customer not willing to pay

[martom]

Hi everybody, I need some advice. I've done some rewiring work to a cafeteria, where I finished 10 days ago. After completion I send them an invoice - no reply. So after a week I send them few messages and an email asking about a date when they will pay. No replay. I send them another email asking for immediate payment. Received an answer that it's not professional to chase for a payment so quick, they need some reasonable time and that I'm a bully and they will report this to the police and trading standard agency so what should be my next step? A signed for letter asking to immediate payment?? Any advice welcome. Thanks. Tom

 

[High Tower]

What are your payment terms and were these communicated to the client?

 

[Darkwood]

When you take on a job its polite to verbally express your terms of payment and when your invoice is sent it good to have it printed at the bottom, mine give 28days from date of invoice.... i have regular customers who pay me on 12weeks terms and you will find this more so with bigger companies who settle on 8 and 12 weeks, yes your methods are a tad strong, i would go and see them and offer an apology and express your new to running a company and have taken their comments on board then politely ask what would be a reasonable payment term? .... this way you ease any pressure and if lucky retain the customer for future work.... word of mouth can make or break a business and giving time to pay isn't an unreasonable request and as i said the norm is 28days.

I suggest if waiting for payment may cause you cash flow issues then i would suggest you discuss before hand with the customer that due to been new to self employment and building up the business you would appreciate early settlement of the bill... you should find most will be happy to those that dont then you need to see if the job can be one without putting you in cashflow issues..... another trick is give a 5% discount if early payment is met but obviously price that in without losing to the competition ...at the wiff of paying less many will give instant payment.

Remember you provide a service and usually after 3-4 weeks time has passed to assess whether your work is good or any issues arise like faulty fittings etc..

 

[Farmelectrics]

face to face is best dont work for them in future

 

[SJD]

I'd agree with darkwood, I usually allow 28 days. My domestic customers usually pay much sooner, but I think business customers are used to having much longer to pay, and unless you had alreday agreed something different, are probably surprised to be chased before 28 days are up.

 

[wade88]

Unless terms of payment were agreed, or laid out in writing via contract or on your invoices, technically the customer is at their own liberty to pay when it suits them.

Ensure you have clear and concise terms of payment, or you WILL get taken for a ride. Guaranteed

 

[Octopus]

Commercial clients pay between 30 and 60 days - you need to factor this into your cashflow.

Yes your quote may have said immediate payment but my guess is that they ignored it.

 

[kingeri]

100% agree with darkwood. If I haven't received payment, I don't hassle a customer. I give it a couple of weeks, then ring them and check that everything is ok with the install. After a month, I send my standard email or letter just giving a gentle nudge. I have honestly never had a customer not pay, but I do generally do domestic and most of that is word of mouth. I also make myself so well liked by the customer that they couldn't possibly mess me about!

 

[glasgospark]

face to face is best dont work for them in future

worst advice ever

there obviously not trying to burn you , they had some extensive work done and didnt think you would be chasing for money within 7 days , there correct by saying not very professional to be chasing money after 7 days , if you wanted paid fast you should have requested cash/cheque on completion and let them know this at start of job , by the sounds of it if you did you probably wouldnt have got the job , wait it out get your money and be amicable because its only you to blame for the late payment as you didnt state payment terms , they legally have 90days

 

[martom]

thanks everybody, Ill write them a apology. I didn't realised that in commercial environment there is such a long term. So Ill do it straight.
I'm not for a long time self employed and used to this that my domestic customers paid me straight. Actually I leave with them 10% for 14 days after completion - but actually they never kept those 10% so my habits are inappropriate
Thanks for advice
Tom

 

[Darkwood]

worst advice ever

there obviously not trying to burn you , they had some extensive work done and didnt think you would be chasing for money within 7 days , there correct by saying not very professional to be chasing money after 7 days , if you wanted paid fast you should have requested cash/cheque on completion and let them know this at start of job , by the sounds of it if you did you probably wouldnt have got the job , wait it out get your money and be amicable because its only you to blame for the late payment as you didnt state payment terms , they legally have 90days

As the OP is a sparks entering new to commercial a face to face with customer discussing an early payment give a x% discount is a subtle way to help win a customer as well as hopefully get early payment, although asking dirent for insant payment i will agree will lose custom, its all about customer relations and if your good at it you can get blood out of a stone when your bad at it then your business suffers.... when established in commercial or industrial then its good not to do the verbal but say have a 30days term on invoice then follow with polite letter 14days after but i would ring first and enquire about their own payment terms so you can update your customer accounts with the info.... this is also a good way to know at the beginning of a job is to politely ask their terms rather than give them yours so you can enter the details into your SAGE accounting software.....

 

[glasgospark]

As the OP is a sparks entering new to commercial a face to face with customer discussing an early payment give a x% discount is a subtle way to help win a customer as well as hopefully get early payment, although asking dirent for insant payment i will agree will lose custom, its all about customer relations and if your good at it you can get blood out of a stone when your bad at it then your business suffers.... when established in commercial or industrial then its good not to do the verbal but say have a 30days term on invoice then follow with polite letter 14days after but i would ring first and enquire about their own payment terms so you can update your customer accounts with the info.... this is also a good way to know at the beginning of a job is to politely ask their terms rather than give them yours so you can enter the details into your SAGE accounting software.....

i was reffering to the (dont do business with them again part)

 

[UNG]

I wonder what payment terms they have on their food I bet you can't get 30 days to pay for that when you order it

 

[Hiddo]

In future make it clear what you expect. I do it with all my commercial clients and some of the bigger landlords. Just explain that you want payment within x days and see what they say. If they can't commit it's up to you to decide if your cash flow will stand the wait. If not dont take the job on.

 

[martom]

Thanks a again for explaining to commercial environment hope I didn't mess up to much my relationship with them .... At least they are really happy with the work....