Guide to managing cashflow

Just found this and thought it worthy of a share, interesting reading

Of particular interest was this bit which I will now include on all invoices...

Whenever you write about payment terms, and on

your invoices, include the words: “We will exercise

our statutory right to claim interest (at 8% over the

Bank of England base rate) and compensation for

debt recovery costs under the Late Payment

legislation if we are not paid according to our

agreed credit terms. ”Even if you don’t intend to

do so, it can be a useful deterrent against late

payment.”

https://www.gov.uk/government/publications/guide-to-managing-cashflow

Just found this and thought it worthy of a share, interesting reading

 

Of particular interest was this bit which I will now include on all invoices...

 

 

 

https://www.gov.uk/government/publications/guide-to-managing-cashflow

thanks for info looks interesting will have a look when not half asleep

Just found this and thought it worthy of a share, interesting reading

 

Of particular interest was this bit which I will now include on all invoices...

 

 

 

https://www.gov.uk/government/publications/guide-to-managing-cashflow

But when the amount is £180 and the cheque arrives 3 months late, would you really be sending a further invoice for £4 for interest =8.5% for 3 months is about £2 per hundred pounds.

£1800 3 months late= £20 interest- even at this level, is it worth the paperwork and possible bad feeling. Certainly I wouldn't be pursuing through small claims for £20 of interest.

As Rupe has said before, Ok for large commercial clients, domestic ones may be scared off.

So the domestic clients might be scared off because they won't be able to not pay up for ages? I'm sick of the flippin customers that think they can hold off paying up. Last Wednesday I took 3 connys out and ground there stumps out. When I went up to the house at the end the guy had gone out, I left the invoice and put on payment by return please, a week later and I'm still waiting, it really pees me off that folk think they can have work done then make you wait. It's on reason why I hand am invoice over at the end of the job and ask for a cheque. The excuses they come up with sometimes are unbelievable. Why should I wait for my money when I have done the job. That's what screws cash flow up!

Sent from Hodge's eye phone using the new fancy Arbtalk Mobile App:)

One of the most effective ways of managing cashflow is to make sure you send off an invoice for work as soon as it's completed.

Whatever your payment terms are, if you haven't received payment by the end of 7, 14 or 30 days give the client a pleasant phone call asking whether they received the invoice and whether payment for the works you've carried out will be coming soon. This will solve 99% of most cashflow issues.

A useful tip is to ask a woman to do it for you, i.e. acting for your business. It sounds, ( however gender stereotypical ), more professional and is likely to succeed.

854207]So the domestic clients might [/b]be scared off because they won't be able to not pay up for ages? I'm sick of the flippin customers that think they can hold off paying up. Last Wednesday I took 3 connys out and ground there stumps out. When I went up to the house at the end the guy had gone out, I left the invoice and put on payment by return please, a week later and I'm still waiting, it really pees me off that folk think they can have work done then make you wait. It's on reason why I hand am invoice over at the end of the job and ask for a cheque. The excuses they come up with sometimes are unbelievable. Why should I wait for my money when I have done the job. That's what screws cash flow up!

 

 

Sent from Hodge's eye phone using the new fancy Arbtalk Mobile App:)

No they might be scared off because of the aggressive nature of the terms.

I bet 90% pay on the day.

It annoys me too! But I think my ego wont let me tell them how much it annoys me, i.e. I make out like its not an issue, but if the could just give me the bloody cheque now it would be very nice, thank you.

We did a job last week and got an actual cheque at the end of the day, it was the first time that has happened in ages and it made me go home happy!!

Agreed most of my stuff is commercial and La's etc so I dont expect immediate payment, but for domestic stuff its amazing how the cheque book dissapears at the end of the day.

Still, I wont be putting payment terms on domestic invoices (or quotes) its all about personal dealings and pleasantries (in my opinion) but yes, it does annoy the hell out of me as well, but so does not getting a cuppa etc etc.

I'm on 14 days on invoices and have been for years now and the bulk will pay up before that but last couple of years have had quite a few which have held on longer than that, which when you've been on largish hedge laying or fencing jobs which can mean tow or three weeks with no money coming in really screws up the cash flow, I have put the interest will be charged if not paid within 5 days on statements for really stubborn payers, which does seem to suddenly free off thier wallets