Clean It Up
UK General Cleaning Forum => General Cleaning Forum => Topic started by: trudi on September 02, 2007, 11:42:44 am
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Hiya I was wondering how you guys deal with clients who consistently pay late. My private (domestic) customers pay for their cleans on the day but companies I clean for pay on 30 day terms. One letting agent who gives me a great deal of work is failing to pay any of his bills on time (one is oustanding for several months now). It has been suggested that I write off the bill oustanding as he does give me a lot of work during the course of the year, but he now has an invoice that is 5 months overdue and despite several letters, emails and face to face contact he has failed to pay. I have a good relationship with this company but am slowly losing my tolerance, do I carry on taking the business in the hope I will eventually get what is owed or do I withdraw my services? Advice would be much appreciated
Trudi
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Hi Trudi,
What's his problem with paying the invoice that he says you should write off? Has he said he is going to pay the other outstanding one? Can you afford to lose him?
Arthur
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send them a letter saying if they haven't paid within a date in 7 days from writing it then you will make a claim against them for the outstanding amount plus the £30 fee it costs you to make a claim against them.
go through this link. Very easy.
https://www.moneyclaim.gov.uk/csmco2/index.jsp
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As above: Give them a certain period in which to pay, or tell them you will take proceedings, if they do not pay up, then go to the small claims court, you can do it easily online, No one works for nothing, i have been there myself, they will pay up if they value your services.
Chris
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Hi all thanks for your advice and the link which I will go onto. I think I can afford to lose a customer who doesn't pay!! Its just having the nerve to be assertive enough. I enjoy most aspects of my business but asking for money, I feel very awkward. I think sometimes other businesse don't think cleaning companies are "proper" businesses" and as its "only cleaning" they try to take the p... (excuse my language). I think I will go down the small claims court as been suggested. I just need a push! I don't suppose he would let tenants live rent free in one of his properties so why should I clean for free. Thanks again. Will start the ball rolling.
Trudi :)
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Trudi they are trying it on give them 7 days to pay or else!!!!!!!!!!!
Good luck Fred
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commercial work & very late payments go hand in hand & its a continual headache, you have 2 ways to tackle this problem! put up with it & keep on at him to pay up or sack him. people don't realize that we have bills to pay etc, tesco's would'nt let you do a full shop & let you pay them 7mths down the line! freshi
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I am not sure that Trudi meant the client had suggested she write-off a payment.
But even if it was somebody else, you should never write-off payment for work you have done. At the very least, this would compromise all future payments!
It is true that most commercial, contractor payment runs are made on a monthly basis. You should take this into account before commencement of any contract. At the contract negotiation stage, find out their month-end date. (this is the date you will use for your invoices) Then set your terms at 30 days for full payment. But you must be slightly flexible here.
For example: Many developers use the last Friday in the month - as the month end (except December) This month it will be 28th September. Their payment run is usually the first Friday in the month - so payment for the work done in September will be on Friday 2nd November. (35 days)
Only in exceptional circumstances should you ask a commercial client to pay in under 30 days. It is not considered professional unless it is a large new contract requiring a huge outlay for extra staff.
In the situation you are now in, you must be assertive. Any invoice that becomes more than 14 days overdue should be followed up by a Statement. A statement is basically the same as an invoice, but it is clearly marked as being overdue for payment.
Issue these statements every 14 days twice more (so initial invoice + 3 statements = 72 days) The final statement should state: "On (date) this invoice will become overdue by 90 days. If payment has not been recieved in full before this date, County Court proceedings will be initiated without further notice."
Then it is simply a matter of meaning what you say. Take them to court: https://www.moneyclaim.gov.uk/csmco2/index.jsp
It can always be withdrawn by a simple phone call, when they do eventually pay up.
Hope this helps.
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I just thought I would clarify the situation. The guy who owes me money owns a letting agent. I clean all their EOT cleans and as far as I can gather he pays me from the tenants deposit so its not actually coming out of his business. He has paid other bills but they are always late. To make matters I now clean his own property on a monthly basis and his office so I would lose quite a lot of work if it all goes sour. Either way its a situation thats really annoying me and I need to get a bit a thick skin when it comes to asking for money - either that or I send my husband round!! Thanks all of you, its helps to be encouraged by you all.
