non payment by commercial contract

« **on:** March 13, 2006, 08:48:55 am »

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.

« **Reply #1 on:** March 13, 2006, 09:03:05 am »

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

« **Reply #2 on:** March 13, 2006, 09:03:59 am »

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

« **Reply #3 on:** March 13, 2006, 09:04:44 am »

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

« **Reply #4 on:** March 13, 2006, 09:07:04 am »

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!

« **Reply #5 on:** March 13, 2006, 09:16:39 am »

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.

« **Reply #6 on:** March 13, 2006, 01:19:21 pm »

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

« **Reply #7 on:** March 13, 2006, 04:25:59 pm »

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.

« **Reply #8 on:** March 13, 2006, 07:10:37 pm »

Quote from: williamx on March 13, 2006, 04:25:59 pm

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%.

Quote from: williamx on March 13, 2006, 04:25:59 pm

… 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

Quote from: williamx on March 13, 2006, 04:25:59 pm

…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

« **Reply #9 on:** March 13, 2006, 07:12:06 pm »

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

« **Reply #10 on:** March 13, 2006, 07:35:26 pm »

Quote from: AJCleaningServices on March 13, 2006, 07:10:37 pm

Quote from: williamx on March 13, 2006, 04:25:59 pm
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%.

Quote from: williamx on March 13, 2006, 04:25:59 pm
… for the clients who don't settle their account within the 30 days then you will charge an extra 10 to 15%...

Quote from: williamx on March 13, 2006, 04:25:59 pm
…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.

« **Reply #11 on:** March 13, 2006, 07:50:53 pm »

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

« **Reply #12 on:** March 13, 2006, 08:12:12 pm »

Quote from: williamx on March 13, 2006, 07:35:26 pm

...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.

Quote from: williamx on March 13, 2006, 07:35:26 pm

…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

« **Reply #13 on:** March 13, 2006, 08:14:13 pm »

Quote from: blacksheep on March 13, 2006, 07:50:53 pm

… 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

« **Reply #14 on:** March 13, 2006, 09:20:19 pm »

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!

« **Reply #15 on:** March 13, 2006, 09:32:58 pm »

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?

Quote

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.

« **Reply #16 on:** March 13, 2006, 09:38:28 pm »

William,

I am definitely not thinking of undercutting you...

Regards,
Arthur

« **Reply #17 on:** March 14, 2006, 06:05:09 pm »

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?

« **Reply #18 on:** March 14, 2006, 07:39:26 pm »

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.

« **Reply #19 on:** March 14, 2006, 07:53:03 pm »

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?

« **Reply #20 on:** March 14, 2006, 08:05:13 pm »

I would still like to answer your post:

Quote from: lisa123 on March 14, 2006, 06:05:09 pm

...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?

You can start charging late payment fee 30 days after presenting them with your invoice regardless whether you mentioned it in your terms and conditions or not.

If you wish to go that path you should get from them something confirming their satisfactory of you service first, otherwise once they get your letter they may refuse to pay to you at all, saying that you did a bad work.

The Business Link says:

Quote

If another business pays you later than agreed, you have the legal right to claim interest on the overdue amount. Unless your terms and conditions or invoices state otherwise, payment is due after 30 days.

Regards,
Arthur

« **Reply #21 on:** March 14, 2006, 09:30:56 pm »

Thanks, I didnt know if i was still entitled to, as it wasn't in my T&C's.
They are happy with our work, they have told us on lots of occaisions. I might send a satisfaction survey soon, just before the next invoice is due, I have it in writing then, being a bit sneaky

« **Reply #22 on:** March 16, 2006, 07:17:52 pm »

oh well, promised cheque is no where to be seen. $:-\$
It's friday 2moz (obviously) its our last day of the week cleaning. I think a meeting on monday will have to be arranged.

« **Reply #23 on:** March 16, 2006, 07:36:28 pm »

Quote from: lisa123 on March 16, 2006, 07:17:52 pm

oh well, promised cheque is no where to be seen. $:-\$
It's friday 2moz (obviously) its our last day of the week cleaning. I think a meeting on monday will have to be arranged.

