[John Gregory]

I've got several out standing invoices to commercial customer's how long should I leave it before I start pestering them for payment , I made the mistake of not putting any terms on my invoices.


Thanks John

[Aquakleen Restoration Services]

I put '30 days' on my invoices and even that isn't enough time for some places! 30 days is a good time and after that start pestering!!!

[Karl Wheeler]

Hi Mate
Don't do what i did and let them go for 90 days to be informed that the company had gone into administration owing me more than £3000.

Regards
KARL

[richie]

John,
The normal time for commercial customers is 30 days.  Expect this to go over with some of them.  I would say get onto them after the 30 day period as this is what i have always done.  Builders are the worst for paying follwed by entertainment companies.   Phone them at least every 3-4 days.  This normally does the trick.

Richie.

[Deep Clean Newcastle Gateshead]

30 days, but expect to be paid about 45 days, send statements out, if you have not traded with them before, start them on a 7 day account, builders Cash Only, unless they are a large builder.
Hope this helps
Aidan

[Neil Williams]

When it's time to get tough try quoting this one
Late payment of commercial debts (interest) act 1998

Somewhere in here you can tell them that you reserve the right to charge 8% per day on the outstanding amount. That generally does the trick as it did today with our local NHS Trust who were passing the buck on whose responsibility it was topay the bill.

[Doctor Carpet (Ret'd)]

Demanding interest for late payment is legally correct but often means that is the last job you get from them. Of course this may be a satisfactory solution.

When dealing, especially with new commercial clients, two good questions to ask them are
        1. what are your terms of trade
        2. who is it who will actually pay the bill

By finding out their terms of trade you can also factor this into your quote if they are slow payers. So when they do pay slow you have the satisfaction of knowing they are paying for the pleasure of delaying payment to you. You will also know that is is useless to start chasing after 30 days if you know full well they will not pay until 60.

(A friend of mine had a different business which did work for Local Authorities. His terms were strictly 30 days. He received a phone call from the accounts department saying they had a problem with this. When he asked why he was told that they normally paid after 14 days!!)

With regard to the second question it is often true that the person who awards the job is not the one who pays the bill. You need to find out who controls the purse strings. That is the person you chase, not the one who awarded the contract; the contract awarder is only interested in doing their job, not the mopping up of problems created ie. the payment of the cc's bill.

One way I overcome notorious slow payers is to "inflate" the bill knowing they are slow in paying and that I normally have to chase. But I also quote a discount on the bill saying they could pay the lower amount providing i am paid within 30 days. They have unfailing paid the lower  amount promptly within 30 days ever since relieving me of all the hassle of chasing and in fact paying me all that I actually ever wanted for the job in the first place.

Apologies for such a long comment.

[Kinver_Clean]

If you lose the customer that's too bad.
A good customer is the one that pays the bill, promptly, especially if you have done the job quickly.

Trevor

[spindle]

i always put 14 days on invoice but never expect to be paid before 30 days

some of the bigger companies would like to get you on 90 days....good for them but bad for you .........they are earning interest on your money!!!

ask len gribble about 90 day terms

[John Kelly]

Be aware that a lot of companies only pay when they recieve a statement. If you don't send one near the 30 day mark then your invoice is likely to lie in the in tray for evermore.

[Ian Rochester]

When's that statement coming John!!!!!!