[Karl Wheeler]

Hi
This aimed at the guys that do commercial work, have you found people are stretching their account terms to sixty days, most of them would pay within thirty days
 I used to do the chasing of accounts but now have had to employ someone because it has become a full time job. Fortunately, we are busy but because of this i am busy quoting for work and not getting the time to chase the money in, hence the new employee.
Even the best payers now seem to be taking longer to pay.
I would be interested in other people views and are they experiencing the same. Our company is based in West Sussex.


Karl

[Fox]

Hi Karl

I have the odd client that I have to chase but most of mine are very good and because of the way we invoice - beginning of month for that months work - we can afford to wait an extra week or two.  Alot of smaller companies actually pay up front!  I usually only find a problem when the person in the customers purchase ledger department has changed but a couple of phone calls and they soon fall in line.  I have recently won a contract with a massive company (we just service one of their depots) they told me they pay invoices on 90 days only!  I had something to say about that and we eventually agreed on 45 days which they have been doing, we will see if it slips.

I really am not bothered by chasing money and will be like a dog with a bone until it's sorted so I suppose that helps, I should imagine it's the people who hate doing credit control who suffer!

Interestingly I am terrible at paying bills on time!  I usually need a nudge from the supplier as I am usually at least 14 days over if left to my own devices!

Fox

[PHILC]

I know exactly where your coming from i deal with a few large companies and they tend to have to wait 60 days before i get paid 
I got fed up chasing people for invoices and it got to the stage where I thought I would have to employ someone to deal with my invoices etc. I decided to use a factoring company which for me works out cheaper than employing someone. Also has solved my cash flow problem. I know some people may not like factoring but it works for me

[Karl Wheeler]

Hi
How do you find the factoring company and who do you use. Have you found it cheaper than employing a member of staff?

Regards
Karl

[PHILC]

Hello
it was by accident really i was having a conversation with a friend of mine about work and chasing payments and that it was beginning to have an effect on my business. He mentioned that when he had his own business he suffered the same and was told about factoring. I couldnt believe how easy it seemed so I arranged to see a couple of companies. Most were relatively the same ie rates etc but I opted to go with a company called Bibby Factors ( if you need anymore info email me and I can give you some contact details if anyone wants to chat).

Anyway the way it works is I submit my invoices once a month on my contracts and within 24hrs I can draw upto 70% of the total invoice straight into my bank so I dont have any cash flow problems. Also this means I can confidently go for the larger contracts without worrying about finding the money for the initial outlay.

As i said it may not be for everyone and I think they like your turnover to be over £60 p.a.
My charges are around £300-£500 per month for 8-10k a months worth of invoices which is a lot cheaper and less hassle than employing someone

Hope this helps anymore info please email me cheers

[Karl Wheeler]

Hi
I would like to chat with you about this if possible, please could you send me some contact details to karl@cleantechcleaning.co.uk.

regards
karl

[garyj]

There is a factoring compnay on your door step Neil called Close Invoice Finance, give them a ring and someone will come and see you. Getting INTO factoring is easy, getting out of it is a nightmare, they are in effect loaning you money and even the your smallest companies and best payers will have to be factored.

I had a turnover over over 300k when I factored and felt like I had lost control on my business some what, the paperwork was confusing anf the company difficult to deal with. It is very expensive to get out of it. 70% is low, most factorers go to 80% easily enough and 90% at a push.

Think long and hard before you commit and feel free to email me if you want a chat. In my experience they are in no hurry to et the money in as while you owe it you are paying interest at about 1.5-2% over base rate.

On paper a good idea, the reality is a little different. I admit it did help the company to grow, but you rapidly owe a lot of money.

The banks system is....overdraft....loan......overdraft.....bigger loan....factor. You also cannot have bot a overdraft and factor at the same time, again on paper that is resonable, in reality not always possible. All banks have there own Factoring divisions, check them out before deciding if it is for you or not!!

[PHILC]

As I said it may not be for everyone but it works for me
As for getting out of it I am on an initial 6 month contract (which was fulfilled 8 months ago)and after that its 30 days notice.

Be very wary of who you go with as some of the companies I had heard about as gary said can be a little bit slack when it comes to chasing invoices but with the company I use they are very quick with chasing up and also good at issueing all the legal letters to companies who are messing you about.

With regards to paperwork all i have to do is when i issue invoices i basically do them in triplicate
1 for me
1 for the client
1 for the factors