company goes into liquidation.  This doesn't particularly help you,
though; and re-signing those accounts with Company B won't buy you much
(unless you have any (eg) set-up costs associated with a new account).

The question you have to ask yourself is what is the risk of losing the new
account vs the money that you are owed.  You can play hard-ball with
Company B, but only if they have something substantial to lose if you
terminate the existing accounts.

Welcome to the world of business :-/

Jeremy

On 7 January 2013 14:56, Andrew Stewart <boss at airbladesoftware.com> wrote:

> Hello El Ruggers,
>
> I run an SaaS webapp.  I invoice customers (who are companies) monthly and
> they pay by BACS.
>
> One of my customers, Customer A, has three months' unpaid invoices.
>  Customer A recently went into liquidation and their staff was employed by
> another company, Customer B.  The employees from Customer A who now work at
> Customer B are continuing to use their account in my webapp.
>
> Customer B is happy to pay invoices henceforward but they refuse to pay
> Customer A's invoices because they did not take over Customer A's
> liabilities.  I spoke to the administrator of Customer A's liquidation and
> they said that realistically there's no prospect of my unpaid invoices
> being paid out of the liquidation.
>
> Here's my question: should I press Customer B for Customer A's unpaid
> invoices on the grounds that they are using an account which has unpaid
> invoices?  After all Customer B may not have taken on Customer A's
> liabilities but they have taken on A's data.  Or should I let it go?
>
> (Either way I'll be stricter about unpaid invoices in future ;)
>
> Thanks in advance,
> Andy Stewart
>
>
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