Customer Payment.

[highspark]

Having problems receiving money from a client. They are either ignorant, arrogant or both. I put my invoice in a week last Friday.

We are small business and rely on fast payments to cover wages costs and material costs. However I have still not received any form of payment. This was a private installation not a business to business.

Not sure what the next move is. I know they get 30days to pay up but I feel as though they are the holding money back for no reason. It's £4000, so hardly something we can let go.

 

[Plonker 3]

Have you spoken to them and politely asked when they will be paying you?

 

[highspark]

Yes I sent them a follow up email and I have had no reply.

 

[Plonker 3]

Hang on have you phoned them, or just sent a email?

 

[shanky887614]

give them another week then send them a notice before action letter giving them a week's notice (will bring it to end of 30 days)

That you will get debt collectors involed

 

[uksparks]

In my experience, you are best off going round to speak to them and ask them, give them one chance to pay, if they don't do it, go to http://www.moneyclaim.gov.uk

Don't mess about, just issue them a court request thing, usually works, its really easy to do.

 

[dazza1981]

Have you spoken to them and politely asked when they will be paying you?

Ermmmmm probably

 

[highspark]

Hang on have you phoned them, or just sent a email?

I have spoken to them face to face and via telephone. On both occasions they said they would transfer the money over. Never had this problem before and the worst of all they seem to be a genuine couple.

the email was a formal way to ask for the money so that I had record of it.

 

[Plonker 3]

Send a copy of your email by recorded delivery so the you have proof they have received it.

Then if still no response send a final demand after the 30 days again via recorded delivery.

If still no payment then as uksparks said go to the small claims court.

 

[imago]

Why do you say they have 30 days? If that's what your terms and conditions say then you'll have to wait for 30 days. If you don't specify 30 days on your terms, what does it say regarding payment?

 

[uksparks]

The terms of payment are YOUR terms, so if you specify 7 days and they agree, its 7 days. I always say payment within 7 days. No way am I waiting 30 days for the money, if they cant afford it when they want it doing, they wont be able to afford it in 30 days.

 

[highspark]

Quotation, said payment upon completion. Invoice said within 7 days... It's past the 7 days.

 

[imago]

In which case send a final demand giving them seven working days to pay. If they don't pay, use the money claim service as UK sparks posted.

 

[fatrodslover69]

i think you should stick some poles up there ***** !

 

[Octopus]

The terms of payment are YOUR terms, so if you specify 7 days and they agree, its 7 days. I always say payment within 7 days. No way am I waiting 30 days for the money, if they cant afford it when they want it doing, they wont be able to afford it in 30 days.

Er no, your terms can say what they want, but customers will pay when they want. And don't try taking legal action too soon or you will lose!

 

[Geordie Spark]

Having problems receiving money from a client. They are either ignorant, arrogant or both. I put my invoice in a week last Friday.

We are small business and rely on fast payments to cover wages costs and material costs. However I have still not received any form of payment. This was a private installation not a business to business.

Not sure what the next move is. I know they get 30days to pay up but I feel as though they are the holding money back for no reason. It's £4000, so hardly something we can let go.

Did you make your "client" (I hate that word - it's what solicitors and prostitutes have) aware of your terms of business BEFORE the work started, or did you just spring the fact that you expect to be paid on the day of completion on them??

 

[dan86]

Did you make your "client" (I hate that word - it's what solicitors and prostitutes have) aware of your terms of business BEFORE the work started, or did you just spring the fact that you expect to be paid on the day of completion on them??

Quotation, said payment upon completion. Invoice said within 7 days... It's past the 7 days.

post #12 Geordie

 

[Geordie Spark]

post #12 Geordie

Thank you.

My appointment at Specsavers is now booked.

 

[telectrix]

Thank you.

My appointment at Specsavers is now booked.

see you at the dentist's then.

 

[imago]

Er no, your terms can say what they want, but customers will pay when they want. And don't try taking legal action too soon or you will lose!

Sorry, but that's nonsense. Terms and conditions along with the quote form a contract. Failure on the part of either side to comply with the contents is a breach of contract. Breach of contract is actionable in law.

So if you put seven days and they don't pay then you are required to send a letter informing them that they are in breach and giving them an additional period, a further seven days for example. The letter should also state that if they fail to pay within the specified extension legal action will be taken. Fill out the details online and away you go.

Pay when they want my 4rse. The day I can go into a supermarket and pay at some unspecified point in the future is the day I'll let my payment terms slide. Which by the way are payment on completion. Don't like the terms? Use some other mug.

