chasing late invoices

[Spazz]

Out of interest what way has everyone found is the best way to chance late invoices?

I have tried phoning them, sending letters, sending emails, texting and I always get a not so good reply from the customer which results in them not using me anymore.
These invoices I usually chance are between 2 weeks and 2 months late.

Any ideas would be great, also for those using letters can you attach the letter you use that you find gives the best result.


Thanks all in advance

 

[Rockingit]

The 'traditional' polite reminder is to send a statement. Or another good ruse is the little white lie of 'had a hiccup with our paperwork and not sure whether we sent you your invoice or not - here's a copy just in case'.

But it depends on the customer, your relationship with them and chances of future work. But in my experience, clients who don't acknowledge corresponence from you aren't worth the waiting on.

 

[RISElectrical]

A good tip to not appear like your badgering for payment and to be polite is send an "automated" email. That way it looks like the software is reminding them and not you

 

[Spazz]

I have one letting agent who uses me only when things go wrong, they dont put any pressure on EICRs, even though I do state it in the recommendations attached after any work I do on all properties (if not done in last 5 years).

I will try the statement route first and see what happens - I have been thinking about sending statements every 28th of month so they can see what they have had done and on what property. I dont mind waiting a few extra days with this customer but they do tend to lose invoices.
I will also add a line on the bottom saying if they need a copy of any invoice please let me know.


Thanks all

 

[Spazz]

A good tip to not appear like your badgering for payment and to be polite is send an "automated" email. That way it looks like the software is reminding them and not you

I do this but they dont like it

 

[Geordie Spark]

The 'traditional' polite reminder is to send a statement. Or another good ruse is the little white lie of 'had a hiccup with our paperwork and not sure whether we sent you your invoice or not - here's a copy just in case'.

But it depends on the customer, your relationship with them and chances of future work. But in my experience, clients who don't acknowledge corresponence from you aren't worth the waiting on.

My sentiments exactly !

 

[Geordie Spark]

I have one letting agent who uses me only when things go wrong, they dont put any pressure on EICRs, even though I do state it in the recommendations attached after any work I do on all properties (if not done in last 5 years).

I will try the statement route first and see what happens - I have been thinking about sending statements every 28th of month so they can see what they have had done and on what property. I dont mind waiting a few extra days with this customer but they do tend to lose invoices.
I will also add a line on the bottom saying if they need a copy of any invoice please let me know.


Thanks all

There comes a point where you need to ask yourself; "Am I a Spark or a Clerk?"

 

[RISElectrical]

Need to remember that your not in their debt because they gave you work, you did the work and deserve paying in a reasonable amount of time. 30 days from end of month is most I would go to and only for established customers.

You seem like you don't want to annoy the customer however they are breaching payment terms. If they booked you for a job and you forgot to turn up would they not want to call you so they didn't annoy you? I don't think so

 

[Spazz]

Thanks RIS you have a point there.

This one company has generated about 60% of my work since I started (in January) - hence why I dont want to **** them off.
They have told me that I will be doing a 3 bed new build they are starting to build next month, so a few £K profit on that.

This Agent told me that they only pay after they received their rent from tenant - fair enough.


My biggest problem is that in Pembrokeshire there is limited work (like I bet is the case everywhere) and there are over 30 electricians in this area.
Im different to most of these as I offer a 1 stop shop - basic plumbing, carpentry, electrical, gardening, cleaning (my partner anyway), etc.

If there is something that needs to be done then I will do it.

I put out 30 leaflets yesterday in local shops/pubs/etc so see if that brings in any work - already got 1 new build in Sept and a EICR on their shop and Flat (all from 1 customer), but nothing now till then.

My partner is doing 2 hours of cleaning every week and thats all she has - she claiming benefits for us, and we let them know when and how much I earn per week.

 

[Guest55]

I do this but they dont like it

So what if they dont like it ? i dont like working for free either.
If you worry about upsetting some office goon when you dont get paid youre gonna get walked all over.

 

[sedgy34]

you really should have a proceedure in place, Do ask politely as you are only asking to be paid for the work THEY instructed YOU to carry out!
if there are no issues with your work they should pay within your terms stated on your invoice,any other work they ask you to do explain to them you can only offer 14 days before being paid.

i seem to be the expert now having nobs owe money to me but thats another story.

 

[needasparks]

So what if they dont like it ? i dont like working for free either.
If you worry about upsetting some office goon when you dont get paid youre gonna get walked all over.

sounds like they already are. Agents are best handled at arms lenght, if work is as dry as he says in the area then bet your life the agents know it and are milking it. strange breed and IMO only slightly above car dealers.

 

[Spazz]

thank everyone - as said this agent only gives me work when something goes wrong.

The last job I had with them - I put a new ceiling rose up - easy but they had an old lady in there - it had BS3036 fuses in it, told them to get a RCD on it as there was a shower (not on RCD) - NOTHING TO DO WITH ME! and nowhere near I was working - saw it after I did the job.
The landlord said no! - 1 week later the CU caught fire - Shower was on for over 35mins then stopped - some prat put a 4mm cable instead of a fuse wire!
No damage lucky! a few burned cable ends, black fuse box (inside) etc.

After salvaging all the cables and extending them - new CU (with RCDs) an testing a simple job of £300 (EICR and RCD or CU change) - turned into over £650.

all could have been saved with just saying yes to £300 - would of picked up the cable in the fuse!


Same as another job they gave me - old man fell down the stairs because there was no switch at the bottom and he had to walk up and back down to turn the light on to see to go to the kitchen.
Again I told them 1 week before that is not safe as he sleeps downstairs as he cant walk up the stairs easy - few £K compo and the work for a new light switch downstairs instead of doing the job in the first place.

 

[Geordie Spark]

Nicholas.

In my early days of business, I met an Irishman in a pub who was a business advisor. He was brilliant & over the following couple of years I learned a lot from him.

One of the things I learned is that credit is not a right - it's a privilege. In other words, you don't HAVE to give them 30 days to pay - you can insist on payment upon completion, payment before the work commences, half payment up front & the balance on completion, or whatever terms YOU are comfortable with.

I was always very careful about Credit Control so much so that the most money I ever lost was just under £2k over an 11 year period. I later sold my business to one of my competitors who then managed to somehow lose an average of £4k per month until the whole thing went bust 18 months later !!!

I must have been doing something right over all those years !!

 

[Spazz]

Thanks Geordie Spark - I do credit checks on every business. No credit check or poor credit no credit applied! at most 5 days - good credit - Above Average only! the get 15 days, anything over Very good they get 30 days.

I credit checked a customer 99/100 (fantastic credit) and she moaned because I agreed to give her 30 days - she just expected me to give her when ever she wants to pay!

They canceled all work there and then and made endless problems for me since

 

[Geordie Spark]

Thanks Geordie Spark - I do credit checks on every business. No credit check or poor credit no credit applied! at most 5 days - good credit - Above Average only! the get 15 days, anything over Very good they get 30 days.

I credit checked a customer 99/100 (fantastic credit) and she moaned because I agreed to give her 30 days - she just expected me to give her when ever she wants to pay!

They canceled all work there and then and made endless problems for me since

Count your blessings bonny lad ....... that's the sort of customer you do NOT need !!