Customer Payment.

[highspark]

Having problems receiving money from a client. They are either ignorant, arrogant or both. I put my invoice in a week last Friday.

We are small business and rely on fast payments to cover wages costs and material costs. However I have still not received any form of payment. This was a private installation not a business to business.

Not sure what the next move is. I know they get 30days to pay up but I feel as though they are the holding money back for no reason. It's £4000, so hardly something we can let go.

 

[Octopus]

There is no such law which allows 30 days to pay no matter what, it doesn't exist. Any and all transactions are covered by contract law. Instead of listening to all the barrack room lawyers spouting nonsense, either read up on it or ask a solicitor.

As for how to run a business, if the above are examples no wonder so many small businesses go bust. Still, each to their own. You run your businesses how you want, I'll carry on getting paid on time.

That's got probably more to do with not understanding cash flow, bad or late payers and not having enough in the bank.

I keep about 1 months profit in the bank as my "float" and never waste time chasing for money as I can always pay my bills on time

 

[vxwestie]

And small businesses go bust because people get greedy, lose work and custom or let the paperwork lack. Let's face it, if you're on top of the paperwork, keep the work and bills following there will always be a flow of income, whether people take 30 days or less.
Its a harsh fact of life , you need capital to run a business and have to be hard when it's called for, but no1 priority must be keeping the work coming in and customers happy.

 

[SJD]

I agree with Murdoch, lack of consideration of cash flow is a prime reason businesses go bust.

I mostly do domestic work, and most people pay either before I leave, or soon after I email an invoice. But there are always a few that use all sorts of excuses to avoid paying on time, like said they had not received emailed invoice, said they did not have my bank details, etc. I usually allow 1 month before chasing, but in the case of very large jobs (like £4k), I'll likely have some staged payment agreed.

 

[imago]

but no1 priority must be keeping the work coming in and customers happy.

Number 1 priority is keeping the money coming in, that's why I'm in business. Keeping the work coming in is what supports that number 1 priority. I don't provide credit if people want credit or longer periods in which to pay they can take out a loan or use a credit card.

I don't have cash flow problems, and on principle I don't allow other peoples cash flow problems or reluctance to be passed on to me.

I've turned down some quite large jobs for companies because their payment records with other contractors has been poor, or their company records ring alarm bells. It's easy to be a busy, but I could do that with hobbies. I run a business, which means that I do work and I get paid for it. No BS, no sob stories, no delays.

Other people may choose to work differently, and that's fine because it's their choice. Making up facts, laws and accepted norms to back up their choices aren't on IMHO.

 

[R G]

My way of settling the balance ASAP usually whilst on site , works for me , as a small one man Ltd company , most of my customers are made aware of this before hand ,and usually are recommended , but I do feel that if I was to become larger and more successful It would not be the right thing to do , but you still need to keep a good size working capital though , thats IMHO anyway,,

 

[highspark]

Think they have 30 days in law to pay the bill (then you can charge interest) even if your T & C say payment within 7days, if you go chasing before the 30 days threatening a debt collector you could end up on the receiving end of a court case for harassment or something.

As has been said if you are after the money to pay your men after 7 days you don't seem business savvy,

Also remember that if the word gets round that you chase people for money after such a short time people may think you are in financial trouble and you may go bust and the work you are doing for them may not get finished, thus if this happens you will go bust as you will not get any work.

All bills are covered including wages. However I'm owed £4000 how many small business's can say they have four grand sitting in their accounts to cover late payments?

It's not the fact I need the money... It's the fact I'm being ignored and told we'll pay etc. the terms were clearly written on quotation and invoice. This isn't about cash flow it's about whether I'm going to receive payment at all.

 

[telectrix]

one of my best customers is a pub. as soon as the job's done it's 2 questions from the landlord:

1. how much do i owe you?

2. pint?

 

[marcusone]

As Tommy Cooper once said "it's not about the principal, it's about the money"

 

[Geordie Spark]

As Tommy Cooper once said "it's not about the principal, it's about the money"

and with the salary that a principal is on he won't be worrying about money.

 

[sparkymalarky]

yeah, principals and even vice-principals make great money!

 

[telectrix]

but most is spent on their vice girls.

 

[NickD]

yeah, principals and even vice-principals make great money!

As long as they're discrete about it....

 

[Alex Ramage]

Up front credit management guys.
Get a simple set of T's&C's pulled together outlining payment terms and consequences thereof for delayed payment and have that as part of your quote acceptance that your punter signs them - even if you know them previously. ALWAYS agree payment dates and valuation dates if your on a longer job.
Also………….. a firm handshake and eye contact usually give you a feel for their integrity. If the receptors twitch, try not to over expose yourself before you apply for a payment.

You'll still have sleepless nights but far fewer
:chillpill:

 

[Guest111]

You say they are "a genuine couple" how do you know? most of the people who scam are thought of as "genuine" that's how they get away with it.The only way to avoid a repeat situation in future is to clearly set out your terms of payment beforehand.A sneaky trick could be to add say 50 quid to the bill and then say you'll knock 50 quid off if payment is made within x number of days,sneaky yes but plenty do it.

 

[ian.settle1]

You say they are "a genuine couple" how do you know? most of the people who scam are thought of as "genuine" that's how they get away with it.The only way to avoid a repeat situation in future is to clearly set out your terms of payment beforehand.A sneaky trick could be to add say 50 quid to the bill and then say you'll knock 50 quid off if payment is made within x number of days,sneaky yes but plenty do it.

Heard a good one similar to that once the bloke turned round and said that it was £240 but let's call it £200 for cash, the woman replied no we won't it will be £240 and we will be round to your office tomorrow to go over your accounts, turned out she worked for HMRC.