pay your invoice or watch your windows

[buzzlightyear]

I'm sick and tried of sending invoices to customer saying pay within the seven days and some customers try and pay late .I run a business not a charity, I now you have to give them 30days to pay in the invoice ,but stuff that ,we have all been their waiting for payment .I now send them pay now or face the wrath of buzz.

 

[Octopus]

You are too up tight about this

I chase after 30 days .... Rarely before

That said the vast majority of my clients pay within 7 days

Building up a cash balance in my business account allows me to take this approach

 

[buzzlightyear]

I have sent many invoices out and tell the price and say if this invoice is not paid before the 7 days and extra charge will be added .more letters more mails or stamps more bullets.

 

[Octopus]

I have sent many invoices out and tell the price and say if this invoice is not paid before the 7 days and extra charge will be added .

Good luck with that approach .... sounds like it doesn’t work

7 days for payment is a bit quick imho .... unless it’s after the 24th of the month

 

[buzzlightyear]

Good luck with that approach .... sounds like it doesn’t work

it does on some occasions. but the odd one .try it .

 

[Octopus]

it does on some accessions. but the odd one .try it .

Accessions ?

 

[buzzlightyear]

Accessions

thanks

 

[Octopus]

thanks

For what ?

 

[buzzlightyear]

For what

a mistake ,spelling .

 

[Gavin John Hyde]

If you want to be called back for future work then i guess it s a fine balance, if you dont want to get called back then a nice letter for a couple quid from one of the late payment outfits normally does the trick, who will go on to collect the monies owed if necessary, if the sum is sizeable then they can of course add there fees to amount being recovered.
being 85% domestic work the trusty chip and pin machine comes out, i only take bacs when i know the customer and have a prior relationship.

 

[dmxtothemax]

If you want your customers to pay within 7 days ?
Then you need to make this quite clear to them in the beginning.
Even put it on the quote/work order
Charge more for account customers
You cannot assume that the customers know better.
YOU NEED TO TELL THEM !

 

[buzzlightyear]

for a couple quid from one of the late payment outfits normally does the trick,

who's that Roonie and Roonie krays.

 

[buzzlightyear]

had one yesterday e mailed me saying will have to pay over two days .
oh yeah .and next thing please ignore the first email sent payment in full..

 

[Darkwood]

'Standard' business practice is 28-30 days and should be included on your invoice if not otherwise arranged, if you do not receive payment within this window then usually a reminder after 7-14 days overdue and a second a further 14 days for immediate payment, this can be different with large companies who pay on 60 -90 days but that is your choice to take the work on.
If you do not follow this standard practice then you must pre-arrange payment terms with your customer, failure to do so does not favour you legally or help your reputation.
I get where your coming from, suffered the hard times, slow payers etc so have full sympathy but you need to ensure everyone is aware of your terms, if this is already the case then I fully am on your side here.

 

[Darkwood]

PS - I'll add to the last post, this is business terms with other businesses, most domestic customers have no knowledge of what standard payment terms are hence you can dictate them prior but it is complacent to expect immediate payment hence one must make ensure everyone is singing the same hymn sheet.

 

[buzzlightyear]

may times a come home with 5 magic beans , one day i might come home with a cow , kids will love this free milk .and take it to tescos.

 

[Andy78]

I have sent many invoices out and tell the price and say if this invoice is not paid before the 7 days and extra charge will be added .more letters more mails or stamps more bullets.

Try it the other way round. Add on 5% then say there is a 5% discount for payment within 7 days.

 

[Darkwood]

Agree with Andy78 on his point, your invoice is a bill of works, it shouldn't include threats or you are already off on a bad footing, you factor in 5% first then the customer can redeem that with prompt payment but as said before it must be pre-arranged agreement - if they don't then it pays for your admin costs of chasing the debt after agreed terms, if they do they save 5% without you losing out.

 

[Bellendian]

There is nothing wrong or threatening about putting payment terms on invoices, in fact my book keeper insists that I do it. Perfectly standard to raise an invoice with a simple statement of 'terms: upon receipt' unless of course terms already determined through contract negotiations.