Maybe they posted 2nd class.

« **Reply #24 on:** March 16, 2006, 09:31:59 pm »

when you said that you deal with the receptionist and she sorts it out with the accounts for you ,why dont you ask to speak to the accounts departmet seems to me that it all seems to be a bit like chinese wispers speak to the person who is responsible for paying the bill direct not some bloody receptionist that hasnt really got anything to do with it!!!!

cliff

« **Reply #25 on:** March 16, 2006, 10:01:40 pm »

It's always been her that we deal with.
Anyway, if nothing srrives in the bank or the post in the morning, then words will have to be said.

« **Reply #26 on:** March 16, 2006, 10:32:12 pm »

Lisa,

As Cliff said , phone up and ask to speak to accounts, tell them you'll pick the cheque up in person

« **Reply #27 on:** March 17, 2006, 06:41:40 am »

Or tell them your sending "the boys round"

chris

« **Reply #28 on:** March 17, 2006, 08:04:25 am »

hi ya lisa, i am having the same trouble, may be if you ask accounts that if their having difficulty paying ,a standing order may be a better route and more of benfit to both parties. I am going to insist on this now as i wanted do do this in the begaining but the comment was made were not going anywhere ! i should have pushed it.i rang ,shes never there, when i go to clean i feel shes avoiding me.I should now in hindsight, sent the first invoice out the first day i started the contract and i would not be in a cash flow problum now.and looking at it that way , they are only behind in febs but i am sending out my next invoice on 28 and cant afford to to not get paid again. I am trying to word a letter without saying the cleaning is going to stop because i cant afford you lot.

« **Reply #29 on:** March 17, 2006, 10:11:43 am »

Its all fun and games isn't it black sheep. I see it all as a learning experience, and confidence building.
I received a remittance advice slip today stating my paymkent had been credited by cheque. I haven't seen the cheqe so maybe they paid it direct to the bank.
I'll write to them and insist that they set up a standing order payment with the bank, or a direct debit. Has anyone got a direct debit request form??
I'm also going to state that if payment is late on further occaisions then charges and interest will be applied. Maybe this will get them to pay up.
Have a word with yours blacksheep, would a court letter get them to pay?

« **Reply #30 on:** March 17, 2006, 10:53:09 am »

hi

if i was you i wouldnt go down the court route!!! this will only cause problems.

if a client is a late payer i advise to speak to the accounts as i said above!i myself would never refuse to clean a place because there was a payment over due unless it was a month over but it would be the last thing i would want to do..

if you refuse to clean it is more than likely they will boot you out!

and what would u prefer no job at all or a late payment?

« **Reply #31 on:** March 17, 2006, 12:27:34 pm »

the chq is here!! hurray

i didn't want to stop service, but it was 16 days late. i havent had to stop service as chq is here.
i will write to say if payment is late again then i'll charge interest of 8% plus base rate per day until payment is received, and £25 per week that we have to chase. Is this allowed?

« **Reply #32 on:** March 17, 2006, 12:31:22 pm »

I have one lisa, when my son come in i will get him to scan it on here, if you can do that, not much good with pc

« **Reply #33 on:** March 17, 2006, 12:34:20 pm »

lisa , send me your address to my e mail and i will send it by post to day kiscleaning@hotmail.com

« **Reply #34 on:** March 17, 2006, 12:58:33 pm »

you have email blacksheep xx

« **Reply #35 on:** March 17, 2006, 02:40:29 pm »

post man pat on his way

« **Reply #36 on:** March 18, 2006, 03:15:00 am »

Lisa,

I have now responded to your e-mail, but I am afraid that instead of MONTHLY you should read YEARLY…

However, I have found this link were you can calculate the amount of interest you are entitled to charge on outstanding debts...

Hope it helps,
Regards,
Arthur

« **Reply #37 on:** March 20, 2006, 12:30:45 pm »

Thanks blacksheep i got the form

Thanks AJ for all your help. the cheque is now in the bank waiting to clear.

