chasing late invoices

[Spazz]

Out of interest what way has everyone found is the best way to chance late invoices?

I have tried phoning them, sending letters, sending emails, texting and I always get a not so good reply from the customer which results in them not using me anymore.
These invoices I usually chance are between 2 weeks and 2 months late.

Any ideas would be great, also for those using letters can you attach the letter you use that you find gives the best result.


Thanks all in advance

 

[Guest123]

This company are favoured by many on here.


The Thomas Higgins Partnership | Business Debt Collection Solicitors

 

[RISElectrical]

Usually give them payment period x 2 then advise they have a further 7 days to pay or I will add 8% and after that 7 days I will pass on the debt.

Maybe they won't use you again, however if they are 2 months late paying would you work for them again?

 

[Geordie Spark]

I used to use Thomas Higgins solicitors - find them on google.

I have been known to take my boys (3 of Swan Hunter's finest ex-shipyard lads) to the customer & told the customer to explain to my lads why he hasn't paid my my lads wages for that week. The debt was close on £7k and customer paid it in cash there & then.

 

[Geordie Spark]

Lenny beat me to it !!!!!

 

[Spazz]

I think that is a bit extream for what I need.

I want a nice polite way of reminding them that their invoice is overdue.
For those who just wont pay I have a customer who is a debt collector who I have used before and he seems to get a good result everytime

To be honest most of these have just forgotten or misplaced the invoice, and just need a gentle reminder, but they are not happy with a phone call (just to let you know your invoice was due last week), a letter (same as the phone call), email, same as the phone call, text to some of the regular ones who book work via text (same as the phone call).

They take offence to all.

 

[Octopus]

1. Emailed on first reminder
2. Phone call to follow up
3. Forwarded first email with second reminder polite reminder
4. Phone call to follow up
5. Polite letter stating if payment isn't made within 14 days I'll start legal action....

Works for me, but I rarely get bad payers.

 

[Geordie Spark]

I think that is a bit extream for what I need.

I want a nice polite way of reminding them that their invoice is overdue.
For those who just wont pay I have a customer who is a debt collector who I have used before and he seems to get a good result everytime

To be honest most of these have just forgotten or misplaced the invoice, and just need a gentle reminder, but they are not happy with a phone call (just to let you know your invoice was due last week), a letter (same as the phone call), email, same as the phone call, text to some of the regular ones who book work via text (same as the phone call).

They take offence to all.

Then I would be a bit more ... "selective" ... in choosing my customers, or load the price to cover the late payment & offer a discount for early settlement.

 

[Guest123]

60 days late takes the pee.

After the first invoice date has elapsed by 14 days, they get another one, the same as the first only the terms are 7 days from this date. If another week goes by they get another with lots of red capital letters on it with a further 7 days. If these 7 days elapse I get TH involved.


At the end of the day you've done the work you were asked to do, it's reasonable for them to pay what they owe within 30 days.

I have absolutely no time for people who are crap payers, and couldn't care less if they dont use me again as I wouldn't work for them anyway!


Please note, this refers to small to medium private customers, not to large building contractors and the like. Terms are a whole lot different there.

 

[Guest123]

To add, the final letter is also sent recorded. The more of a paper trail you have , the better.

 

[Spazz]

Most of these are agents and they dont pay till after they have had the rent from the tenent and pay me before they pay the landlord which could be upto 40 days if I do a job just after they have paid the landlord.

I like Murdoch's way, sounds like an idea.

I am meeting with one in the next day of two as they are not happy with how I emailed them reminding that the invoice was late (by 20 days - 30 day payment term(50 days after job done)) Less than £20 so not to bothered, it was just fuel for pricing up a job - they told me to charge them, where as I usually dont charge for pricing jobs.

 

[Geordie Spark]

60 days late takes the pee.

