customer not willing to pay

[Geordie Spark]

To be honest matey you can have all the clauses in the world BUT some companies will pay when THEY want.

You need to factor in 30-60 days payment into your business.

On bigger jobs it makes perfect sense to stipulate payment after first fix and payment after 2nd fix/completion and certificates provided after payment received.

Tell me about it.

My customers included the Ministry of Defence, BT, an Opera Company, several bands, groups and musicians - some well known & others not so well known - most of the independent TV companies and a local independent radio station as well as the BBC, but I was often able to negotiate terms that were a bit closer to mine.

Those who reneged on the agreement had to find themselves a new supplier.

I agree completely with your comment: "On bigger jobs it makes perfect sense to stipulate payment after first fix and payment after 2nd fix/completion and certificates provided after payment received." My business at the time was nothing to do with sparking - it was manufacturing - but I employed the same tactics on big jobs. Money when the materials arrived and more as the job progressed followed my the final payment on completion and delivery.

Everything is negotiable and in 12 years the total amount I lost to bad debts was just under £1,500. Not too bad I reckon.

 

[martom]

Could you tell me then how much in percents do you let them pay:
Initially deposit
After first fix
After second fix / before you hand over certificates ?
I was thinking:
30% initially deposit
30% after first fix
40% after completion ? Does it sounds right?

 

[LlandrilloSpark]

My terms are printed on my invoice , but IMO you are entitled to your money on completion of the work, when you buy a steak in tesco you pay straight away, why do these people think it should be any different, it's a good idea to agree terms before, the Police would not be interested and your doing nothing wrong, it's your money that you are owed

 

[gazpeace]

It's not right though why should some customers have 28 days to pay, but when you take your car to a garage to have some work done on it they expect you to pay as soon as the work has been done.

 

[Octopus]

My terms are printed on my invoice , but IMO you are entitled to your money on completion of the work, when you buy a steak in tesco you pay straight away, why do these people think it should be any different, it's a good idea to agree terms before, the Police would not be interested and your doing nothing wrong, it's your money that you are owed

We should start a thread to name and shame companies who are poor payers, and I suspect there will be hundreds of well known names on the list.

Big companies, could and should pay on 30 days, then that would help the entire country.

 

[monkeyelectric]

I expect payment as soon as i've completed the work and i make this clear from the off unless otherwise agreed before work commences, if they don't agree then i just walk but then i am a stubborn sod sometimes and i've not lost work because of it, yet!

 

[LlandrilloSpark]

I've said before on these matters, forget the law, forget the small claims and go direct to a collection agency, this is an entirely legal way to do things and it works, these companies don't let go and look on it as its their money they are being cheated out of, when two 6' 4" Heavies turn up telling the cafe owner it's pay up or lose your latte making Machine...they pay

 

[richy3333]

I guess the OP has posted to other threads for people to comment that he is new to being self employed etc?

For me, when pricing a job I'm always assessing if I think the customer will pay or not. Don't be shy about talking about money, you're a small business and there to earn it. As my wife constantly reminds me, I'm not a charity! Everyone gets a copy of my business terms, end of and, as others have said payment terms and methods to pay me are on my invoices.

Don't forget about the Late payment of Commercial Debts Regs in England and Wales. This assumes interest and payment is due 30 days/1 month after the invoice is submitted if no more specific terms are agreed.

Use Thomas Higgins Solicitors for non payers, it has good results (has done for me) and is cheap.

 

[TaffyDuck]

You have to be realistic. I have commercial customers, the worst by far is Welsh Water, who pay on 90 days. I factor this into quotes for work accordingly. Some pay up to 10% extra for this "service" although they are of course unaware of this. I don`t mind one bit as where else can you get up to 40% pa return on your money legally.

Most commercial customers have book keeping systems in place where invoices are paid at a set time after receipt. Often at the end of the month or at the end of the month following receipt. Very few pay on the nail.

I don`t pay my suppliers when I walk into the wholesalers and get some gear. I get an invoice at the end of the month which is paid at the end of the following month. Therefore goods and services I may have recieved on 1st February may not be paid for until the end of March ( 30 days after invoice)

I quite agree with the client in this case, it is unprofessional to badger them for payment earlier than this UNLESS you have an agreement to be paid on completion of the work.

