customer not willing to pay

[martom]

Hi everybody, I need some advice. I've done some rewiring work to a cafeteria, where I finished 10 days ago. After completion I send them an invoice - no reply. So after a week I send them few messages and an email asking about a date when they will pay. No replay. I send them another email asking for immediate payment. Received an answer that it's not professional to chase for a payment so quick, they need some reasonable time and that I'm a bully and they will report this to the police and trading standard agency so what should be my next step? A signed for letter asking to immediate payment?? Any advice welcome. Thanks. Tom

 

[Geordie Spark]

My terms are printed on my invoice , but IMO you are entitled to your money on completion of the work, when you buy a steak in tesco you pay straight away, why do these people think it should be any different, it's a good idea to agree terms before, the Police would not be interested and your doing nothing wrong, it's your money that you are owed

You're absolutely right - apart from the Tesco steak maybe ........

 

[Geordie Spark]

You have to be realistic. I have commercial customers, the worst by far is Welsh Water, who pay on 90 days. I factor this into quotes for work accordingly. Some pay up to 10% extra for this "service" although they are of course unaware of this. I don`t mind one bit as where else can you get up to 40% pa return on your money legally.

Most commercial customers have book keeping systems in place where invoices are paid at a set time after receipt. Often at the end of the month or at the end of the month following receipt. Very few pay on the nail.

I don`t pay my suppliers when I walk into the wholesalers and get some gear. I get an invoice at the end of the month which is paid at the end of the following month. Therefore goods and services I may have recieved on 1st February may not be paid for until the end of March ( 30 days after invoice)

I quite agree with the client in this case, it is unprofessional to badger them for payment earlier than this UNLESS you have an agreement to be paid on completion of the work.

And that's the trick ...... get it nailed-down tight and IN WRITING so everybody knows what the agreement is before you start the job.

Initially, it may take a bit of time typing/writing and faffing about with bits of paper, but when it all goes pear shaped you'll be glad you spent that bit of time because it will save you a lot of time and money.

 

[TaffyDuck]

You can`t compare buying a horse burger with doing work. You are buying a product. This is the way the world works, get used to it.

If you are employed you dont expect to turn up on day one and get paid do you, no. You expect to get paid at the end of the month so anything up to 30 days later and any overtime is likely to be another 30 days after that.

Try badgering your boss after a couple of days and see how far it gets you.

 

[Hiddo]

You can`t compare buying a horse burger with doing work. You are buying a product. This is the way the world works, get used to it.

If you are employed you dont expect to turn up on day one and get paid do you, no. You expect to get paid at the end of the month so anything up to 30 days later and any overtime is likely to be another 30 days after that.

Try badgering your boss after a couple of days and see how far it gets you.

Equally, you can't compare a PAYE with a lad running his own enterprise.

 

[saveloy]

What beats me is why any customer needs 30/60/90 days to pay an invoice. Just pay up FFS.

 

[Octopus]

I've got a client (not what I'd like to call him) who owes me £62.50 from Feb '12 - despite maiing him, and calling round not luck getting paid.

A couple of weeks back I called round and his son was there and he gave me his mobile number..... so I've texted him 3 times ad now have his email too... so I've sent copies of the communications to the son (who's in his 30's).... and the "son" has acknowledged the documents and has asked "Thank you so much for this info, pls allow me a few weeks to get to the bottom of this, we are going through some family problems at this stage."

Hum.......

 

[Geordie Spark]

I've got a client (not what I'd like to call him) who owes me £62.50 from Feb '12 - despite maiing him, and calling round not luck getting paid.

A couple of weeks back I called round and his son was there and he gave me his mobile number..... so I've texted him 3 times ad now have his email too... so I've sent copies of the communications to the son (who's in his 30's).... and the "son" has acknowledged the documents and has asked "Thank you so much for this info, pls allow me a few weeks to get to the bottom of this, we are going through some family problems at this stage."