 

[Toneyz]

I have sent many invoices out and tell the price and say if this invoice is not paid before the 7 days and extra charge will be added .more letters more mails or stamps more bullets.

What sort of customers are they Buz individual homeowner, builder, commercial?

 

[dmxtothemax]

Business paying at the end of the week is comon place,
Even paying at the end of the month is common
especially with larger corperate style business.
They seem to expect you to know this.
The best way around all this,
is to sort it out in the beginning,
so both sides know and agree.
If you just expect them to understand,
you could be in for a shock.

 

[NDG Elecs]

I think what Buzz is getting at is the general way the public can often behave. We don't expect to get a pizza delivered or get a taxi somewhere and then say we will pay you in ten days time..
Unfortunately more and more people are becoming like this. It may be partly due to them being busy and just not getting round to it yet, but often I feel that people generally are too self-absorbed and it's all about them. And anyway, why should they pay you this week, they have to buy some rubbish off the internet and spend time finding themselves first. Commercial work is a little different quite often, but I have had jobs where they can get a cheque counter-signed within 24hrs when a deposit is required and they want the work to start ASAP, but then have to wait three months or more for the final counter-signed cheque to arrive. Poor prioritising IMO.

 

[Squid]

The terms are stipulated in the contact agreed by both parties, a friend has a building company and he works on a 14 day term.

Just don't do any work for the NHS 90 day terms.........

 

[Midwest]

My cars in for MOT Friday. Think I'll tell em, I'll pay at the end of the month. Can I have my keys please.

 

[Harry_P]

I'm sick and tried of sending invoices to customer saying pay within the seven days and some customers try and pay late .I run a business not a charity, I now you have to give them 30days to pay in the invoice ,but stuff that ,we have all been their waiting for payment .I now send them pay now or face the wrath of buzz.

Simple solution.
1 Make it clear that invoices are payable upon receipt of the electrical certificate
2 Give the client the certificate (which you have forgotten to sign)
3 when they pay you then you can 'remember " to sign the document.
Everyone is happy

 

[Octopus]

Business paying at the end of the week is comon place,
Even paying at the end of the month is common
especially with larger corperate style business.
They seem to expect you to know this.
The best way around all this,
is to sort it out in the beginning,
so both sides know and agree.
If you just expect them to understand,
you could be in for a shock.

I see you state Australia as your location and it sounds like Australia has a better attitude towards paying its suppliers.

In the UK, some companies have awful reputations for delaying payment and you either chose not to deal with them or accept their terms.

Which is why I always suggest to people who ask about becoming self employed :

"and make sure you have plenty of cash in your business account so you can pay your suppliers when your customers don't pay you"

 

[richy3333]

Theres no such thing as standard payment terms/dates in the UK. For domestics and commercial agree what you want. Every customer of mine gets a copy of my terms and the payment period is 14 days. Saying that I have some customers - business and domestic that often pay before I've done the job!
With business to business in the absence of any other terms The Late Payment of Commercial Debts Regs assumes 30 days. Under these rules you are entitled to interest and additional costs for chasing debts.

 

[MG201]

The one thing that is in your hands is the certification, just state in your T&Cs that certification will be released upon full payment , also state that there is late payment charges of £x amount added to account , attach ur t&cs with every invoice , if ur working for a company your t&cs will apply if they haven’t supplied u with theirs , even if they say we pay in 60 days that is irrelevant as yours are the ones that apply in a court

 

[Toneyz]

If you have not issued the electrical certificate to the person ordering the work you have not complied with BS7671 so why should they make full payment to you. You have not fulfilled the contract by not issuing.

 

[MG201]

If you have not issued the electrical certificate to the person ordering the work you have not complied with BS7671 so why should they make full payment to you. You have not fulfilled the contract by not issuing.

In what way have you not compiled

 

[Toneyz]

In what way have you not compiled

Not issuing the electrical certificate and I think the schemes take a dim view of this if they complain.

