So my LLC and another small company went in together on a booth at a trade show last month. We agreed to split the costs 50/50, but the invoice from the venue came to my company, and I paid it in full. Now I need to get reimbursed by the other company. The problem is they're being weird about it, keeps saying they'll 'get to it' but it's been three weeks. How do you handle these shared expenses without it getting awkward? Do I need a contract next time?
Cross-company expenses
Splitting a shared expense between two companies is awkward
Send them a polite but firm email with the invoice attached and a clear due date. If they still drag their feet, consider it a lesson learned and move on. Not worth burning a bridge over a few hundred bucks unless it's a big sum.
Three weeks is nothing. I once waited six months for a 'partner' to pay me back for a shared ad. Had to hound them every week. Eventually got it, but the relationship was never the same. Next time, get everything in writing upfront.
Maybe they're just disorganized? Small companies often have cash flow issues. Have you tried calling them directly? Emails are easy to ignore.
This is why I always make the other party pay their share directly to the vendor, even if it's one invoice. Venue can split it on their end. Avoids the whole reimbursement dance.
You didn't have a written agreement? That's on you. Chalk it up to experience. For now, keep it friendly but persistent. A quick phone call might resolve it faster than email tag.
I'd send a formal demand letter if they keep stalling. It's not rude, it's business. You provided value, they owe you. Simple as that.
Honestly, this is why I avoid co-sponsoring anything. The headache isn't worth it. But since you're in it, maybe propose they pay you in installments if cash is tight? Shows flexibility.
Just wait until they need something from you. Then remind them. Karma and all that.
Send a friendly reminder with a dedaline: 'Hey, just following up on the reimbursement. Can you please process it by Friday?' If they don't, escalate. Keep a paper trail.
Three weeks isn't that long in B2B payment terms. Net 30 is standard. Maybe they're just slow. But if you agreed on immediate reimbursement, then yeah, they're taking liberties.
I've been on both sides. Sometimes the person who owes is just overwhelmed. A gentle nudge can work wonders. But if they're dodging, then you have a problem.
Next time, draft a simple one-page agreement. Even a text message confirming the split can be enough. Live and learn.
This thread is making me never want to split expenses again. But seriously, just call them. Emails are too easy to ignore. A phone call puts them on the spot.
I had a similar situation and I ended up eating the cost because the amount was small. But it left a bad taste. Now I always insist on splitting invoices at the source. If they can't pay upfront, I don't participate.