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Ask HN: Handling an international non-paying client

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Ask HN: Handling an international non-paying client

#1

Post by ycombosnator »

tl;dr foreign company hasn't paid my team's invoices, we probably can't sue, what else can we do?

I contracted with an overseas company and was paid for most of my work there. Unfortunately, the company hasn't paid my team for the last few months of our work. We're now coming around on 9 months since the due date.

The manager still promises payment but always has new excuses. The company has not gone under and actually has even hired new contractors, albeit in different divisions.

Due to the fact that this company is on the other side of the globe, a lawsuit is impractical.

Are there any other tactics we might employ, such as public shaming blogs, glassdoor reviews, etc?

edit: thanks for all the helpful feedback. Some more details: we have not worked for quite some time (basically after it was clear that something was wrong with payments). I've escalated this to the CEO, he/she has ignored our contacts. This company is in Australia and I am in the US.

Re: Ask HN: Handling an international non-paying client

#3

Post by toomuchtodo »

valarauca1 wrote: post #2

Close repos, stop working, if they ask why or ask for a copy of the unfinished work. State they'll receive it on payment. They play hardball, you play hardball. That's life.

This is the best advice without getting an international business law professional involved.

Re: Ask HN: Handling an international non-paying client

#4

Post by carterparks »

I'd avoid the public shaming but I would threaten legal action even if you aren't prepared to follow through. I might even hire your general counsel to write a threatening letter. And yes, stop working now. As you probably know you should have stopped months ago.

Re: Ask HN: Handling an international non-paying client

#5

Post by sauere »

The first and most important step: stop working, do not answer any questions, do not deliver anything. Demand your payment.

How much is the amount we are talking about here? I have seen some people in similar situations and things never ended well. Some invested five-figure $$$ in lawyers and legal fees and never got a penny back.

Re: Ask HN: Handling an international non-paying client

#7

Post by zoner »

Tell the local autorities that they are using your copyright material without permission, therefore they're breaking copyright law. It's an offence in most countries and will involve confiscation of evidences (servers or computers).

It's easier if the foreign country has an embassy in your country.

Re: Ask HN: Handling an international non-paying client

#8

Post by tkinom »

This worked for me once a long time (10+ years) ago. Collect emails as evident and stop working. Send them a email and tell them I send all the emails correspondent to a collection agency.

The last email got me the full $4k invoice paid in full in one week after weeks of delay.

In the future, setup project in milestone phases, next phases won't start until payment received. AND written in the statement of Works/Contract that you will only provide the source code and / or assign the copyright over until the payment is received in FULL.

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