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from edge2edge

  • Posts: 1507
Ask about payment terms
« on: June 12, 2012, 07:05:17 pm »
Went to quote a small commercial job which was going to lead to a slighter larger one.Got email to say i got the jobs but could i fill in a form first.They stated 60 days payment from invoice date.I wont wait that long so declined the offer and will have to ask commercial clients in future when they pay so as to save myself even bothering to quote as 60 days is a no no for me.........................Alan

derek west

Re: Ask about payment terms
« Reply #1 on: June 12, 2012, 07:18:08 pm »
good on ya alan.

I did a job a couple of weeks ago, £1500. this job cost me £300 to do (helpers wages petrol/diesel etc....). they asked me to quote for some more work so i said, once i receive payment i will quote for the other parts you want. they were fine and said they would wait. there payments are 30 days and TBH, thats long enough to wait. 60 days is just a pee take. give me domestics any day of the week. POC. thank you very much ;)

Carpet2Clean

  • Posts: 378
Re: Ask about payment terms
« Reply #2 on: June 12, 2012, 07:25:48 pm »
Hi

We had a 90 days payment just got the cheque.It was only a 100 pound job.

This is their new payment..


Richard & Tara

Re: Ask about payment terms
« Reply #3 on: June 12, 2012, 07:38:53 pm »
60 days? Yeh right..... find some other mug to do it.
14 days is on my invoices and at 21 days they start getting the annoying phonecalls

Len Gribble

  • Posts: 5106
Re: Ask about payment terms
« Reply #4 on: June 12, 2012, 07:51:42 pm »
The longest I wait is 45 days (but it is always loaded in my favour) but the norm is two weeks
Always bear in mind that your own resolution to succeed is more important than any other. (Sidcup Kent)

from edge2edge

  • Posts: 1507
Re: Ask about payment terms
« Reply #5 on: June 12, 2012, 08:02:55 pm »
Strange thing is i did a £160 job this morning and they are paying me straight away.(by bacs)They were impressed by my work so this should be the norm in my opinion.I should have said when i turned down the job that the next guy they ring should be informed of the 60 day deal before he turns the key in his van to look at it.........Alan

Steve Chapman

  • Posts: 1743
Re: Ask about payment terms
« Reply #6 on: June 12, 2012, 08:03:11 pm »
I guess it's whether it's worth it or not, for us 2 months is normal with some of our commercial customers but then we get lots of work from them and always get paid so we are happy to wait.

Plus there are ways to handle cash flow for these type of situations.

Steve

Andrew Briscoe

  • Posts: 1311
Re: Ask about payment terms
« Reply #7 on: June 12, 2012, 08:07:51 pm »
I probably do 70 % commercial, 30 % domestic and on com jobs can wait upto 8 week.
As we do contract cleaning I find it is the norm, and after you have built up a lot of
clients it gets easier, the domestic side keeps a good cash flow for me.

Have found lately that domestic clients ask if I send an invoice, I tell them I have it on me and will take payment now to save them a stamp !!
A few try taking the p*ss a lot recently.

Andrew

Jamie Pearson

  • Posts: 3407
Re: Ask about payment terms
« Reply #8 on: June 12, 2012, 08:49:04 pm »
90 days is pretty common. That or end of month +60 days.
The bigger the company the longer it can take.
ALWAYS get a purchase order or written instruction to proceed.

elliott cleaning

  • Posts: 778
Re: Ask about payment terms
« Reply #9 on: June 12, 2012, 09:31:39 pm »
Yes, 90 days for a one off job for ca £ 100+ is a bit much - but if you want to get into the big league and you are turning over jobs for a couple of thousand then you have to accept these payment terms.  If you can't sort out your cash flow for this sort of business - then it's best not to get involved in it

from edge2edge

  • Posts: 1507
Re: Ask about payment terms
« Reply #10 on: June 13, 2012, 05:51:58 am »
Thats a fair point i will just enquire as to their payment terms at point of contact not after quoting etc............Alan

clinton

Re: Ask about payment terms
« Reply #11 on: June 13, 2012, 07:49:40 am »
We do the same here too alan and on most of the commercial jobs get paid  after the job or up to 14 days.

