I did a cleaning job and wasn't paid for it.?

I just recently started a cleaning business so I am not completely sure on how to handle certain situations. I am not registered or insured as of yet, but I do have my business bank account set up so I can file my taxes correctly. I have been paid in full for every job I have done in the past, as soon as the job was completed. I was hired a couple weeks ago by a guy that owns a construction co. Its a LLC in his name. He hired me, I showed up with my crew, did the job, then after we finished it he said to send him an invoice by mail or email. I sent it thru email the very next day. Its been 2 weeks and no check has arrived. Now he is not returning my emails or calls. What is the best way to handle this? I have had to pay my helpers out of my own pocket so I am out a LOT of money for this problem.
I did a cleaning job and wasn't paid for it.?
Just a few thoughts and suggestions. We work with the construction industry regularly and it has been our experience that they are usually taking 60 + days (on average) to remit payments to their vendors. In the future you might consider using a triplicate copy 'work order' signed off by someone in authority (indicating that your work was completed satisfactorily on a specific date) before your work crew leaves the premises upon completion of the work. Additionally, I would add a footnote to the work order that this is an "Invoice" payable when presented and will accumulate late late fees at 10% monthly compounded if not paid in (you specify your terms by inserting the number of days you will allow). Give the customer a copy, ask for payment right then,giving them a copy of the 'work order invoice' or you can just and tell them it mus be mailed by some specific date. If the check is not received in a timely manner you can use the signed off 'work order invoice' as a legal means for collection services to get you your money.


You might also look into establishing a relationship with a credit card processor with portable equipment. Accepting credit cards means that you get paid faster but for a fee of several percent on every dollars worth of business applied to a credit card.
Reply:The fact that he is not returning your calls is a big red flag and indicated, to me, that this is not a situation of 60 day delay in pay-or he would have told you that!


Marie has the right idea and why contracts, bid %26amp; estimate forms and other paperwork and documentation are important if you want to run your business right.-see my profile for more on those.


At this point, I would send via mail an invoice then follow up in a week to 10 days with a copy of the invoice and a demand letter (which basically says pay this amount by this date). If that doesn't work-and I suspect it won't- then you can take him to small claims court.


I also might investigate whether you can put a complaint in at your state's contractor's licensing board and, if there is one, the county contractor's board.


Good Luck!
Reply:I was a janitorial business owner for 16 years. This has happened to me in the past. I let it go at the time, but now I would handle it differently. I would report him to the Better Business Bureau. I would "network" and tell all others not to do business w/ this company. And, I would get an attorney to sue him for wages unpaid.
Reply:Well you can call his office, if he has an office and ask for Accounts Payable and ask them when the bill will be paid. You can also explain your situation to them, that you are a very small business and that you paid people out of pocket and that you need that money as soon as possible. Normally on invoices they will take 30-60 days to pay you, I don't know what you put on the invoice for Payment Terms, if anything.





If you can not reach a solution this way the only other alternative is to take him to court. You would do this by obtaining a Warrant in Debt from the Clerk of the General District Court in your area. It costs money to file a Warrant in Debt, around $50.00 and then you have to go to court and explain the situation to the judge, they will issue a judgement and sometimes those are hard to collect too. Once you have a judgement you can garnishee his bank account or issue a levy which is where the Sheriff's go in and tag his possessions and sell them at public auction until you get your money. Levies and Garnishments also cost money.
Reply:Most businesses have net 30 terms, meaning they don't plan to pay until 30 days later. If you can't handle the slow cash flow, ask him for net 15. You should always negotiate this from the beginning.





You can't possibly complain to the Better Business Bureau after two weeks. Unfortunately they'll laugh you out the door. I don't like it either, but it's true.