Ask HN: Deadbeat Client – Owes us 25k – What are my options?

Re:Ask HN: Deadbeat Client – Owes us 25k – What are my options? by throwawayz on Sunday May 07, 2017 @03:29PM (#14287121)

great tips and terms!

luckily I had the the IP ownership > full payment one in our contract. But i like the 'full-coverage' option too. I will even add an extra penalty for last minute pull-outs/or just ask for a 25% retainer.

Having never dealt with the CEO, i sent him a VM to his home, which i heard later he was shocked to get.. which kindly asked him to respond to my email that went:

    This is Joe, CEO of XYZ, the studio which has been faithfully working on your new products since last year.

I’ve tried inquiring with Patricia as to when we could expect payment of all our outstanding balances to-date ( see below ) -- only to have been repeatedly given various specific dates which have come and gone.

Her last update to me was “Sorry I have no more info..thanks for your patience”.

Please understand we are a very small operation which relies on timely payments to stay in business.

We only have a few select clients we honorably service with the highest standards and transparency, as we value the long-term potential of each relationship.

We've been very flexible with the delays and would like to confirm - personally with you - as to when we can expect payments of the (three) 60, 50, and 30 day late invoices.

Once they are fulfilled, we can happily continue rendering our services and finish up this incredible app.

—his reply —

    I got your phone call; it’s my understanding you are in frequent conversation with Pam, and she has been trying to keep you as updated as possible.  We have been in a bit of a financial squeeze ourselves, in part because funds we thought were coming in didn’t, and that has affected our ability to pay what we owe to you and some others.  I do expect that we will have clarity next week with regard to when we can make the payments due.  As a small business ourselves, and someone with many years experience in that position, I know how difficult this can be and we really do appreciate your understanding.

—my reply —

    Thanks for your timely response.

If you've been in my position you then you fully understand the entire situation.

I absolutely need $5000 by next week to fulfill both my employee and family commitments on my end.

The last thing I want to do is purse alternatives. What is the likeliness of this payment?

—to which his COO decided to call me and commiserate with no clear deferred payment plan and just a sob story.

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Re:Ask HN: Deadbeat Client – Owes us 25k – What are my options? by arthurcolle on Sunday May 07, 2017 @03:35PM (#14287159)

Close to zero chance you will receive the money by next week.

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Re:Ask HN: Deadbeat Client – Owes us 25k – What are my options? by throwaway477 on Sunday May 07, 2017 @10:20PM (#14288837)

If you have the IP as of now, you may be able to use that as a pressure point. IANAL, but I used this successfully with a deadbeat client. The client had run low on money after I finished an iPhone app for them. They had been distributing the app on the app store, but hadn't made the final payment, which was five figures. They were still paying the Android contractors, who hasn't finished yet. After they stopped returning my calls for several weeks, I called up their main investor, who they needed a follow-on round from, and told him that they didn't own copyright to their app. I got a call back a couple of hours later, they claimed poverty, but that they were getting money real soon. I offered them a one week license for $2000 paid that day. I had to do this a few more times before they eventually paid the balance. They wanted a final copyright assignment letter from me at the end, presumably to show the due diligence people from their investors.

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