Getting payment out of companies for work done

[Diydebs]

so he's not a limited company then.....

Ok ok lol.. im new but I'll get me own back when settled, get ready ,

 

[Midwest]

Ok ok lol.. im new but I'll get me own back when settled, get ready ,

Don't worry Diydebs, it happens to us all. Just click the button once & close the page. Does make for amusement though

 

[Spoon]

Ok ok lol.. im new but I'll get me own back when settled, get ready ,

Look forward to it mate. It's good to have a laugh with people on here.

 

[Risteard]

Late Payment of Commercial Debts legislation applies where the client is a business (regardless whether sole-trader, incorporated or partnership) and not a private individual.

 

[Octopus]

Unfortunately companies pay when they want to, rather than when you want to.

Is there any pattern to the late payments, ie 30, 45, or 60 days

I'll try this question again...............

Unfortunately some companies pay when they want, not when you want .............. if this is the case you either need to build up bigger cash "reserves" in the business account or find prompter payers ............

If he's expecting payment within 7 days, he's barking up the wrong tree IMHO

 

[Deleted member 105166]

Companies that pay outside terms generally fall into three camps.

Camp #1 - those that you give say 28 or 35 days account facility, but because they do a single month end accounts payable run, some invoices "just miss" last month's run and are therefore are circa three weeks overdue by the time they're paid. Normally best to accept this, if they are a regular customer and their month end run happens automatically like clockwork, they represent a very low risk of bad debt.

Camp #2 - those that want ridiculous terms, eg: 90 or 120 days from month end, or simply have no intention of paying until they've been chased multiple times and threatened with legal action. Ensure your T&Cs are tight, if they are a one-off, charge them any overdue penalty/interest as per your T&Cs, or if they are a regular customer, increase your pricing by 20% and offer them a 5% settlement discount, should they opt to pay within x days. As a last resort, to avoid issuing a court summons, a full email history & copy invoice/T&Cs sent to a few senior people (group finance director, UK managing director, etc) found using Linkedin often yields results.

Camp #3 - generally multi site / larger businesses - where you need a purchase order number to get paid, although the person placing the order omitted to tell you this at the time of ordering and you find out once the invoice is well overdue. However if you're patient, you may be able to turn this situation to your advantage, by filling out the long winded supplier application form and becoming an "approved supplier", subsequently receiving more work from other business units as you're now "on the list". This customer then moves from Camp #3 to Camp #1

 

[rolyberkin]

This is a really easy one, but you must be mindful of being really nice and to treat people like they have forgotten, a card machine where you can take payments over the phone is a must!
1. Make clear at estimate or invoice stage what your terms of engagement are, if it is net 30 then don't expect payment before 30 days.
2. On 30 days call the person/company who owes the money with your card machine in your hand, enquire (nicely!) whether they have overlooked the payment? Tell them you have your card machine and can take the payment there and then over the phone, if they fail to pay, inform them that you have extended the company terms by a further seven days to pay but unfortunately it is your policy after this date to pass the debt to an enforcement agency and they will then be responsible for any costs incurred. (Most will pay by card there and then or will phone you back fairly quickly or you will get payment by BACS within seven days).
3. If they have not paid by the date set for payment then hand the debt to a debt collection agency. Business Debt Collection & Recovery Solicitors | Thomas Higgins Limited - https://www.thomashiggins.com/ costs £3 for a letter and the website explains the rest.
My wife used to chase late payments for a surgeon and the card machine "To assist you we can take payment over the phone sir/madam" works 99% of the time!

 

[Diydebs]

I'll try this question again...............

Unfortunately some companies pay when they want, not when you want .............. if this is the case you either need to build up bigger cash "reserves" in the business account or find prompter payers ............

If he's expecting payment within 7 days, he's barking up the wrong tree IMHO

 

[Diydebs]

Apologies re late reply. It's all different some a month, some longer. So is a month a reasonable time to wait ?

 

[Diydebs]

Look forward to it mate. It's good to have a laugh with people on here.

I'm not used to the format but I'll get there. I'm more of a Facebook user

Look forward to it mate. It's good to have a laugh with people on here.

 

[Diydebs]

That's super thanks... his problem is he's too nice for business but he'll get there... I'm busy getting him some terms and conditions to get now rather than ding it all verbally with them holding all the aces

 

[Octopus]

Apologies re late reply. It's all different some a month, some longer. So is a month a reasonable time to wait ?

Yes. Very typical for commercial businesses to pay you.

 

[Risteard]

In the absence of agreed terms the law defaults to 30 days.

 

[rapparee]

We make people wait 30 days from the month end.

There is a payment run once a month and it is set in stone.

Companies that pay outside terms generally fall into three camps.

Camp #1 - those that you give say 28 or 35 days account facility, but because they do a single month end accounts payable run, some invoices "just miss" last month's run and are therefore are circa three weeks overdue by the time they're paid. Normally best to accept this, if they are a regular customer and their month end run happens automatically like clockwork, they represent a very low risk of bad debt.

Camp #2 - those that want ridiculous terms, eg: 90 or 120 days from month end, or simply have no intention of paying until they've been chased multiple times and threatened with legal action. Ensure your T&Cs are tight, if they are a one-off, charge them any overdue penalty/interest as per your T&Cs, or if they are a regular customer, increase your pricing by 20% and offer them a 5% settlement discount, should they opt to pay within x days. As a last resort, to avoid issuing a court summons, a full email history & copy invoice/T&Cs sent to a few senior people (group finance director, UK managing director, etc) found using Linkedin often yields results.

Camp #3 - generally multi site / larger businesses - where you need a purchase order number to get paid, although the person placing the order omitted to tell you this at the time of ordering and you find out once the invoice is well overdue. However if you're patient, you may be able to turn this situation to your advantage, by filling out the long winded supplier application form and becoming an "approved supplier", subsequently receiving more work from other business units as you're now "on the list". This customer then moves from Camp #3 to Camp #1

Have you dealt with us in the past?

We make people wait 30 days from the month end.

There is a payment run once a month and it is set in stone.

We also have approved suppliers who sometimes go out of their way and get me non stock items with their obvious mark ups, because I am restricted to just a few suppliers.

 

[JK-Electrical]

I do the books for an electrician. He has four or five lads that are subbies. However he struggles getting paid by companies... constantly, but he needs the work. How do you get them to pay on time ?

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