 

[Geordie Spark]

It's not right though why should some customers have 28 days to pay, but when you take your car to a garage to have some work done on it they expect you to pay as soon as the work has been done.

Exactly !!!

 

[Geordie Spark]

My terms are printed on my invoice , but IMO you are entitled to your money on completion of the work, when you buy a steak in tesco you pay straight away, why do these people think it should be any different, it's a good idea to agree terms before, the Police would not be interested and your doing nothing wrong, it's your money that you are owed

You're absolutely right - apart from the Tesco steak maybe ........

 

[Geordie Spark]

You have to be realistic. I have commercial customers, the worst by far is Welsh Water, who pay on 90 days. I factor this into quotes for work accordingly. Some pay up to 10% extra for this "service" although they are of course unaware of this. I don`t mind one bit as where else can you get up to 40% pa return on your money legally.

Most commercial customers have book keeping systems in place where invoices are paid at a set time after receipt. Often at the end of the month or at the end of the month following receipt. Very few pay on the nail.

I don`t pay my suppliers when I walk into the wholesalers and get some gear. I get an invoice at the end of the month which is paid at the end of the following month. Therefore goods and services I may have recieved on 1st February may not be paid for until the end of March ( 30 days after invoice)

I quite agree with the client in this case, it is unprofessional to badger them for payment earlier than this UNLESS you have an agreement to be paid on completion of the work.

And that's the trick ...... get it nailed-down tight and IN WRITING so everybody knows what the agreement is before you start the job.

Initially, it may take a bit of time typing/writing and faffing about with bits of paper, but when it all goes pear shaped you'll be glad you spent that bit of time because it will save you a lot of time and money.

 

[TaffyDuck]

You can`t compare buying a horse burger with doing work. You are buying a product. This is the way the world works, get used to it.

If you are employed you dont expect to turn up on day one and get paid do you, no. You expect to get paid at the end of the month so anything up to 30 days later and any overtime is likely to be another 30 days after that.

Try badgering your boss after a couple of days and see how far it gets you.

 

[Hiddo]

You can`t compare buying a horse burger with doing work. You are buying a product. This is the way the world works, get used to it.

If you are employed you dont expect to turn up on day one and get paid do you, no. You expect to get paid at the end of the month so anything up to 30 days later and any overtime is likely to be another 30 days after that.

Try badgering your boss after a couple of days and see how far it gets you.

Equally, you can't compare a PAYE with a lad running his own enterprise.

 

[saveloy]

What beats me is why any customer needs 30/60/90 days to pay an invoice. Just pay up FFS.

 

[Octopus]

I've got a client (not what I'd like to call him) who owes me £62.50 from Feb '12 - despite maiing him, and calling round not luck getting paid.

A couple of weeks back I called round and his son was there and he gave me his mobile number..... so I've texted him 3 times ad now have his email too... so I've sent copies of the communications to the son (who's in his 30's).... and the "son" has acknowledged the documents and has asked "Thank you so much for this info, pls allow me a few weeks to get to the bottom of this, we are going through some family problems at this stage."

Hum.......

 

[Geordie Spark]

I've got a client (not what I'd like to call him) who owes me £62.50 from Feb '12 - despite maiing him, and calling round not luck getting paid.

A couple of weeks back I called round and his son was there and he gave me his mobile number..... so I've texted him 3 times ad now have his email too... so I've sent copies of the communications to the son (who's in his 30's).... and the "son" has acknowledged the documents and has asked "Thank you so much for this info, pls allow me a few weeks to get to the bottom of this, we are going through some family problems at this stage."

Hum.......

How much are car tyres these days ......... he does have a car doesn't he???

Battery acid does a nice job of cleaning all the grime from a car's paintwork too.

 

[ian.settle1]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

 

[Silly Sausage]

How much are car tyres these days ......... he does have a car doesn't he???

Battery acid does a nice job of cleaning all the grime from a car's paintwork too.

I'm liking your thinking here but something more subtle for these Southerners I think!

 

[Geordie Spark]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

Well it was an interesting theory, but if they won't pay the principle amount, how much chance is there of them paying the interest??

- - - Updated - - -

I'm liking your thinking here but something more subtle for these Southerners I think!

I'm a Geordie bonny lad .............. we don't do subtle !!!!

http://www.youtube.com/results?sear....0.0.0.99.231.3.3.0...0.0...1ac.1.5tuh_SJi4Ok