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

 

[Geordie Spark]

My terms are printed on my invoice , but IMO you are entitled to your money on completion of the work, when you buy a steak in tesco you pay straight away, why do these people think it should be any different, it's a good idea to agree terms before, the Police would not be interested and your doing nothing wrong, it's your money that you are owed

You're absolutely right - apart from the Tesco steak maybe ........

 

[Geordie Spark]

You have to be realistic. I have commercial customers, the worst by far is Welsh Water, who pay on 90 days. I factor this into quotes for work accordingly. Some pay up to 10% extra for this "service" although they are of course unaware of this. I don`t mind one bit as where else can you get up to 40% pa return on your money legally.

Most commercial customers have book keeping systems in place where invoices are paid at a set time after receipt. Often at the end of the month or at the end of the month following receipt. Very few pay on the nail.

I don`t pay my suppliers when I walk into the wholesalers and get some gear. I get an invoice at the end of the month which is paid at the end of the following month. Therefore goods and services I may have recieved on 1st February may not be paid for until the end of March ( 30 days after invoice)

I quite agree with the client in this case, it is unprofessional to badger them for payment earlier than this UNLESS you have an agreement to be paid on completion of the work.

And that's the trick ...... get it nailed-down tight and IN WRITING so everybody knows what the agreement is before you start the job.

Initially, it may take a bit of time typing/writing and faffing about with bits of paper, but when it all goes pear shaped you'll be glad you spent that bit of time because it will save you a lot of time and money.

 

[TaffyDuck]

You can`t compare buying a horse burger with doing work. You are buying a product. This is the way the world works, get used to it.

If you are employed you dont expect to turn up on day one and get paid do you, no. You expect to get paid at the end of the month so anything up to 30 days later and any overtime is likely to be another 30 days after that.

Try badgering your boss after a couple of days and see how far it gets you.

 

[Hiddo]

You can`t compare buying a horse burger with doing work. You are buying a product. This is the way the world works, get used to it.

If you are employed you dont expect to turn up on day one and get paid do you, no. You expect to get paid at the end of the month so anything up to 30 days later and any overtime is likely to be another 30 days after that.

Try badgering your boss after a couple of days and see how far it gets you.

Equally, you can't compare a PAYE with a lad running his own enterprise.

 

[saveloy]

What beats me is why any customer needs 30/60/90 days to pay an invoice. Just pay up FFS.

 

[Octopus]

I've got a client (not what I'd like to call him) who owes me £62.50 from Feb '12 - despite maiing him, and calling round not luck getting paid.

A couple of weeks back I called round and his son was there and he gave me his mobile number..... so I've texted him 3 times ad now have his email too... so I've sent copies of the communications to the son (who's in his 30's).... and the "son" has acknowledged the documents and has asked "Thank you so much for this info, pls allow me a few weeks to get to the bottom of this, we are going through some family problems at this stage."

Hum.......

 

[Geordie Spark]

I've got a client (not what I'd like to call him) who owes me £62.50 from Feb '12 - despite maiing him, and calling round not luck getting paid.

A couple of weeks back I called round and his son was there and he gave me his mobile number..... so I've texted him 3 times ad now have his email too... so I've sent copies of the communications to the son (who's in his 30's).... and the "son" has acknowledged the documents and has asked "Thank you so much for this info, pls allow me a few weeks to get to the bottom of this, we are going through some family problems at this stage."

Hum.......

How much are car tyres these days ......... he does have a car doesn't he???

Battery acid does a nice job of cleaning all the grime from a car's paintwork too.

 

[ian.settle1]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

 

[Silly Sausage]

How much are car tyres these days ......... he does have a car doesn't he???

Battery acid does a nice job of cleaning all the grime from a car's paintwork too.

I'm liking your thinking here but something more subtle for these Southerners I think!

 

[Geordie Spark]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

Well it was an interesting theory, but if they won't pay the principle amount, how much chance is there of them paying the interest??

- - - Updated - - -

I'm liking your thinking here but something more subtle for these Southerners I think!

I'm a Geordie bonny lad .............. we don't do subtle !!!!

http://www.youtube.com/results?sear....0.0.0.99.231.3.3.0...0.0...1ac.1.5tuh_SJi4Ok

 

[Octopus]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

When I do work for their "brothers" I add a supplementary charge so I'm recouping the loss over time. Personally don't like the scum - so once the money is paid directly or by their brothers future calls for work will be declined.

 

[Knobhead]

What beats me is why any customer needs 30/60/90 days to pay an invoice. Just pay up FFS.

It's called accountancy. Why pay out when you can use the money for something else.
It's why you want a trade account at a wholesalers.

When I was in engineering planning / purchase I expected 30 day from the preceding 28th of the month. If I spent £5000 on the 29th our terms of purchase meant the money was in the company accout for near two months earning interest. Unless we had to nothing would be bought after the 15th.

 

[LlandrilloSpark]

All tesco meat is about 99% water anyway !!

 

[dan86]

All tesco meat is about 99% water anyway !!

is the other 1% horse?

 

[MDJ]

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

A toughy, but welcome to the commercial industrial world, IME 28 days is the norm, usually when you finish a job you tend to phone the customer after a few days to see if he or she is happy with the works, if they are you then send an invoice with your 28 days terms, I usually wait 30-40 days TBH, the problem with customers at this level is they won't want to know you if you insist on payment earlier, rightly or wrongly quick payments at this level can finish a companies customer base, ringing them and chasing for payment after a couple of days can be amateurish In their eyes, cash flow is the difference betwewen success and failure, I do feel for you, and hope you get paid soon, however next time at this level you need to expect to wait longer, JMO.


Mike