Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: wightsurf on August 22, 2008, 03:34:41 pm

Title: Can i add late payment charge
Post by: wightsurf on August 22, 2008, 03:34:41 pm
I am thinking about this and how would the best way of wording it as the jobs of which i need to add this are very large. I have to put the invioces in soon and would like to know if i can add in the invoice terms a 5% charge will be added after 30 days and another 5% for each 30 days there after, I don't want to lose the jobs but don't want to wait 2/3 months either  for the payment.
Any thoughts
Martin
Title: Re: Can i add late payment charge
Post by: darragh windows on August 22, 2008, 05:14:59 pm
i think dont quote me on this that after 3 months you can start and charge them interest
Title: Re: Can i add late payment charge
Post by: matt on August 22, 2008, 05:38:49 pm
imho it would only take some1 to take offence at the wording and they will just get some1 else in to do the job

not worth the risk as far as im concearned

ive just had a commercail job not pay me for 4 months, it added up to a fair bit, turned out to be a issue at head office, but i didnt push it as its a good payer
Title: Re: Can i add late payment charge
Post by: Paul Coleman on August 22, 2008, 05:49:28 pm
I am thinking about this and how would the best way of wording it as the jobs of which i need to add this are very large. I have to put the invioces in soon and would like to know if i can add in the invoice terms a 5% charge will be added after 30 days and another 5% for each 30 days there after, I don't want to lose the jobs but don't want to wait 2/3 months either  for the payment.
Any thoughts
Martin

Firstly, it is illegal to call it a penalty charge and it has to reasonably reflect your costs (including time) in chasing them.
Although I don't do it myself, I believe it is far better to offer an prompt payment discount than to ask for compensation for late payment.  It can add up to exactly the same thing but sounds so much nicer.
Title: Re: Can i add late payment charge
Post by: David Slater on August 22, 2008, 06:28:28 pm
I am thinking about this and how would the best way of wording it as the jobs of which i need to add this are very large. I have to put the invioces in soon and would like to know if i can add in the invoice terms a 5% charge will be added after 30 days and another 5% for each 30 days there after, I don't want to lose the jobs but don't want to wait 2/3 months either  for the payment.
Any thoughts
Martin


Firstly, it is illegal to call it a penalty charge and it has to reasonably reflect your costs (including time) in chasing them.
Although I don't do it myself, I believe it is far better to offer an prompt payment discount than to ask for compensation for late payment.  It can add up to exactly the same thing but sounds so much nicer.

You are allowed to add interest on payments made late....I saw it on the web somewhere. I'll find it.

Is it advisable?...I doubt it.

I'd do what Shiner says - offer discount for prompt payment.

I havent paid my gardener for at least 4 months!! I would drop him like a hot brick if he charged me interest!

But we do have a very good relationship. He drops a bill through my door every so often and I leave a cheque under the doormat and send him a text to let him know its there on his next visit.

I suppose its all down to developing a good working relationship and building trust with your customers.
Title: Re: Can i add late payment charge
Post by: wightsurf on August 22, 2008, 06:39:09 pm
Yes i know what you are saying and i like the prompt payment idea,i think i will go with that in the future. But the first time i cleaned  this property i was payed the next day then it's gone down to next week month now three months.These are comercial and not monthly cleans just once, twice a year.
Title: Re: Can i add late payment charge
Post by: LWC on August 22, 2008, 06:42:41 pm
it is so annoying, i have so many outstanding payments at the min that i cant afford to do some things i want to like get my van sign written, which as soon as the payemtns come in i will book in, but on my domestic stuff i put at the bottom

Payment must be sent within 14 days.

If payment is not received within in 30 days of clean then a late fee of £2.50 will be added to the bill.

i dont think that as un fair and i have inforced it, and theyve been fine with me

i get charged for paying for things late which is their fault for not paying me so why shouldnt we pass it on?
Title: Re: Can i add late payment charge
Post by: wightsurf on August 22, 2008, 07:58:23 pm
I been charged before for paying late by BT  ::) £5.00  i think,if they can do i feel so can i. But prompt payment seems a good idea....I will just charge say £210.0 for doing the work and offer them pay in 2 weeks £ £200.  ;D
Title: Re: Can i add late payment charge
Post by: Wayne Thomas on August 23, 2008, 12:11:19 am
You can charge commercial customers interest for late payment, search though the posts on here.

I leave my customers a SAE together with a bill. On the bill it states; payment to be made within "X" amount of days or a late payment/administration fee of £2.50 MAY be added to the bill. I use my discretion and only charge anyone if they are a persistent late payer. It's only £2.50 but it gets the customers paying more promptly. It lets them know I'll use it if they start taking advantage of my good nature.
Title: Re: Can i add late payment charge
Post by: WavieDavie on August 24, 2008, 01:33:57 am
Visit www.payontime.co.uk

They have a calculator to work out the extra charges, and even provide a template for your letter to the firm who owe you money.

An excellent site.