Payment on completion

[Taupotreeman]

OK, so I'm getting a bit frustrated with some of my one off customers. I run 7 day invoices for the every day customer and 30 day invoices for the bigger companies and councils. The frustrating part is people who refuse to pay their invoices until they're ready, usually with the quote "we don't pay our bills until the 20th of the month". I've tried the nice phone call, interest fees and overdue payment fees but some people remain oblivious to the fact that I have a business to run and roof to keep above my head. Does anybody else have the same problem and if so, how do you deal with your overdue accounts? Do any of you demand payment (maybe demand is a little too strong a word) on completion of the job or do you just wait until your customer is good and ready to pay?

[Mike Hill]

If your problem is with businesses then you have to pre arrange payment before you start,ie have a payment date agreed on the quote.

 

I can't see it being a problem with domestic customers,many people in NZ still use cheque books,so could they not leave the cheque?

 

We subscribe to a debt collection company,it costs about £300 per anum.They give us 97% of the debt upfront and take the case from there.We have used them a few times and feel its money well spent.

 

Maybe have on your quotes,"overdue accounts will be submitted to BayCorp"

[Hollands]

its a pain in the neck mate. I spoke to someone about this the other day who runs a large tree company in christchurch. He said they have a set procedure where afetr 7 days they get a friendly phone call, then after another 7 days they get a not so friendly phone call, then after that its a letter explaining that if it is not paid in 24 hours the bill will be passed to a collection agency who give him the entire amount and then charge a collection fee to the client. Its harsh, but i bet he gets paid. I think its also a bit easier to do this when you are a larger more 'faceless' company. They say that cashflow is one of the keys to surviving as a small business, we all know it only takes a couple of weeks to get behind.

[plippy]

payment on the day for me, i wont accept cheques as they have a tendancy to bounce, i arrange with the clients its cash or bank transfer and is stated very clearly on the quote and invoice, as long as they no where they stand from day one, i also have a debt company that chase up my owing customers and that is clearly stated on the quote and invoice as well, so theres no mis-understanding

 

even the lovely clients who make you tea and toast can be a slow payer,you have to be clear and precise with your clients, have the invoice with you on the day so theres none of that problem like customers say can you send me the bill, i say i'l go and get it from the truck.....clear and precise or you just get walked over

[Robert_S]

They cant pay for there weekly shop at tescos 7 days later, payed on completion same as plippy cash or bank transfer if they are not in i go back that evening to get payed.

[plippy]

They cant pay for there weekly shop at tescos 7 days later, payed on completion same as plippy cash or bank transfer if they are not in i go back that evening to get payed.

 

good lad, ive been walked over loads in the past by being to soft but yep i go back in the evening as well, obviously you have to be diplomatic and not come across as agressive but clear and straight to the point:thumbup1:

[Mark Bolam]

Ditto lads.

 

Worst payers for me have been bigger companies and very rich domestic clients.

[felixthelogchopper]

Ditto lads.

 

Worst payers for me have been bigger companies and very rich domestic clients.

 

That's how they stay rich, Mark

[Mark Bolam]

:thumbup1:Rich, but limping slightly....

[felixthelogchopper]

Mark, you haven't been knee-capping your late payers again, have you?