COVID-19 Q&A | Sintons | Debt
During these unprecedented times, where the situation is changing on a daily basis, we are aware that individuals and business owners will have many questions and uncertainties about how these developments impact on them.
Here, through a series of Q&A with expert lawyers from across our firm, Sintons hopes to be able to answer some of those pressing questions, and provide some certainty and clarity for people who are unsure how to proceed.
We will bring you a question and answer per day for the next few weeks.
Q – I am a freelancer and have unpaid invoices which the companies involved claim they cannot afford to pay in the current climate. What are my rights?
A – Whilst we accept that these are unprecedented times, your right to be paid for the work you have done has not changed. If your customer is simply delaying paying you to manage their own cashflow, then they should be encouraged to make paying your invoice their priority.
The Government has announced a range of financial support for business and individuals through the COVID-19 crisis. If your debtor is genuinely struggling, they should be directed to this support and if they are not accessing that support then you will want to know why.
You do have some protection and Government guidelines stipulate that a customer must pay you within 30 days or receipt of goods/services, unless you agreed other payment terms.
Whilst you may be able to recover a debt relatively easily if there is little dispute of fact, occasionally you may be left with no other option than to escalate the situation and take legal action.