Xero Late Payment Research

[Nigel]

On Sky News now Xero are suggesting that recent research they have carried out is stating that three quarters of small business are owed money outside of their payment terms.

Well I definitely fall into that 100%.

It would be nice for a government to bring in legislation of some kind to stop this practice of large companies using small businesses as bank loans.

 

[Deleted member 26818]

It’s only been going for forever.
Can just see the Tories bringing in legislation to make businesses pay up on time.

 

[Andy78]

What legislation would you propose ? Only one I could think of that doesn't currently exist would be a maximum time limit on payment terms. Fines from a regulator or intervention by an ombudsman type service to prevent the time and costs to the parties involved and to the public would be a step forward.

One of the reasons I shy away from working for big companies in favour of private customers is this. Have worked for companies with multi million turnovers and they couldn't care less about the few grand they owe me. Always chasing for every payment.
I can do a domestic rewire for a private customer and usually have payment within 48 hours. Not seen any payment go over my 14 day terms this financial year.

My brother is an arborist and once got involved doing work for a large national company clearing telegraph and power poles from vegetation.
His terms were 30 days. Their terms were 90 days. Accept ours or tough, no work.
90 days would come and go. "You haven't sent us the invoice"
"Yes I have and I can prove it"
"Oh well it must have got lost, you'll have to wait til the next payroll day now. Payroll days are every fortnight"
Next payroll day would come and same routine would be trotted out. This continued until my bro was owed over £15k and hadn't been paid for months.
He suspended work for them explaining that his cashflow could not cope with this and it was unreasonable. They eventually paid up but just blocked his number. No further communication and no further work. Bullying at its simplest, truly disgusting.

 

[Octopus]

Germany have the right approach ....... everybody pays on 30 days

 

[Risteard]

On Sky News now Xero are suggesting that recent research they have carried out is stating that three quarters of small business are owed money outside of their payment terms.

Well I definitely fall into that 100%.

It would be nice for a government to bring in legislation of some kind to stop this practice of large companies using small businesses as bank loans.

They should call it Xero Tolerance.

All joking aside it's a serious issue, and despite what some have suggested on this thread private customers are not all immune to this evil behaviour.

 

[Nigel]

Germany have the right approach ....... everybody pays on 30 days

I bet that is not the case.

 

[Rosco]

Large companies are quick enough to impose a clause if a job overruns, but an invoice from a contractor .... yeah we’ll do that later!!!

 

[Andy78]

despite what some have suggested on this thread private customers are not all immune to this evil behaviour.

True, I find it a lot less likely personally though.

 

[Risteard]

True, I find it a lot less likely personally though.

Perhaps, though I've come across my share of them lately. Certainly I've also had businesses mess about with payment, though to be fair I've had an odd business which is very quick to pay.

 

[Deleted member 26818]

Might be slightly off topic?
Just heard that Tyco the firm doing the fire alarms at THFC have changed their T&Cs for making payments from 30 days to 90 days.
The agencies they use, NSR and BCL are now unable to pay the labour they have provided.
Agency workers usually get paid a week in arrears, so all are owed 2 weeks, though I have heard it is 3 weeks in some cases. Probably some left after not receiving their pay on time and others stayed hoping it would all turn out ok.
Tyco are refusing to pay the worker’s direct or to allow another agency to step in.

 

[TJ Anderson]

Might be slightly off topic?
Just heard that Tyco the firm doing the fire alarms at THFC have changed their T&Cs for making payments from 30 days to 90 days.
The agencies they use, NSR and BCL are now unable to pay the labour they have provided.
Agency workers usually get paid a week in arrears, so all are owed 2 weeks, though I have heard it is 3 weeks in some cases. Probably some left after not receiving their pay on time and others stayed hoping it would all turn out ok.
Tyco are refusing to pay the worker’s direct or to allow another agency to step in.

That should be between the Agency and Tyco surely? The agency should carry the wait not the workers. Agencies get paid for ruck all anyway!