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I'm not into webdesign so don't know if you can do this but if you set up their hosting etc can't you threaten to pull the plug on it if they don't pay. I hate unpleasantness too but sometimes you have got to be heavy handed- I'm not suggesting you do that just yet but I would certainly write them a letter and send it via recorded delivery explaining that they agreed to your terms and conditions and should therefore pay the remaining balance within X amount of days. Also make it clear that if you don't hear from them or the outstanding balance isn't received you will refer the matter on to your company solicitor.
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