[maggie67]

I am in the middle of my first quote and wondered if you state payment terms at this point.
It is quite a casual arrangement and they do not need too many specifics but I would like to do the 'norm' if there is one!
It is a monthly arrangement. Is it usual to receive payment monthly in advance (commercial work/communal areas)
Many thanks
Maggie

[Jan K]

i don't know what the 'rules' are for commercial, but in my dom clean business payment is monthly in arrears (can't expect Clients to pay for service not yet received), but also they have to ensure payment is made before next visit is due after invoice (that means within a week for most). That way I ensure my Cleaners and I don't work for nothing. Also state that if payment is not made before next visit is due, then we don't make the visit!! Bit harsh I expect but I am not geting caught out with clean after clean without payment. I worked for an Agency before and even tho the Client paid me, they never paid the Agency (for over 3 months). I was pulled out in the end, so I also lost work. I won't get caught out that way myself!!

[AuRavelling79]

Alwaysstate/negotiate payment terms at the outset - less misunderstandings later.
If it's for a business and less than say £50, you might try to ask for immediate settlement of your invoice out of petty cash or immediate cheque.

If more then you may need to send your invoice to the accounts dept.

Sometimes with larger firms you may choose to accept their terms (eg 30 days net) which means at the end of the month following the thirty days.

If you're in direct contact with the accounts dept you can often ask them to pay you "a bit quicker" as it's "such a small amount" (to the company you're working for it is probably a small amount if not to you personally! )

[Tim Downer]

Hi Maggie

Thanx for your PM...fingers crossed at this end too!!

I am assuming that this is for a Commercial Tender? Then yes, I would state the payment terms at the begining, usually something in the region of: " Payment due strictly 30 days from Invoive date..." or however you wish to put it.

If it is a large sum of money, it may even be worth putting on the Invoice itself: "If paid within 7 days of the Invoice Date the amount payable is: £00.00 (or give a percentage off i.e 5%) This encourages some companies account depts to pay you very quickly.

However, if as Malc G has mentioned, the Company want you to pay on their terms, this can be anything up to 90 days after Invoice date!! So mentioning the payment terms at the begining will sort all the above out. Usually this apply's to the bigger corporation firms, So Management agencies etc that you have been talking about usually pay a month in arrears.

You should always have everything down in writing, even if it is just a "casual arrangement" as this will solve any payment difficulties.....

And to answer your other question, No, it is not the norm to be paid in advance for commercial work.

All the best

Regards

Tim

[maggie67]

Hi all 

Another question answered
Another problem solved!

Thanks for all your helpful advice

Maggie

[dustycorner]

Hi Maggie,

I invoice on the 24th of each month most of my clients are either on 14 or 3o days, my staff are all paid monthly on the 5th giving plenty of time to chase debts. In my terms and conditions is a paragraph stating that persistent late payment will incur a £25 late fee admin charge or 10% of the monthly bill whichever is greater. This does focus the client on paying on time .

Kind Regards Mark.

[maggie67]

Good Idea

I like the clause re persistent late payment and will use something similar in future

Thank you Mark.

[Just a cleaner.]

Any of you with commercial customers are legally entitled to charge a minimum of £40 as compensation for late payments.  You can also charge interest at about 12%
Findout more at this site. http://www.payontime.co.uk

[Ian Gourlay]

If it is regular work and a fixed priced contract why not have them pay by Direct Debit

After all thats how you pay Sky, BT, Just Talk, Gas, Insurance, Appliance Breakdown etc etc

[maggie67]

That is an excellent idea very good idea Ian, I think this will certainly be the way forward with  fixed contract work in future.

Regards

Maggie