With the next invoice I'll send them a form to set up standing order, hopefully that should stop it from happening again..

« **Reply #38 on:** March 20, 2006, 06:14:03 pm »

glad to help

« **Reply #39 on:** March 20, 2006, 07:32:50 pm »

just have a quick question blacksheep, you know where it says to barclys, at the top, do i put the name of my bank there?

« **Reply #40 on:** March 21, 2006, 07:47:44 am »

I got mine from my bank,you could tipex it and put your bank name in place in black ink , see what happens .Not sure if all banks are the same . If you ask at yours they will give you a couple to photo copy and use, have you got a business account.

« **Reply #41 on:** March 21, 2006, 10:11:30 am »

yeah i have a biz bank acc now, i'll just tipex and photocopy

Thanks xx

« **Reply #42 on:** March 21, 2006, 06:15:42 pm »

Hi Lisa,

How did you manage to get your business account then? You had the same problems as me , how fif you overcome them?

Cheers

Denisexx

« **Reply #43 on:** March 21, 2006, 08:54:58 pm »

hi denise

i dunno what happened !
my own bank wouldnt give me biz account, and some of others didnt want to know me.
lloydstsb gave us one straight away, maybe they know something i dont.

« **Reply #44 on:** March 21, 2006, 09:15:57 pm »

Quote from: lisa123 on March 21, 2006, 08:54:58 pm

...my own bank wouldnt give me biz account, and some of others didnt want to know me...

Who do you bank with?
Regards,
Arthur

« **Reply #45 on:** March 21, 2006, 10:08:30 pm »

natwest is my personal account holder, have been with them for 3 years, was with hsbc, and halifax previous to that.

Whe i was 16 i had a tsb account that my parents set up for me when i was at college. closed it a few years later.

Now lloyds tsb have opened their arms to me. my credit score is terrible though.

« **Reply #46 on:** March 21, 2006, 10:11:28 pm »

Lisa, you should edit your last post and delete last sentence.
Regards,
Arthur

« **Reply #47 on:** March 21, 2006, 10:13:53 pm »

why? I'm not fussed if people know about me

« **Reply #48 on:** March 21, 2006, 10:15:02 pm »

« **Reply #49 on:** March 21, 2006, 10:15:49 pm »

Lisa

Bet you £10000 that I owe more than you

« **Reply #50 on:** March 21, 2006, 10:19:52 pm »

ha ha

I'm good with my money these days, i blame dodgy ex boyfriends who got too friendly with my money for the big debts i have.

It prob wasnt much compared to other people, but its loads to me.
nevermind, forget i said it.
i must remember to stop being so honest lol

« **Reply #51 on:** March 21, 2006, 10:46:29 pm »

Just read this thread Lisa123 - can I offer my experience of the commercial world.

Lots of larger firms are set in their ways - they pay 30 days and the wheels grind to that speed. Sometimes you see the words 30 days net or nett - this means that if you send them an invoice at any point in one month they'll not pay you at the end of the following month.

So by and large we adapt to their ways.

However you can play your cards too such as.

When you get the contract - at that point say "We're a relatively small firm with wages to be paid weekly - can you pay us more promptly?" or "Can you pay from petty cash?" or "A cheque on completion?"

(One firm I deal with pays me £70 cash upon receipt as soon as I finish the job! It's a bit embarrassing because I have to stretch it to take two hours! - Another insists upon an invoice for £35 because "thats what their accountant told them to do".)

So we have to be flexible.

But... I do not get taken for a ride - I have the number of all the accounts staff and I am on first name terms e.g. "Hi Sally it's only me, your window cleaner - any chance of getting that little £250 cheque off to me? The kids need new shoes and the wife's running low on Vodka!"

Or when the promised cheque hasn't arrived "Hi Mike, you know that cheque you said needed a second signature? Any chance of chasing it up only I need it because I can't get the Bentley out of the garage until I pay for the new tyres!"

A bit of humour seems to work when judiciously applied!

Malc G of the "once took a solicitor to court for £600 and got paid the day before the hearing" class! (Actually they are easy meat - they daren't get a CCJ!)