[lisa123]

Hi I'm looking for some advise.
One of our commercial contracts, hasn't paid up yet, payment was due before 7th March.
It would be their 1st payment to us, and i'm not sure what to do next.

[Fox]

Hi Lisa

Don't worry - 1st payments often run late while the client gets you set up on the system. 

I would call them and just say you are chasing payment for inv no ... and they will let you know where they are with it.  While you are on the phone confirm your payment terms.

Don't let a 30 day account go above 45 days, call every day if ness, they will soon make a note that you are good at credit control and will be much more likely to pay on time.

Hope this helps
Fox

[*Chris Browne]

Hi lisa,

what type of company are they? if they are in the building trade, then that's pretty norm!
Did you get it in writing as to when they should pay you? i would just give them a polite phone call and just say" hi I'm just chasing up an invoice , i wonder if you could look into it for me" My contracts are all told to pay within 30 days and i would say that less than 20%  actually do! like it or lump it we are on the bottom shelf when it comes to payment..shame but that's the way it is.

chris

[Simon H]

Hi Lisa

What terms are they on?

It is only a week overdue

Not much at all in the commercial world : :

I woulnd't worry yet 

Simon

[Fox]

Chris - only 20% on time!  I'd be pulling my hair out!  I'd say 80% of mine pay on time (or within a week) and 20% have to be chased or pay 45 to 60 days.  Mind you I am a bit of a bull dog when it comes to getting money in!

[lisa123]

thanks.
they are an advertising company, so its only daily office cleaning.
My invoice clearly states 30 days but its really 37 cos i allow 7 days for payment to clear. That would mean payment due 7th march.

[*Chris Browne]

ive just totted up, on average over the last 3 months 33% have paid within or on the 30 day limit and yes i am bold(not really) and most have paid within 45 days except for a couple of strglers who dont pay till i beg but they do pay and i dont hassle them to much as its a nice proffitable contract.

chris



www.scsf.co.uk

[williamx]

Lisa

What you can do is amend your 30 day accounts so if your clients pay within this period then they will recieve a 5 or 10% discount, and for the clients who don't settle their account within the 30 days then you will charge an extra 10 to 15%.

If they have not paid up by the time you are going to send out the next invoice, then suspend their services untill payment is recieved and also imform them that they will then need to settle their account weekly.

[AJCleaningServices]

Lisa

What you can do is amend your 30 day accounts so if your clients pay within this period then they will recieve a 5 or 10% discount…

William,

As far as I know Lisa does not charge a lot, so it would be very difficult to offer 5% discount, never mind 10%. 

… for the clients who don't settle their account within the 30 days then you will charge an extra 10 to 15%...

You cannot charge what you want for the late payment, for more info you should visit The Business Link website or Pay on time . co. uk

…If they have not paid up by the time you are going to send out the next invoice, then suspend their services untill payment is recieved and also imform them that they will then need to settle their account weekly.

Once you suspend providing your service they will never let you back, you would be able to get your money however, but that would be IT.

Regards,

Arthur

[AJCleaningServices]

Lisa,

We have not got many commercial customers, which we clean on a regular basis, less then 10, I would say, all of them are quite small companies.  We have never waited for a payment for more than one week. 

I think a lot depends on relationship which you have been building with your customer.  I would suggest you to speak to them explaining that you are a small and new business, which would not survive once cash flow difficulties arise…

It worked for us, should work for you…

Regards,

Arthur

[williamx]

Lisa

What you can do is amend your 30 day accounts so if your clients pay within this period then they will recieve a 5 or 10% discount…

William,

As far as I know Lisa does not charge a lot, so it would be very difficult to offer 5% discount, never mind 10%. 

… for the clients who don't settle their account within the 30 days then you will charge an extra 10 to 15%...

…If they have not paid up by the time you are going to send out the next invoice, then suspend their services untill payment is recieved and also imform them that they will then need to settle their account weekly.

Regards,

Arthur

Arthur


As far as I know Lisa does not charge a lot, so it would be very difficult to offer 5% discount, never mind 10%. 

