late payments

[pcam1984]

Why do customers think it's ok to ignore the due date on invoices? The last month or two has been a nightmare. Chasing up payment and get BACS that takes an extra 3 days or cheque that takes 4 days. I'm going to start going in to asda take my shopping and tell them I'll pay it in a couple of days, I wonder how that would go down.

 

[Darkwood]

Its part of the parcel unfortunately, send them a statement 3 days before due date, that usually gets some of them, the others are just a matter of getting on the blowers, I,m in a good position to barter as most need me to tend to break downs more than I need them s customers

 

[NDG Elecs]

Yeah can be a PITA sometimes mate. I have never fully understood why trades folk are often mixed up with credit agencies. I too am generally lucky with my clients, have some great ones at the moment whom I email the invoice and generally the money is transferred the same day. But had a couple of nightmare ones a couple of years back totalling approx £6000, and both were at the very same time. Lost a stone in weight due to the stress of it all, but it came good in the end and I can eat pies to my hearts content again! Chin up pcam

 

[Octopus]

Commercial or Domestic customers?

 

[GMES]

Commercial or Domestic customers?

From owls comment about same day his must be Domestic, My best payers are 30 days and the worst 60-90 days but they pay on the date that they promise, that is the only thing I would find appealing about Domestic work, Knowing you get paid when the job is complete.
Also In my world not only are the payments dragged out but also scary amounts sometimes.

 

[Octopus]

From owls comment about same day his must be Domestic, My best payers are 30 days and the worst 60-90 days but they pay on the date that they promise, that is the only thing I would find appealing about Domestic work, Knowing you get paid when the job is complete.
Also In my world not only are the payments dragged out but also scary amounts sometimes.

My question was aimed a the OP!

Bottom line is you can state any "due date" but rarely do many people actually take note of them.

you need to build up a cash reserve in your business account so you can have a working balance available - I keep about 1 months profit in mine and have never yet had any sleepless nights about not being able to pay my suppliers or myself at the end of the month.

 

[Leesparkykent]

I would never agree to 90 day payment terms. Most of my commercial customers pay straight away or interim payments on bigger jobs.

 

[Dave OCD]

I find that it's the well off customers who are the slower payers, working class people generally pay up instantly, some even try to pay me in advance !

 

[Octopus]

In Germany ALL businesses pay on 30 days....... the UK Governments of the last 30 years + have done NOTHING to sort this out!

 

[pcam1984]

Mixture of both domestic and commercial. The majority of my customers are great payers, just seems to be quite a rise in slow payers in the past month or so.

Dave you are spot on, the wealthier the customer the slower the payment. I can do a job on a council estate and the cash is sitting on the table.

 

[amlu]

when they call you with last minute asap call-out do not be in rush to go in there fast.

 

[baldelectrician]

When dealing with payments I charge out at my standard rate (£80 per hour) and apply a 50% prompt paymnet discount.
I don't have to do this with regular clients but I always do with the better off ones (they both end up with the same final bill but the slow payers are more motivated)

Got the idea from a parking ticket, so it must be legal

 

[PEG]

I would never agree to 90 day payment terms. Most of my commercial customers pay straight away or interim payments on bigger jobs.

I would agree that settling for 60/90 even 120 days of credit,before any argument begins,can be a mistake.

You agree to terms at the beginning,and then live in hope that all parties stick to it.

As for "having" to agree to extended credit terms,due to a companies "policy",i have found this,over a lot of years,to be rubbish.

Companies fail,if they are not able to make prompt,flexible alterations to their business operations. Payment arrangements are NOT statutory,or obligatory.

I have done plenty of work,over the years,for companies who state payment in the time scales above...and been paid on completion of the job,with no issues. This has been,on occasion,for some very prominent companies.

Some have even told me on the first occasion,that it is a "one-off"...and then continued with the same arrangement for the next 15 years!

Having a rolling agreement with a large customer,with whom you have a good,long-standing relationship,can work fine.

Agreeing to 90 days payment,with a new one,can sometimes lead to a great many eggs,in a shaky basket,and the fear of using the word "no".


Saying yes or no to a customer,can be the making or the sinking,of a business,and it is hard to explain this notion,to a keen newcomer,that after all the expense and advertising,turning some work away,can save you more money,than taking it all on.