 

[MG201]

I’m not sure but as long as it is completed and issued as soon as payment is made there should be no issue

 

[Santa]

The company I worked for in Birmingham paid at the end of the month following the month the job was done. In the worst case, a job done on Jan 2, would not be paid for until early March. This was clearly stated on the order and no job would be paid for without an order.

Privately, I tend to pay quickly. For small jobs; on completion, but for more expensive work, I like to hold back at least a part, to make sure that nothing blows up/falls off as soon as the tradesman leaves. I work on the principle that I might well want them again and if they know I am a 'good' payer, I might get some benefit.

Discounts for prompt payment are a very good incentive.

 

[Jjc]

You are too up tight about this

I chase after 30 days .... Rarely before

That said the vast majority of my clients pay within 7 days

Building up a cash balance in my business account allows me to take this can you

 

[Jjc]

Good luck with that approach .... sounds like it doesn’t work

7 days for payment is a bit quick imho .... unless it’s after the 24th of the month

Can you walk out of a shop without paying for the goods and say I'll pay you within 28 days? Of course not ,so what's the difference you should be paid asap.

 

[chrisdungan]

How many sparkies on this site use one of the many mobile card payment devices we have down under??
I'm a Kiwi I rent a mobile card machine (Payclip) from my bank (BNZ) for $30/ month plus VAT that does chip and pin/swipe and contactless card payments. the Payclip bluetooths to a phone app and the payment goes direct into a seperate card account. Credit card payments cost me 1.75% , the other card payments cost me nothing. Longest time for the banks to transfer the money has been 36 hours.
Usually use it for those small domestic jobs where you're there for 2/3 hours with minimal materials. I write a manual invoice on the spot and say " just gimme ya card" Well I actually ask nicer than that but you get the picture.

 

[Harry_P]

I’m not sure but as long as it is completed and issued as soon as payment is made there should be no issue

You have no right to hold onto the electrical certificate and at the same time demand payment, If you are holding the certificate then there is no reason anyone should pay you anything because the job isn't finished until you give them the certificate. If you withheld a certificate and tried to sue someone for non payment you would be laughed out of court

 

[Darkwood]

Can you walk out of a shop without paying for the goods and say I'll pay you within 28 days? Of course not ,so what's the difference you should be paid asap.

The difference is important and no a contractual standard agreement for services done is 28 days or 1 month unless otherwise agreed, to try relate this to buying a sandwich at gregs or a tv at comet is a poor analogy, if you buy any product from any store then legally you can take it back within a given time period and ask for your money back for varoius reasons, the same applies to contractual work, once completed they have a settle in period that allows them to contend the work before payment, if you are financially struggling then don't blame the customer, blame the economy or your business model.

 

[Midwest]

You have no right to hold onto the electrical certificate and at the same time demand payment, If you are holding the certificate then there is no reason anyone should pay you anything because the job isn't finished until you give them the certificate. If you withheld a certificate and tried to sue someone for non payment you would be laughed out of court

I thought BS7671 was kinda worded in that way, but can't find that wording at the mo. I always issued my certificates before payment.

Going back to my car analogy, MOT's are now stored electronically, and you don't get the old embossed certificate. So even though you've not paid before picking up the car, the certificate is completed. However, you've no access to that certificate until you've paid, and then get a paper copy.

I guess it would be difficult to hold onto an EICR, as the customer would need to see, as thats your 'work', other than actual work done and EIC etc issued.

I know of a few sparks that hold onto the certificate until payment is completed, especially where builders are involved.

 

[Harry_P]

I thought BS7671 was kinda worded in that way, but can't find that wording at the mo. I always issued my certificates before payment.

Going back to my car analogy, MOT's are now stored electronically, and you don't get the old embossed certificate. So even though you've not paid before picking up the car, the certificate is completed. However, you've no access to that certificate until you've paid, and then get a paper copy.

I guess it would be difficult to hold onto an EICR, as the customer would need to see, as thats your 'work', other than actual work done and EIC etc issued.