If lisa went in with a price which was 5 to 10% higher than normal them she would have no problem reducing it by this figure.


You cannot charge what you want for the late payment, for more info you should visit The Business Link website or Pay on time . co. uk

You can charge a extra 8% plus the Bank of England interest rate though.

Once you suspend providing your service they will never let you back, you would be able to get your money however, but that would be IT.


If a customer won't pay his invoices, how long would you continue to work for nothing.

I do a lor of work for a brewery and had the same problem, until I refused them my labors, when the general manager phoned to enquire why I simple said, what would be his companys attitude be if I went into their pubs and order drinks all night and then said I would pay them 3 months down the line, or maybe later as was their case with me.

They now pay on the same day that I carry out work for them, or no work is carried out.

A customer is someone who pays when i want them to.

[blacksheep]

hi all i have the same problum as lisa ,except the first invoice they paid ,this is the second and i am aware that i made a few mistakes .such as because i work the contract myself i put the invoice in their in tray, i should have posted it and i gave a bacis contract did not give them my full terms and i think its a bit late now the third biggest mistake was i never kept a copy of the specs..On my invoice i wrote please remit within 7 days. but has not worked so waiting till their due the next one and send a double bill or is this a bad idea regards blacksheep

[AJCleaningServices]

...If a customer won't pay his invoices, how long would you continue to work for nothing...

As I have explained we always get paid without a delay, so we do not work for nothing.

…I do a lor of work for a brewery and had the same problem, until I refused them my labors, when the general manager phoned to enquire why I simple said, what would be his companys attitude be if I went into their pubs and order drinks all night and then said I would pay them 3 months down the line, or maybe later as was their case with me.

They now pay on the same day that I carry out work for them, or no work is carried out.

A customer is someone who pays when i want them to.

I personally do not think that my customers would keep using my service once I confronted them by withdrawing my service.

William why is your service so special that they continue to use your service:
1) Are you the only the service provider in your town/city?
2) Do offer “cheapest best quality service” in your town/city?
3) Something else?

I do not think I can add much to what I have already said – we build a good relationship with our customers and we have not got any problems with payments.

Regards,

Arthur

[AJCleaningServices]

… so waiting till their due the next one and send a double bill or is this a bad idea regards blacksheep

Why would you not talk to them? 

We do not post invoices, we deliver them, we do not have any written terms and conditions, but we have some verbal agreements and always get paid without a delay.

Regards,
Arthur

[shelton]

I agree Arthur.

I am a stickler for manners and treat others as I wish to be treated - haven't had a problem to date - maybe we're just lucky

Blacksheep - Just talk to them!

 

[williamx]

William why is your service so special that they continue to use your service:
1) Are you the only the service provider in your town/city?
2) Do offer “cheapest best quality service” in your town/city?
3) Something else?

I think that they continue to use me because unlike the others cleaners, I always turn up on time what ever the weather conditions, I offer a very good service, and as far as I'm aware I also charge more than there previous cleaners that they have used.

I have a friend who is employed by a large company to delay paying invoices for as long as possible.

[AJCleaningServices]

William,

I am definitely not thinking of undercutting you...

Regards,
Arthur

[lisa123]

hi everyone
My biz partner who is doing the companies office cleaning left a note for them last night to call us, they are normally there when she starts cleaning. Anyway, no one called today, I'm waiting to hear from her to see if they have left us a note, this is usually what happens, notes left for each other.
I'll definatly be ringing them or visiting them tomorrow.
I have get the clause of service to be ceased if payment is not made on time to the invoice date. I didn't put the charges clause in this contract, I should have but it isn't there.
Can i still charge a late payment fee?

[williamx]

Lisa

I don't think that you can now charge them a late payment fee, because its a new amendment to your terms and conditions.

But you can tell them that all futher invoices must be payed on a pro-forma invoice.

[lisa123]

problem solved, hopefully 
I don't why they were paying late, but the receptionist girl we deal with, chased up payment with accounts, and a cheque is on the way. Lets hope it arrives before friday.

Thanks for your advise everyone.
If it happens again, what should i do?