Think in todays climate its a long time to wait 60 days.

Doctor Carpet (Ret'd)

  • Posts: 2024
Re: Ask about payment terms
« Reply #12 on: June 13, 2012, 08:22:46 am »
I don't really mind what a company's payment terms are providing I know what they are  AND PROVIDING THEY STICK TO IT.

Rog
Diplomacy: the art of letting other people have your way

JandS

  • Posts: 4327
Re: Ask about payment terms
« Reply #13 on: June 13, 2012, 09:11:04 am »
Once the council office gets my invoice
it takes 4 days to come through on BACS.
Why does it take some 90 days?

John
Impossible done straight away, miracles can take a little longer.

peter maybury

  • Posts: 916
Re: Ask about payment terms
« Reply #14 on: June 13, 2012, 09:42:03 am »
I have said this on posts before if you are going to get into the commercial market then you have to accept these terms. It is not a negative thing, the majority of my work is commercial and as long as you are doing volume it is not a problem. If you are employing people it is also nice to know that if you lose a contract for any reason then you still have 2 more monthly payments to help towards the wages and a couple of months to find other work to make up for it.
People are very luck if they are in the situation of being able to turn down work because of their priciples. The cost of the work that we do is nothing to the returns that we get, I would rather wait a while than have nothing.

Peter
www.carpetcleanercardiff.com

Helen

Re: Ask about payment terms
« Reply #15 on: June 13, 2012, 12:28:58 pm »
I have said this on posts before if you are going to get into the commercial market then you have to accept these terms.

You don't just have to "accept" terms. You can discuss and negotiate...whatever happened with people talking to each other?

We do work for one of the UK's largest facilities companies and we get paid within 5 days of doing the job... by bacs, because any company can do a payment run whenever they chose to!

Anything over 60 days is not standard anymore, it is just a reason to cover up the fact that these companies employ people not fit for the job involved
!


 It is not a negative thing, the majority of my work is commercial and as long as you are doing volume it is not a problem. If you are employing people it is also nice to know that if you lose a contract for any reason then you still have 2 more monthly payments to help towards the wages and a couple of months to find other work to make up for it.
People are very luck if they are in the situation of being able to turn down work because of their priciples. The cost of the work that we do is nothing to the returns that we get, I would rather wait a while than have nothing.

Peter
www.carpetcleanercardiff.com

You have to weigh up each job as it comes along, is it worth waiting to be paid, if that is so, can you negotiate better terms if you want the job etc etc, be it 90 days or 2 hours terms :)

from edge2edge

  • Posts: 1507
Re: Ask about payment terms
« Reply #16 on: June 13, 2012, 02:14:39 pm »
UPDATE     Just got an email and they will(on this ocassion) pay me by cheque or bacs on the day so doing it tomorrow.............................Alan

Jon Tabbener

  • Posts: 152
Re: Ask about payment terms
« Reply #17 on: June 13, 2012, 03:39:17 pm »
Well done for sticking to your guns al

I know what you went through when you got done for the best part of 10k so don't blame you for not wanting to wait 2 months

Cleaner Carpets

from edge2edge

  • Posts: 1507
Re: Ask about payment terms
« Reply #18 on: June 13, 2012, 05:02:06 pm »
Cheers Jon Its just a little noddy £80 job but the next one is £500 in January which wont take us too long and hopefully they will pay straight away mate...................Alan

Steve Gunn

  • Posts: 850
Re: Ask about payment terms
« Reply #19 on: June 13, 2012, 08:05:01 pm »
I always insist on payment on completion now after getting bumped the other month,doing a job tomorrow where they paid yesterday by credit card, to date only lost one client but they come back as they had complaints after someone else did it.