I know of a few sparks that hold onto the certificate until payment is completed, especially where builders are involved.[/

I thought BS7671 was kinda worded in that way, but can't find that wording at the mo. I always issued my certificates before payment.

Going back to my car analogy, MOT's are now stored electronically, and you don't get the old embossed certificate. So even though you've not paid before picking up the car, the certificate is completed. However, you've no access to that certificate until you've paid, and then get a paper copy.

I guess it would be difficult to hold onto an EICR, as the customer would need to see, as thats your 'work', other than actual work done and EIC etc issued.

I know of a few sparks that hold onto the certificate until payment is completed, especially where builders are involved.

If it eventually went to court it would go something like this....

Judge: why haven't you paid Mr sparky for the work he did?

Client: because I haven't received an electrical certificate

Judge to Mr sparky: why are you expecting payment for something that you haven't yet provided? (Certificate)

Mr sparky: errrrrrrrrmmmmmmmmmm

Judge: case closed and Mr sparky can pay the costs of this court case and the costs of the client

 

[Midwest]

What?

 

[rapparee]

We pay 30 days after month end.

And if we pay later than that, sure what the hell.... do you want the work or not. You can be easily replaced.

 

[Bellendian]

Can you walk out of a shop without paying for the goods and say I'll pay you within 28 days? Of course not ,so what's the difference you should be paid asap.

I do this every day! As I imagine pretty much everybody here with a credit account does!

 

[Toneyz]

We pay 30 days after month end.

And if we pay later than that, sure what the hell.... do you want the work or not. You can be easily replaced.

Does that mean that when you do work and the company doesn't pay you at 30 days you take the same attitude?

 

[MG201]

There are lots of credit schemes now that are trying improve payments , a good incentive to the tier 1,2,3 contractors to pay earlier is that they get the Benefits of better prices the contractors who pay late get a % added to all quotes to aid the delay in payments

 

[rapparee]

Does that mean that when you do work and the company doesn't pay you at 30 days you take the same attitude?

I am an employee I get paid weekly. I lost £500 in total deductions this week.

Guys who are self employed need to get it into their heads that they are not working for wages. They are charging big money, and paying lesser tax, so they have to play by big boys rules.

I've no sympathy. If you aren't able to manage your finances to take the rough with the smooth, maybe you should go and work for someone else and be a direct employee

 

[baldelectrician]

Almost all my work is domestic
I offer pay by link via email as well as a card machine in the van.

I do not usually get lat paying customers- I have had one in the past 2 years.
I sent him the invoice, week later the reminder (7 day notice) and he paid 4 days later- all in 2-3 weeks from invoice to payment

I have my laptop on site with me (as I use it to do my certs while there), this means I can use a spread sheet to total the job up and the client pays there and then.
My card machine has a roaming sim which jumps between T-Mobile, O2 and Vodafone so I usually have no problems taking payments.

 

[rapparee]

Almost all my work is domestic
I offer pay by link via email as well as a card machine in the van.

I do not usually get lat paying customers- I have had one in the past 2 years.
I sent him the invoice, week later the reminder (7 day notice) and he paid 4 days later- all in 2-3 weeks from invoice to payment

I have my laptop on site with me (as I use it to do my certs while there), this means I can use a spread sheet to total the job up and the client pays there and then.
My card machine has a roaming sim which jumps between T-Mobile, O2 and Vodafone so I usually have no problems taking payments.

Would you really classify 3 weeks as a late payment.

How often do members on here pay their wholesalers.

 

[GMES]

Would you really classify 3 weeks as a late payment.

How often do members on here pay their wholesalers.

Good point, all my wholesalers are 60 days from end of month, so potentially 90 days in some cases.

 

[baldelectrician]

Would you really classify 3 weeks as a late payment.

Yep
My terms state payment on completion of electrical works (that way they cant wait until other trades have finished before paying me)

They accept the terms prior to the work starting- I am really ---- about this on works over £100- especially with landlords.