Entrepreneurship & Small Business

Start up client can't pay at all. Is continuing work for them the only option?

  • Last Updated:
  • Aug 22nd, 2014 7:21 pm
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Deal Expert
Oct 6, 2005
16498 posts
2161 upvotes
johnlai2004 wrote:
Aug 12th, 2014 8:19 am
Yup. They say they want us to ensure this transition between us to another vendor goes as smoothly as possible.
Crazy they would expect you to do a transition. I would not do a transition until after the balance has been paid and a hefty transition fee were paid. You should collect ASAP as they look to be on the verge of bankruptcy so collect what you can before other creditors swoop in.

Also, the fact that the software is not fully paid for perhaps means that you may have ownership rights - so the new team may not be entitled to touch or modify the code until the company pays for it. However, a lawyer is best suited to determining such details :)
Sr. Member
Jul 10, 2005
754 posts
121 upvotes
Toronto
johnlai2004 wrote:
Aug 12th, 2014 8:19 am
Yup. They say they want us to ensure this transition between us to another vendor goes as smoothly as possible. I've noticed over the years the client feels entitled to many things, some of which seem unreasonable or goes against common sense....
When people in this thread suggest not doing ANYTHING ELSE for this client until seeing some $$$... it includes this training/transition
Deal Fanatic
May 9, 2007
5889 posts
956 upvotes
Vancouver Island, BC
I would think that by this time you would have a pretty god idea of the viability of the business. They say they have no assets, but if the business is viable, that is an asset.

If you consider the business is not viable, I suggest you initiate a civil suit. Then wait to see whether you were wrong and pursuing the suit would generate a payment.

If you consider the business is viable, I suggest you demand an equity position in the business as compensation for the $80K. With that equity position, you would have access to the financials and know about the business' ability to make ongoing payments. At that point, you might decide to leverage the accumulating obligations into a stronger equity position.
Earthlings, you're evicted.
You are not getting the damage deposit back.

God
Banned
Oct 16, 2008
1010 posts
626 upvotes
you're paying them with your time.
with a promise they might pay you later.bank and others wont lend them money to pay you?otherwise there would be monies in your pocket.

walk.
Deal Fanatic
Jul 4, 2004
7376 posts
627 upvotes
Toronto
I suggest you ALL watch this:

http://vimeo.com/22053820

F*CK YOU PAY ME.

(that's what the video is called - also my new fave phrase after watching it)

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