Trudi :)
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you could introduce a clause into your T & Cs upon renewal for charging a late payment of invoices fee, iv heard some charge £20 - £30 per late invoice but i prefer to use a percentage myself
saying that, although he's a late payer maybe he has genuinely mislaid this old invoice, perhaps sending him a friendly reminder with a copy invoice or statement of outstanding monies attached may help :)
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I'd turn up at his house just when he is trying to sit down to eat with my plate and ask him for my share of his dinner - he will get the message ! I find sarcasm works better when people are away from their works and the wife will be on your side
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Thanks to all of you for the advice. It has helped. Contacted the client today, he sounded embarassed! I should have had the courage to call earlier, i just feel uncomfortable approaching clients regarding money, he says he will pay them straight away into my bank - will wait and see! Hopefully a good result, I won't wait as long next time.
Thanks again
Trudi :)
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i add extra to clients bill to cover late payment , deductable if paid within 30 days
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Hey guys
One company is owing me 4months invoice now what do do? Even though there is a £100 charge for each day that an invoice remained in areas ( that is after the 28 days agreed and signed). The amount is running into £10,000. I am sending them a letter to say I will be sending their details to a credit collection agency if they do not pay in 14days.
What's your take on this?
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£100 per day???
can u do that?? extortionate isnt it?
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Well my thinking was that that would make them pay in time. They company was aware of that at the signing of the agreement. £100 is stip I agree. That didn't make them pay. Even though it came up during the signing of the agreement.
Anyway, lets address what needs addressing:GETTING MY MONEY.
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::)
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::)
Glenda,
meaning?
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Sorry, it just sounded a little difficult to believe, I am not saying you haven't requested £100 a day for late payment, i am just curious to know how that would stand legally? You know, like with all the fuss about bank charges and the like, the charges made no real connection for the scenario that had taken place and because of this it was decided that a lot of charges should be refunded, even though they had been 'allowed' to make the charge.
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I agree with yu absolutely, I don't even want the charges they have incured. Just what they owe for services will o me to be honest. It's just suprising that despite been aware of the charges they still refuse to pay. I really don't know what to do with them.
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Hey guys
One company is owing me 4months invoice now what do do? Even though there is a £100 charge for each day that an invoice remained in areas ( that is after the 28 days agreed and signed). The amount is running into £10,000. I am sending them a letter to say I will be sending their details to a credit collection agency if they do not pay in 14days.
What's your take on this?
What type of work was it?A bit more info ie have they given you a reason for not paying?
Arthur
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It was cleaning. When I sent the invoice initially, I was told that the company director will like to speak with me before payment is made. I have called several times to speak with him but never was able to talk to him. So I have no idea why they have refused to pay. in th 4 months of wrking with them, there has been one complain of one of the bins been left. So I am ure it's nothing to do with our services.
I don't know if sending their etail to the credit collection agency will make a difference or just asking for through HMCS money claim online.
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Aside from any late-payment charges that you've added, how much was the original bill for? How much will it cost you to go down the avenues that you mention?
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£30 through money claim online. The others I have not looked at cos I have began to look into doing more than calling them.
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How much did you charge for the work?
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I would think having the £100 per day late payment charge would cause more problems than it would solve.
1. Makes you look like a loan shark
2. Would get your business a reputation
3. would scare potential customers
4. More likely to get customers falsly accusing of poor work to avoid cost because they forgot to pay on time.
5. If they accept the terms they may well do so because they have no intention of paying anything anyway!
6. probably un enforcable.
7. If you were ever to charge the £100's you would lose them as a customer.
I fully understand why you have done it and sympathise with the problem of late payments, after all its your money!!!!
Other people on here use a percentage discount for prompt payment and i think it may work for you also.
As for speaking to the director it sounds like you mean via telephone? either way I would at this stage get down to the office and if he cant see me there and then, "no problem, i will wait!". The account needs settling and firm direct action to asses whether or not they intend to pay would be the first thing i would do. There is no real need to threaten with credit collection companies as i dont think it's a threat taken seriously by people (everyone makes this threat). I would just explain what your going to do (small claims court), send final demand to the letting agency stating court action will be pursued after 7 days of non payment (keeping a copy). Then if they dont settle within 7 days just file the court form and forget about it, once they recieve the court claim they will pay it (usually!!).
Remember to be firm and direct, dont get into a debate (nothing to debate, they owe the money), put any communication in writing keeping copies and just get on with it. Once they see you a clear minded, determined and business like, you put your self in a good position to succeed.
best of luck
steve
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thanks
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Have you actually gone in and met the person in charge, ..with that amount of money owing i would be camped outside his door till he gave me meeting.
Chris
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Have you actually gone in and met the person in charge, ..with that amount of money owing i would be camped outside his door till he gave me meeting.
Chris
I have been there several times but no change.