After the first invoice date has elapsed by 14 days, they get another one, the same as the first only the terms are 7 days from this date. If another week goes by they get another with lots of red capital letters on it with a further 7 days. If these 7 days elapse I get TH involved.


At the end of the day you've done the work you were asked to do, it's reasonable for them to pay what they owe within 30 days.

I have absolutely no time for people who are crap payers, and couldn't care less if they dont use me again as I wouldn't work for them anyway!


Please note, this refers to small to medium private customers, not to large building contractors and the like. Terms are a whole lot different there.

They certainly are - if you let them.

One very large company (they make tyres) kept me waiting 120 days for payment for the first job I did for them. The next & all subsequent jobs they paid up-front for !!

That was when I was an Exhibition Contractor & I told them my bank manager doesn't build Exhibition Stands & I don't lend money & if they need to borrow money the should be borrowing it from THEIR bank - not me or mine !!!

 

[Spazz]

60 days late takes the pee.

After the first invoice date has elapsed by 14 days, they get another one, the same as the first only the terms are 7 days from this date. If another week goes by they get another with lots of red capital letters on it with a further 7 days. If these 7 days elapse I get TH involved.


At the end of the day you've done the work you were asked to do, it's reasonable for them to pay what they owe within 30 days.

I have absolutely no time for people who are crap payers, and couldn't care less if they dont use me again as I wouldn't work for them anyway!


Please note, this refers to small to medium private customers, not to large building contractors and the like. Terms are a whole lot different there.

This sounds like an idea Lenny, thanks. I send the invoices via email with read receipt on them so I got the proof they read it. What would you recommend putting on the email?
Please find attached the invoice for (date)? Or be a little more - please find attached a copy of the late invoice??

Opinions?

 

[Geordie Spark]

This sounds like an idea Lenny, thanks. I send the invoices via email with read receipt on them so I got the proof they read it. What would you recommend putting on the email?
Please find attached the invoice for (date)? Or be a little more - please find attached a copy of the late invoice??

Opinions?

How about "Pay up or else!!" ??

 

[needasparks]

I tend to use an overdue remind letter first off giving them any chance to contact me if any of my work has a problem then i go down the friendly route of phone call asking when they will be paying.
At that point I know its going one of two ways, they pay or your able to start legal route early rather than being out of pocket for months before chasing. I normally find its the cold call jobs who give the most problems but i have develeped a nose for them over the years as the warning signs are in the first minute of meeting.

 

[Rockingit]

The 'traditional' polite reminder is to send a statement. Or another good ruse is the little white lie of 'had a hiccup with our paperwork and not sure whether we sent you your invoice or not - here's a copy just in case'.

But it depends on the customer, your relationship with them and chances of future work. But in my experience, clients who don't acknowledge corresponence from you aren't worth the waiting on.

 

[RISElectrical]

A good tip to not appear like your badgering for payment and to be polite is send an "automated" email. That way it looks like the software is reminding them and not you

 

[Spazz]

I have one letting agent who uses me only when things go wrong, they dont put any pressure on EICRs, even though I do state it in the recommendations attached after any work I do on all properties (if not done in last 5 years).

I will try the statement route first and see what happens - I have been thinking about sending statements every 28th of month so they can see what they have had done and on what property. I dont mind waiting a few extra days with this customer but they do tend to lose invoices.
I will also add a line on the bottom saying if they need a copy of any invoice please let me know.


Thanks all

 

[Spazz]

A good tip to not appear like your badgering for payment and to be polite is send an "automated" email. That way it looks like the software is reminding them and not you

I do this but they dont like it

 

[Geordie Spark]

The 'traditional' polite reminder is to send a statement. Or another good ruse is the little white lie of 'had a hiccup with our paperwork and not sure whether we sent you your invoice or not - here's a copy just in case'.

But it depends on the customer, your relationship with them and chances of future work. But in my experience, clients who don't acknowledge corresponence from you aren't worth the waiting on.

My sentiments exactly !