Please can any one help with some advice & at the same time this is a warning to those who are self employed...

I am a self-employed Marketing & PR consultant specializing in new media including music. I did a deal last May for almost 30,000SFr for a seven month contract starting June & ending December 2008 giving the client the option of paying in instalments (or rather they requested this). I insisted that they paid the first instalment in July as a deposit by the first invoice (which they didn't) but would be fairly flexible with the other payments as they were seeking new investment they told me.

This deal was done with a crystal clear contract ...I never work without them but to cut a long story short, this contract seems worthless now as they tell me they don't have any money to pay me...they are using my work (Logo's/Music/Graphics/Photography & also new business, advice/contacts etc etc) but have not paid me ANYTHING. The terms for owning the copyright of these logo's/music/graphics/copy writing etc are actually stated as attachments to the invoices (in other words they only own them when the invoice is paid) so maybe I could also go down this road?

I did a Betreibung as I had issued reminders (mahnungs) as advised here on this forum before (a 30 day & a final one of 10 days though the first payments were already 3 months late by then). I had to do this against one of the partners as the other (I was advised by one Betreibungsamt) had a bankruptcy issue & I was told I probably wouldn't get the money. It turns out that the other partner when I went to do a Betreibung also has (even worse) bankruptcy issues & although I have done it I'm told it is very doubtful I will get anything in the end.

I won't go into details but I have a young family & this has called major problems especially leading up to Xmas.

I know now that I can (& how I can) check the credit reference of future clients if I think it is better to offer them flexible terms but want to be as sure as I can about getting paid.

What annoys me & has amazed me is the fact that I have a Bona-fide contract (checked by a lawyer friend of mine) which seems not to be worth the paper it is written on if, in this case, I am dealing with clients who (maybe) have seen me coming?

Apart from that I cannot re-invest some of this money in my business (which before this happened was doing really well) so it looks like I will be unemployed for 2009 unless I work back in the UK & commute (though this is not a perfect option as I have a new baby of 4 months I don't feel like being too long apart from at this moment). Another reason why I decided to become self-employed 2 years ago is because I could not find a permanent job - what a mess!

Excuse me in advance if I cannot reply until later or tomorrow as I am away for the night but really wanted to write this as soon as possible to see if anyone has had a similar experience or perhaps may be able to help?

Didn't you check their records at the Betreibungsamt before you granted them credit?

No, I didn't, was that stupid of me not to?

For a credit of 30'000 CHF? I would say, yes.

Even without doing what Tilia mentioned you should of stopped working for them as soon as the first payment/deposit was not received and started chasing the money from then.

To be honest I didn't really know how the system worked until now & maybe trusted a bit to much but then again, I knew I could always stop mid-campaign (which would have messed them up) or within the first 2 months but they always kept promising dates they would pay until the fifth & then I refused to do any more work until paid.

So it's really 4 months of work they owe me (around 16,000.-) which I would be happy to void the contract if they paid.

Yes, you are right.

If they ain't got the money, they ain't got the money. Your only choice as I see it is to go down the route of Betreibung and see what comes out of it. It's a long process though so it will take time for your to get your money, if any.

Is there any chance that they actually have cash? In that case, is there anything you can use as leverage? Something you have that they really need.

And learn your lesson for the next time of course.

There is, I have a 100,000.- contract waiting for thembut sent a mail telling them I offer it to a different company IF they don't pay by end November...will see what they do with that in mind, be back tomorrow, thank you all...makes me also feel better to share this, cheers tn

I think you should look into copyright infringement as well. If they are using your work since they haven't paid for it, it belongs to you.

Yes, I will wait for whether they oppose the Betreibung & when they have all their printing done hit them with that as well!

Ironically the Betreibungsamt were really nice & didn't even charge me the 100SFr fee!!!!

Btw thanx so far for the help

Transition, if you do a search , somebody had a similar problem to you and I remember Richard giving some excellent advice. I am not that good at finding info and do not know how to post it if I did find it - but it is there...

Thanks, that would be good
Is Richard his EF name or real one please?

EF name. Good luck.

Thanks I will go for it...I was just going to say that this is not the first time this has happened here in Switzerland for me but not to this extent & I am determined that they don't get away with it.

Which bit of "yes" do you have problems with ? sorry to be so blunt, but that's life

I did my dad's company invoicing and accounts for several years - he and I knew all his clients very well...

No pay, no work... ah yes, and some people you just don't do business with...this is a fact of life...

I'd hate to be in your position, but contracting to a single client is a very risky way of doing business - as you have discovered.

On the other hand, he once had a client who paid a percentage of the bill plus signed him over shares in the company - Dad figured he wasn't going to get any money if the guy went bust anyway, so he accepted the shares...three years later the company had gained value - from a $2000 debt to a $6000 asset...just pure luck.

if your client goes bankrupt, then you aren't going to get anything at all - better to try to wheedle the money out of them... do they really have cashflow? - somehow you have to convince them that it's more important for them to pay you than any of their other creditors...

I like the copyright thing...that may be the only bargaining chip... I wonder if you can serve a copyright infringement document on the printery ? - so they get caught because the printer won't want to get sued for infringement of copyright...hmmm...

Please explain, not really sure what you mean?

Yes, definitely an interesting part of all this...i have the feeling to wait a bit as I may have more leverage..

Your question: have I been ripped off?

One reason for getting a new client is often that no one else will touch them. If it comes easily, be suspicious. I never do any work for someone new without receiving some sort of payment up front.

...and it's not just Switzerland. the UK is far worse for slow/bad/none payers...