Late payments

[robd]

Evening all,

Just wondering how long you would wait on a payment and how long before you send a reminder and what sort of thing would you send as a reminder? Just wondering as I've got a couple that have been a couple of weeks, not that long I know, but don't want to leave it too long as one is for a quite large amount (to me) and whilst I can manage without it I don't want it to rumble on.

Many thanks
Rob

 

[Octopus]

I leave most people about 28 days, but very rarely have to chase them. Commercial clients I allow 45 before hassling customers

 

[Darkwood]

What industry sector you working 'domest, commercial etc)?
What business size is your customer (If applicable)?
What are your terms for payment?

 

[robd]

Domestic, well off cust. Naively perhaps don't have any terms although my understanding is that unless you agree a payment date the cust must pay within 30 days of the invoice (that's according to gov.co.uk at least).

 

[robd]

Will put a payment due date on invoices going forward, thus far have had good payers and hasn't been an issue although I realise this will not always be the case!

 

[Geordie Spark]

Evening all,

Just wondering how long you would wait on a payment and how long before you send a reminder and what sort of thing would you send as a reminder? Just wondering as I've got a couple that have been a couple of weeks, not that long I know, but don't want to leave it too long as one is for a quite large amount (to me) and whilst I can manage without it I don't want it to rumble on.

Many thanks
Rob

Plenty of info here >>>>>>http://www.electriciansforums.co.uk...earch.php?searchid=3586445&ss=7184j3278028j20 <<<<<<<<

Search and ye shall find!!!

 

[Darkwood]

Put a payment term at the bottom of your invoices of 28days if just domestic then send a copy of the invoice with a reminder cover note but do not word it negatively and print you contact details with a note saying 'Don't hesitate to contact you if you wish to discuss the above invoice'.

Give it another 2-weeks and make direct contact either by phone or go to see them, again be polite, ask if there is any issue or problem paying your bill that could be resolved with a 5min chat... ask for the bill to be settled withi the next 7 days and express they are 21 - days overdue already -- end the conversation on good terms do not get demanding.

If no payment within 10-days then send a final demand for immediate payment with a sterner worded letter, call them 48hrs later and express you are passing the owed money onto a 3rd party 'Debt collecting agency' and they will pay yourself in full and seek to collect the money + additional costs for their time and services 'typically a few hundred quid for the first visit'

This usually is what gets the truth (which cant be discussed) or a immediate payment.

NOTE!!! this is for domestic only ... commercial and industrial customers work differently and you need to discuss their payment terms before taking on the work, either make an arrangement beforehand or even discuss a 5% / 10% discount for early payment.. many of my larger customers pay on 8 weeks but some pay on 12 weeks, this is not uncommon and you need to ensure you can ride this payment term as pestering accounts for them to change their payment terms just for you can have negative impact on future works.

 

[Paul.M]

Just to add to Darkwood's excellent post, ask the commercial customers when their invoice cut off date is and what date the payment will be made. This could save you an extra 30 days without payment if yo dont get your invoice in on time.

 

[Adam W]

Plenty of info here >>>>>>http://www.electriciansforums.co.uk...earch.php?searchid=3586445&ss=7184j3278028j20 <<<<<<<<

Search and ye shall find!!!

Those are old threads!

I ask for payment within 14 days, although those are mainly agencies and contracting companies - I don't think it's unreasonable to expect your wages within this time. I'd wait another week before sending out a reminder - basically the same invoice with 'Reminder' instead if 'Invoice' at the top.

 

[robd]

Cheers all, appreciate it.