Payment Terms

[Mark Bolam]

I'm seriously thinking of not accepting cheques any more.

 

I've had one or two bounce, and it's a fanny-on having to get to the bank to pay them in when you're busy, then they sit on them for about a week.

 

I may state from the off that it's cash (with receipt) or BACS only.

 

I will still accept crates of beer and porn, mind.

[Taupotreeman]

That's one of the worst things about bad payers. Getting your knickers in a twist and then spending all day in a bad mood and fretting over how to deal with the bad debt. I've been told by some people that I shouldn't worry about it and that the debtor will pay eventually but that isn't the point. Job has been done, payment required. NOW. Please!

[Stephen Blair]

Mark i used to be terrified of the CASH thing, but now its just the best way, most of my customers would rather pay me straight away and then they know how much they have left. I can also keep the costs down because when i get paid i can then go and do what i need to do with the money, i was always chasing my tale and being stressed with peolpe late paying or notbothering to post a cheque, mainly because i was in huge overdraft paying my weekly bills. I even have my tax money saved up for next year, and its always on the 30th of january, when times are usually really slow. it takes a lot of presure off.

[Stephen Blair]

That's one of the worst things about bad payers. Getting your knickers in a twist and then spending all day in a bad mood and fretting over how to deal with the bad debt. I've been told by some people that I shouldn't worry about it and that the debtor will pay eventually but that isn't the point. Job has been done, payment required. NOW. Please!

 

The thing is mate, the type of person who isnt going to pay you quickly has chosen you as their contractor because he will be able to tell you wont push it, it will be the guy that wont use a guy like me because i would of said from the start, wonga upfront and he will of thought, no chance i will get another guy. YOU!! it is not bad luck or chance that you are getting these customers, they will owe the paper boy money, the window cleaner money, pay all their bills on the red letter. They dont get stressed like you, they think it is the norm.

[Taupotreeman]

Stephen, interested to know if you tell all your customers, on acceptance of the job, that your terms are strictly cash etc and have you had people opt out of the job because they don't want to deal with cash. Also, do you get many that accept the job under those terms and then start with the excuses thing once it comes time to pay or have you weedled out all these eejits and now have a reliable customer base that you can trust? I like the idea though and I have to say that I'm not usually that worried about not getting repeat work because I have had to chase money. If they much around with paying first time then they are likely to do the same next time and I'd prefer to do without the hassle because of the stress.

[Mark Bolam]

Bang on again Stevie.

 

I am beginning to model my business plan on yours mate!

 

Actually, I am in danger of turning into a slightly shorter, but stronger and better looking version of you!!!!

[Stephen Blair]

If it is an elderly person then i will take a cheque off them on completion, i dont want them worrying about keeping money in the house. Tbh the point where i mention the payment i have come to the conclusion they are good peolpe. I usually have them whittled down before i even speak to them. Right now i am owed some money from 2 customers, 1 has just done a huge charity event and i told them to pay me when convenient and another got robbed and needed the work done asap so i said they can pay me later BUT the diference is each of these customers said to me, ' i will get you to do the job at the end of the month when i have the money' i wouldnt hear of it and did the jobs and they have kept in touch via text to make sure i am ok with it and specified what day they will pay me and they are coming to me. I think in the last few years i have slipped up and had a wee bit of hassle BUT now i know that it was me who didnt have things in place and let them through my net lol. I am still bad at not complaining though and overpaying for things i get done from other tradesman, i need to work on that ha

Edited September 8, 2010 by Stephen Blair

[Mesterh]

I just couldn't be doing with the hassle you lot seem to have with regular none/bad payers!

 

The amount of trouble I get doesn't even bear thinking about. I,d never ask for cash payment or for it up front but then if I did get cash flow from constant late/non payers then I would prob change my mind.

 

I like cheques, everything in and out of the same account for me.

[Stephen Blair]

 

I like cheques, everything in and out of the same account for me.

 

i used to be the same, cheques in and out and pay as much as possibloe with switch, it did make my books easier to do BUT i could never get parked at the bank, when they did go in you have to wait 3-5 days, the bank charges you to put it in, take it out etc etc.

[dandkgroundcare]

i have a certain fast food contractor owes me money when wife/debt collector rang again chasing payment which was supposed to be sent 3 days ago she heard them chatting in background "do i write a cheque or get details and bacs transfer it" i can feel a load of waste getting returned to owner by the weekend ready for monday out side thier front door