Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Jor dan on July 29, 2016, 07:21:06 pm
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This is what the custy gets if they ask for invoice and to pay by bank transfer, and gave one to a commercial today:
and if it is too menacing, I blame you guys for your horror stories I have read about chasing payments, and about taking dirty water back to customers (would rather avoid that) ;D
Payments must be made with 14 days of completion of work.
Late payments will be charged an additional late fee of £40 for services up to £999.99
Late payments will be charged an additional late fee of £70 for services up to £9,999,99
(These amounts are legally applied under UK Business to Business late payment legislation laws)
Failure to pay after 5 additional working days of the late payment, will see the debt applied to a county court for recovery.
::)roll
(p.s) i dont have it in big bold letters, font size 30px, just small in the terms of payment.
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Industry standard terms are normally 30 days.......
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Imposing payment terms only appear menacing to people and customers who intend to muck you around.
Having said that if you work on attracting the right type of customer you seldom need to impose a payment term..
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Same as Steve 30 days is the standard....yes it does sound threatening
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£25.00 for us on late payment usually after 45 days, on the flip side offer a 5% discount on invoices settled within 7 days
John
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This is what the custy gets if they ask for invoice ...
My concern is not so much about the terms of your invoice but more the fact that you state -'if they ask for an invoice'.
I fear HMRC might be more than interested in you if your clients have the option from you of invoice or no invoice :o
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I have taken out the court bit, and changed the 'Will be charged' to 'May be charged' as I guess human error can occur in people fogetting, and it shows you are able to give leeway, but not be taken for a ride.
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On every quote simply write
Terms: payment upon completion.
It works for me and shows confidence in your work.
Every organisation can sort a payment if needed.
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But in reality do you always get payed on completion Jason?
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Yes I do from new customers, once we have built trust some are allowed credit terms, but only on well priced jobs in my favour.
Today I had an emergency clean at a Mercure hotel, on the initial call the housekeeper asked if I would send an invoice as she cant pay cash.
I said no cash on completion, and she just went in the till and got the cash, paid with a smile.
Cant usually means wont.
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I agree with Jason, although most like to pay by BACS and this is done the next day. If not, I keep phoning them. Never had a major problem with payments but it's pointless offering credit terms when it should be in their budget and they have the money available.
Having said that, if you do offer credit terms; shouldn't this be an agreed in a contract beforehand after they give you a credit application form? I wouldn't have thought you could slap these charges on the invoice at the time?
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Some of the organizations I deal with are 60 -90 days :o
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Surely a more basic thing to do when contacted by a new (potential) commercial client is to ask some basic questions before agreeing to the contract (work for payment).
Firstly ask what their payment terms are. If they are unacceptable then is the time to discuss it if its going to be a problem to you.
Secondly, if a larg(ish) organization find out the name/department who will actually pay your bill. Too often one individual instructs you to do the cleaning whilst another department (operating to their own rules) actually pays your bill. there's no point harassing the person who gave you the job if they are not the same person who releases the funds.
If you can find out the answers to these two questions then you at least have the choice of taking on the cleaning or at least knowing when you will be paid, and who to chase if it is late.
Rog
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On every quote simply write
Terms: payment upon completion.
It works for me and shows confidence in your work.
Every organisation can sort a payment if needed.
Absolutely.
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Hi Jordan
I'd personally remove all details of late payment fines, and pursuing county court judgements after 19days is ridiculous.
Prior to agreeing commercial work, ask what payment details are, tell them yours are 14days if you so wish, personally 30days is quite standard. Late payment act actually has 60 days as default time to wait.
Just put 14 days on invoice and get chasing after that length of time.
Mark
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Why give 14 days credit when people will happily pay on completion?