I'd say no, unless the outstanding money is significant. My experience is that you'll end up spending way more money, and still not get the debt paid.
Best to just move on, and put in place policies to reduce the risk of it happening again.
One possible way to force the person to pay up (and provided you've done whatever you promised to do in exchange for that money) is to threaten public naming and shaming of the individual/company.
Sometimes the threat of public visibility of their poor credit or payment behaviour can have more weight than a legal threat.
Something to consider.
Hope this helps
After COVID-19 caused months of delays, the Federal Budget has finally been released for 2020. In a year of social, emotional and financial turmoil for many of us, we were eagerly awaiting the...
Details were emailed to me today from an old contact. Is anyone able to shed some light on digital currency such as qoin and its liquidity? For instance, if you get paid with it can you readily spend...
Depends what you eman by 'safe'. I don't know the details of how Quoin is backed, but in principle, being backed by a finite resourse means that it can't be inflated to low values -that was the wau currencies were backed before the gold standard was abandoned for fiat currencies, which are backed essentially by confidence. Quoin uses clockchain tech to secure and record transactions as does Bitcoin - but despite that, a Bitcoin exchange was hacked recently, costing investors millions - and no government guarantees exist. I've now exhausted what i know about cryptocurrencies I'm afraid.
What are the most effective ways to finance inventory? When should I consider these options as opposed to straight cash purchase?
Sharing this question on behalf of community member, Tara Dixon: Do you guys have any advice on the Sole Trader supplement, does anyone have a clear understanding of; 1> how to claim 2>...
The Federal Govt will be introducing a Coronavirus Supplement of $550 per fortnight to individuals who are receiving certain eligible income support payments AND for the next 6 months will expand access to certain individuals as well. This expanded access will include Sole Traders, self employed and contract workers who meet the income test as a result of economic downturn due to the Coronavirus.
This will commence from 27th April 2020 so a short while off before you can claim.
Applicants are encouraged to claim through on-line and mobile channels or over the phone where you do not have internet access. Given the call lines are now open till 8pm, a call later in the day may be more productive to getting through. MyGov is one way you can make an application so if you do not have an account yet, set this up ready for when you can make a claim ( my.gov.au ). When you log onto MyGov on the home page you will see the following message about half way down
"Claiming a Centrelin payment. The fastest way to claim a Centrelink payment is through your online account. You can do this if you're linked Centrelink to myGov. If you have linked Centrelink to myGov and your circumstances are affected by coronavirus (COVID-19), you can register your intention to claim a payment. You only need to do this once. We'll let you know the next step to make your claim"
Below this is a Register Intention to Claim button to click
The asset test will be waived for the period of the coronavirus but income testing will still apply to other payments you receive consistent with pre coronavirus arrangements.
As quoted in this SMH article on how much small businesses earn: "For small businesses which filed as companies, 49 per cent registered a net income of between $0 and $25,000." Is this manipulated...
When you consider that a huge percentage of new businesses fail within the first couple of years, with many failing in their first year, it is not surprising that the owners don't have a good income.
On top of that, most startups rely on external money being injected into the business. This money is typically from the owner. It doesn't make sense to pull an income from a business (and pay tax on it) when you are pooring your own money into it.
And then when times are tough, suppliers and employees still need to be paid. Not paying them is a quick path to being shut down. The only person who is desperate enough not to be paid is the business owner.
Tax minimisation for the owner is handy for a short while, but then catches up to you when they want a bank loan. A "successful" business owner will have a reasonable level of income.
Of course there are cash in hand businesses, and tax minimsation going on, but overall the article reflects that most small businesses struggle.
Anyone thinking of starting a business would do well to read the article and know the failure rate statistics for new businesses before they start.
What are the best sources of funding for startups and small businesses?
Small businesses can be severely affected when big businesses are slow to pay them. Recent government initiatives are putting them in the spotlight, as Australian businesses take an average 56.4 days...
It can depend on the type of work and industry. Make sure you check their standard contracts and don't be afraid to ask for a change in the payment terms. The worst they can do is say no. What I find can usually happen is that you'll receive the details of a dedicated person who can help process your invoice quickly so it is in the accounting system and will be paid on the next cycle. It may not be perfect, but it's a manageable win!
How important was cash flow and did it ever take a back seat when you were growing your company?
Simple Answer, Cahsflow is King. We have come across many business were Cashflow problems have caused profitable businesses to get into difficulty. Almost always, that difficulty can be avoided
We have a blog on our website which talks about this exact topic in more detail