Hum.......

How much are car tyres these days ......... he does have a car doesn't he???

Battery acid does a nice job of cleaning all the grime from a car's paintwork too.

 

[ian.settle1]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

 

[Silly Sausage]

How much are car tyres these days ......... he does have a car doesn't he???

Battery acid does a nice job of cleaning all the grime from a car's paintwork too.

I'm liking your thinking here but something more subtle for these Southerners I think!

 

[Geordie Spark]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

Well it was an interesting theory, but if they won't pay the principle amount, how much chance is there of them paying the interest??

- - - Updated - - -

I'm liking your thinking here but something more subtle for these Southerners I think!

I'm a Geordie bonny lad .............. we don't do subtle !!!!

http://www.youtube.com/results?sear....0.0.0.99.231.3.3.0...0.0...1ac.1.5tuh_SJi4Ok

 

[Octopus]

Thought the last goverenment had brought in that they had 30 days to to pay after you had invoiced them after that you are allowed to charge them intrest on the payment

When I do work for their "brothers" I add a supplementary charge so I'm recouping the loss over time. Personally don't like the scum - so once the money is paid directly or by their brothers future calls for work will be declined.

 

[Knobhead]

What beats me is why any customer needs 30/60/90 days to pay an invoice. Just pay up FFS.

It's called accountancy. Why pay out when you can use the money for something else.
It's why you want a trade account at a wholesalers.

When I was in engineering planning / purchase I expected 30 day from the preceding 28th of the month. If I spent £5000 on the 29th our terms of purchase meant the money was in the company accout for near two months earning interest. Unless we had to nothing would be bought after the 15th.

 

[LlandrilloSpark]

All tesco meat is about 99% water anyway !!

 

[dan86]

All tesco meat is about 99% water anyway !!

is the other 1% horse?

 

[MDJ]

Hi everybody, I need some advice. I've done some rewiring work to a cafeteria, where I finished 10 days ago. After completion I send them an invoice - no reply. So after a week I send them few messages and an email asking about a date when they will pay. No replay. I send them another email asking for immediate payment. Received an answer that it's not professional to chase for a payment so quick, they need some reasonable time and that I'm a bully and they will report this to the police and trading standard agency so what should be my next step? A signed for letter asking to immediate payment?? Any advice welcome. Thanks. Tom

A toughy, but welcome to the commercial industrial world, IME 28 days is the norm, usually when you finish a job you tend to phone the customer after a few days to see if he or she is happy with the works, if they are you then send an invoice with your 28 days terms, I usually wait 30-40 days TBH, the problem with customers at this level is they won't want to know you if you insist on payment earlier, rightly or wrongly quick payments at this level can finish a companies customer base, ringing them and chasing for payment after a couple of days can be amateurish In their eyes, cash flow is the difference betwewen success and failure, I do feel for you, and hope you get paid soon, however next time at this level you need to expect to wait longer, JMO.


Mike

 

[mankman2012]

Did you explain in writing or verbally to him/her what the payment term was? If so put in writing of when that was to remind them. Or you can record your converation with them so that you can have record of it for yourself. Also explain that asking for money is not classed as bullying/harrassment because you did not hear back from them. Trading standard wont do anything and nor would the police. You have the right to get paid , it not like you are sending them emails every minute of the day.

 

[ipf]

There is no requirement - legal or otherwise - to allow any credit terms to anybody - there never has been and never will be.

To allow somebody time to pay is just a courtesy that you may feel like granting them or not at your discretion. So, if you made it clear at the very outset that you wanted paying on completion of the job that's the deal your customer agreed to.

Always remember: a Verbal Contract - like a telephone conversation - isn't worth the paper it's written on. Get it all in writing BEFORE the job starts !!!

