[Jan K]

Hi all!

I am having problem finding the correct wording for my invoices, that will both encourage my slow or late paying customers to pay more quickly and also will not offend my prompt paying customers!

I almost lost a customer, due to the rather harsh working of my payment terms at the bottom of their last invoice. When I looked at it again today, I understood exactly where she was coming from!

I am now looking to reword the payment terms bit of the invoice once again, and am thinking I may need 2 standard invoices, one for prompt payers and one for slow payers, but that will probably only serve to confuse and frustrate me even more than it does now!

I wonder if there are any of you out there who would be happy to let me see the wording and layout of your invoices so I have something specific to grasp!

Cheers in advance

Jan 

[24-7 S C Services]

Hi Jan
What terms do you offer your clients?

My commercial clients have a 30 day credit period and invoices must be paid seven days after that.

Domestic customers have a seven day credit period.

If either of these is breeched, they receive a polite letter informing them of the credit terms and a copy if the issued invoice and asking them for payment by return.

I also offer a 5% discount on all invoices that are paid with seven days of issue. This 5% is already built into the contracts so I loose no money, plus, many of the commercial clients will pay straight away with a discount offered as they are saving money. (I learnt this many many years ago, after working in the accounts departments of 2 large firms.

90% of my customers pay on time thankfully, however not everyone is as lucky as this. The worst payers are builders firms, they can give you the run around for several months and I have previously taken four cleaners of site half way through a job, due to 3 months arrears. Once their account was up to date, the cleaners where allowed back on site, new terms and conditions where issued, Payment within 7 days of invoice issued or cleaning will cease.

I do not put any wording on my invoices apart from what is stated below, as I make it clear prior to commencement of any contract what the payment terms are and these are also built into their contract.


"PLEASE REMIT WITHIN 7 DAYS - THANK YOU"


Hope this helps

Andrew

[Tim Downer]

Hi Jan

My ones used to have on them:"Payment due WITHIN 28 days of the Invoice date, otherwise a late payment charge of 5% will be added"
As long as whatever you choose, you make sure the customer understand this, as they do not read the Invoices usually to find out the payment terms.

Good Luck

Tim

[Jan K]

cheers guys!

plenty for me to ponder over there......and change of wording coming up! Nice and simple says it all!

Jan

[Jan K]

Hi Andrew!

My payment terms are actually by return, but I allow 14 days before late payment charges and interest are charged!

I don't want to come across as heavy handed neither do I want to come across as soft! Oh the happy medium! Still learning you see!

Cheers!

Jan

[barryhynd]

Hi Jan,

Have you not thought of offering payment by Standing Order or Direct Debit. It will be more convenient than chasing up late payments.

Barry

[Jan K]

Hi Barry!

Yes, Standing Order only (can't do Direct Debits from my acount), but having said that, my customers don't always pay the same amount each month, so Standing Order isn't a sensible option!

Jan

[carloso]

hi jan
send me your email address and illl send you some info regards
carl
never2old@ntlworld.com

[toptobottom]

Do you give them the option of a direct bank transfer? Most of my customers do this as nearly all do internet banking,..time poor and all that.
Give your account details on the invoice or when you sign them up and they can set you up as a payee that way they can do it quickly even though the amount is different each month. No waiting for cheque clearance.
I think that your terms are more than fair, the vast majority of dom cleaners want payment after a clean so the fact that you are probably invoicing monthly? and then giving them 14 days after that is fair...you have your staff to pay ahead of this no doubt?!

[Jan K]

Hi toptobottom,

Yep already do that! Unfortunately not many choose to pay that way..........

Jan

[Jan K]

As a follow on to this I have today set up a system whereby I rate how quickly (or slowly) my customers pay. They have 14 days to pay an invoice, and anything after that is late, so I have rated them as follows:

7 days and under - excellent
8 - 11 days - good
12 - 14 days - satisfactory
15 - 21 days - late payer
21 days and over - credit risk

This way I can monitor customers and if there appears to be a perpetual problem, I can approach customer and discuss ways of making payment in an alternative way that ensures neither of us are struggling!

It will also ensure I do not upset any of my excellent paying customers!!

As I keep a spreadsheet set up in Excel of the dates I send invoices, the customers, the amount, when I receive payments and when I need to send out late payment letters, adding this extra column was easy, and I can now see starting from way back in September (when I first started) the patterns emerging!

Jan