Struggling to Get Paid for Consultancy Work: How Can I Ensure Clients Honor Their Agreements?

roopanagaraju@ymail.com
Dear Members,

Please suggest what actions can be taken if the company or client is not paying consultancy fees as per the terms and conditions. They have to pay 50k, but there is no response to emails, calls, and messages. Candidates are still working there, and they have not received their salaries yet because no business development manager candidates have been appointed.

I do not want to lose money, which means my efforts to schedule interviews are wasted. Please suggest how I can address this issue effectively.

Awaiting your feedback and suggestions.

Regards, Rooparani
[Phone Number Removed For Privacy-Reasons]
moseskao
Dear Rooparani,

What are the payment terms mentioned in your service agreement with your client? Usually, companies withhold the consultancy payment as it is difficult to recover the amount in case the candidate quits within 90 days or a replacement is not found. You will have to sort it out amicably with clients and understand what they have to say.

Thank you.
roopanagaraju@ymail.com
Dear Moses,

Thanks for the reply. They are not responding at all.

Terms and conditions:
After 30 days of joining: 50% of billing amount.
After 90 days: Remaining 50% billing amount.
Replacement for 90 days.

They are saying the candidate (BDM) has not generated any business, so we are waiting for the candidate's performance (this is not mentioned in the terms and conditions). Please provide some suggestions.

As a startup consultancy, we invest money. If the companies continue to do this, how can we survive?

Regards,
Rooparanj
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