Samuel Goldwyn's famous comment.
Wrong there G. I won a small claims case on a 'verbal contract', about 1.5 k. It's still regarded as a legal contract.
'Legally, verbal contracts are just as valid as written ones. The problem is overcoming the burdon of proof...'
If there is no dispute that the work has actually been carried out, it is proof. The trick is in contesting how much the work is worth.

 

[vxwestie]

IN my part of the world (south west) its the unwritten expectation that everyone wants and expects a 30day credit. As others say bigger companies will want more...
All a part of this crappy business we're in Im afraid.

 

[ipf]

IN my part of the world (south west) its the unwritten expectation that everyone wants and expects a 30day credit. As others say bigger companies will want more...
All a part of this crappy business we're in Im afraid.

Thats why the bill goes up for the bigger company. Yeah ?

 

[vxwestie]

You got it in one, Ibf...

 

[tino1888]

Getting money from housing factors is a very excruciating exercise..

Quoted Feb 12

Invoiced 9th Sept '12 £2200,

Payed £1000 Dec '12

Payed £1200 Feb '13

I started panicking I wasn't getting my money..

 

[Guest111]

many years ago I used to do work for a well known firm of local solicitors,never a problem paying then as the jobs got bigger they started to keep me waiting,anyway I had a right do with them and was told they only paid out on the 28th of the month.So next time they wanted a job done it was about the 29th,I told them I was extremely busy and would attend in due course,I turned up on the 27th of the following month and sorted the job they said they were very pleased and would await my invoice,they didnt have to wait long as it was in my pocket.I handed it over with a smile and the words "I'll expect a cheque by weekend".

 

[UNG]

Had one years ago when a customer rang up wanting a machine repaired ASAP as he needed to complete a customer order that afternoon pointed out to him that we had an amount outstanding on his account going back about 4 or 5 months and if he had a cheque for us when we got there then we would repair the machine. I went to the customers premises and asked for the cheque that had been promised and was told when they checked their accounts it had gone in the post the previous evening I about turned and said we would call to do the job when the cheque landed at our office after some protests and annoying comments like "your boss won't mind if you fix it cos the cheque is in the post" my response to that was I am the boss and the guy you spoke to on the phone if you want your machine fixed now I suggest you cancel the cheque that's in post and issue a fresh one and write another one for £150 as a pre payment for this job. Got all the money and customer got his machine fixed so got a good result

 

[Knobhead]

Nice one UNG

Going back to what I posted earlier, several times I got caught out when we needed spares in a hurry. “Yes we’ve got them in stock. No you can’t have them until you’re account is cleared!” Quick phone call to the accounts department followed by a lot of shouting would get a bank transfer rolling. It was embracing at times when I had to talk to small specialist suppliers we owed money to. Most of the time we would have a supply contract which almost guaranteed £---,----XX of business for them a year. They accepted they had to wait until the 28[SUP]th[/SUP] of the preceding month but the turnover made it worthwhile for them.

 

[Jamie Parry]

What i find guys is i only work for people who will pay on completion its in my business plan (i only do private work) iv been self employed for 14 years and have tried lots of different ways of running a business. When i use to work for lots of account customers i found i was increasing overdrafts etc to support other companies cash flow and thats ok for some businesses but i didnt like the exposure it was to risky especially in this present climate. I now only work for customers that want to pay on completion and if there serious about having the work done thay dont have a problem with that my best slogan is ( ill do it when tescos do they have more money than me) i outline straight away soon as they agree to my price and i am willing to walk away from any job if they dont want those terms. That means i have enough customers on those terms to make a good living and charge fair prices instead of building in intrest etc as i have to wait i tell my customers i keep the prices down which i do as i dont operate any credit facilities.

 

[HappyHippyDad]

Well I hope he's been paid by now!

I actually remember this thread when it first came out!!

 

[Risteard]

Indeed. But 30/60/90 day payment terms are perfectly normal between businesses.

And I can't see how printing different terms on an invoice could change this as this would suggest that it hasn't been agreed beforehand.