Warning about Kewgreen Hotels Ltd

[cr0ft]

Hi all,

I wanted to let you guys know that we had a lucky escape with a firm that is 'too big to offer payment terms in writing'. This company runs many Holiday Inn franchises and other hotels around England.

On arriving at a call out I became aware from staff that they had hacked off some of the largest plumbing firms in Lincoln by not paying them promptly. The GM of the hotel I was due to work at would not confirm payment terms/periods in writing so we decided not to do any further work for them.

Just thought I would pass the info around to save anyone else getting into hot water with them. Commercial bits are certainly expensive and I am sure no one wants to work with a company that doesn't guarantee when they will bother paying!

Shocking practise but one that I am becoming aware is fairly common place in the UK with larger companies.

 

[Linkyplumb]

How dare you be so impertinent to ask for payment terms, LOL

Cheers for the heads up

 

[IDCHAPPY]

Most of the big guys are douchebags... must go with the territory :lol:

 

[cr0ft]

I politely let their commercial director know by email that I thought it was all a bit sneaky. Apparently their payment terms are 'typically' 45 days. Your invoice can't and won't be accepted though until he submits a purchase order. This is done after work is completed. I would imagine 90+ days of waiting for money easily with that process.

It should be illegal in my opinion.

 

[lame plumber]

it is illegal according to what the government has stated, payments should be prompt and paid within 30 days max, issue a small claim against them and add interest as stated in your terms.

 

[cr0ft]

Hi Lame, do you have a source for that please??

 

[Ray Stafford]

Hi Lame, do you have a source for that please??

This link may help

The trouble is, statutory interest is not sufficiently punitive.

What will happen is you do the work and lets say your invoice is £5,000

After 30 days you start adding interest. So by 120 days, they are 90 days late. Statutory interest (SI) is therefore £5000 x 8.5% /365 x 90 = £104.79

They eventually pay your original £5000, but not the SI. They say that they cant pay the SI because their accounts software wont process anything without a purchase order. You have to decide whether its worth you chasing for the £104.79, knowing that it will take more of your time than its worth. So you forget it.

In the meantime, your business has been without the £5000 operating capital that it needed for 90 days.

Several such clients and your cashflow is under severe pressure.

 

[WHPES]

Most of the bad payers are well known round here. If you get a company miles away calling you up its probably because none of their local companies will deal with them.

On the other hand I have a few large companies I deal with who pay immediately they receive a invoice. They say its because the appreciate my rapid response and quality workmanship. The result is that when they have a problem I will give them priority service.

 

[WaterTight]

This link may help



In the meantime, your business has been without the £5000 operating capital that it needed for 90 days.

Several such clients and your cashflow is under severe pressure.

Several? £5000 is roughly five thousand times my operating capital.

 

[lame plumber]

This link may help

The trouble is, statutory interest is not sufficiently punitive.

What will happen is you do the work and lets say your invoice is £5,000

After 30 days you start adding interest. So by 120 days, they are 90 days late. Statutory interest (SI) is therefore £5000 x 8.5% /365 x 90 = £104.79

They eventually pay your original £5000, but not the SI. They say that they cant pay the SI because their accounts software wont process anything without a purchase order. You have to decide whether its worth you chasing for the £104.79, knowing that it will take more of your time than its worth. So you forget it.

In the meantime, your business has been without the £5000 operating capital that it needed for 90 days.

Several such clients and your cashflow is under severe pressure.

the good thing about small claims is the judge, if you have to go that far normally sides with the little man and allows you to charge for time taken chasing and time in chambers etc etc, and the one time I had to sit in front of the beak and won, the original bill was around £500, but I got another £700Plus for interest, costs etc. made me smile