 

[Octopus]

Sorry, but that's nonsense. Terms and conditions along with the quote form a contract. Failure on the part of either side to comply with the contents is a breach of contract. Breach of contract is actionable in law.

So if you put seven days and they don't pay then you are required to send a letter informing them that they are in breach and giving them an additional period, a further seven days for example. The letter should also state that if they fail to pay within the specified extension legal action will be taken. Fill out the details online and away you go.

Pay when they want my 4rse. The day I can go into a supermarket and pay at some unspecified point in the future is the day I'll let my payment terms slide. Which by the way are payment on completion. Don't like the terms? Use some other mug.

Its no nonsense, its fact. Especially if its a small company against a large one.

 

[NickD]

In my experience, you are best off going round to speak to them and ask them, give them one chance to pay, if they don't do it, go to http://www.moneyclaim.gov.uk

Don't mess about, just issue them a court request thing, usually works, its really easy to do.

But don't forget to follow the Pre Action Protocol, which is mainly about sending a correct Letter Before Action.

 

[R G]

I always state on the quotation "Balance payable on Completion Before we leave site" this has worked so far, I would confront the customer ask if there is a reason for non payment ,

 

[NickD]

Sorry, but that's nonsense. Terms and conditions along with the quote form a contract. Failure on the part of either side to comply with the contents is a breach of contract. Breach of contract is actionable in law.

The four main ingredients for a valid contract in law are: offer, *unconditional* acceptance (an acceptance with conditions is not an acceptance, it is a counter offer), intention by both parties to form legal relations (basically you both meant it to be a real deal, not "See you at 1pm and I'll buy you a pint"), and consideration (things of value being exchanged, such as goods and services in return for money).

There are a shedload of reasons why contract terms and conditions can't actually be made to stick. It's not as simple as "it was in the written T&C and they accepted it, so it binds".

 

[imago]

Its no nonsense, its fact. Especially if its a small company against a large one.

It's not a fact, and I can say that from personal experience. Two customers have been late paying me. One a private individual, the other a large charity. In both cases I did exactly what I described above, and in both cases I got my money, plus the interest from the charity and plus costs from both. That's a fact, not opinion, not what some bloke in the suppliers told me, real world, verifiable, documented fact.

 

[NickD]

Having problems receiving money from a client.

Is it Building Control notifiable? If so, don't notify until they pay. Believe you only have 28 days from job to notification so tell them that's their payment window (or something a bit shorter). Remind them that they as owner are liable for notifiable work not notified which is a criminal offence with a large fine. And perhaps you would feel under a duty to notify BC if they have work done which isn't notified.

 

[vxwestie]

People expect 30days terms, simple as... If you want to succeed in business you better get used to it!
If I was to ask for deposits, payment on completion or started expecting a cheque before i leave site, I'd lose 99% of my customers.
If you start chasing money or threatening legal action after a week or two you'll just make yourself look a fool.
whats written on the bottom of your invoice or in 't's & c's' may be the right thing in court, but in the real world they don't make a sheet of difference.... People pay when they want.
Im a one man band, if I began to worry about 4k after a week or two, I'd be looking at a different career direction.
Sorry to be harsh, but it's just business, as 'sheet' as it might be...

 

[ian.settle1]

Think they have 30 days in law to pay the bill (then you can charge interest) even if your T & C say payment within 7days, if you go chasing before the 30 days threatening a debt collector you could end up on the receiving end of a court case for harassment or something.

As has been said if you are after the money to pay your men after 7 days you don't seem business savvy,

Also remember that if the word gets round that you chase people for money after such a short time people may think you are in financial trouble and you may go bust and the work you are doing for them may not get finished, thus if this happens you will go bust as you will not get any work.

 

[imago]

There is no such law which allows 30 days to pay no matter what, it doesn't exist. Any and all transactions are covered by contract law. Instead of listening to all the barrack room lawyers spouting nonsense, either read up on it or ask a solicitor.

As for how to run a business, if the above are examples no wonder so many small businesses go bust. Still, each to their own. You run your businesses how you want, I'll carry on getting paid on time.

 

[vxwestie]

Exactly my point. It's all about running a business and that involved keeping customers and keeping work.
Im not saying anyone should wait a unreasonable time, but most people will consider 30days to be a reasonable time..... Just as you do your wholesalers I expect.
Its what ever works for you... In most circumstances people pay when they want...