Late payments?

[Billy]

a wait is acceptable if its cash payment otherwise it needs to be dealt with in asensible preferably pre arranged time.

[Stereo]

Business is tough these days. Cash-flow is a problem which affects many companies. However the first rule of employing is that you pay your staff first. That's the way we work anyway.

[Ian Flatters]

I can see your point but if he takes on lets say 10 jobs over 2 weeks and non of them pay immediately or within his 28 days of terms this can lead to a large cash flow failure. I don't agree with people dissing whoever you subby for because he hasn't paid you at the end of the day. Your a business and he has 28 days to pay you. Maybe he should of made clear that cash-flow has been an issue due to late payments. This way the ball is in your court to decide if your happy to work and get paid later or not work and find work somewhere else.

 

Its become more frequent in my experience of companies, commercial and private taking forever to pay. But when they do your cheque should be up there to be cleared and you get a good payout from it.

 

On of my arb buddies recently has around 10k of outstanding payments from around 20 clients i feel for him as his available funds i.e to pay for subbies, fuel etc is taking a hit. But he told me and im ok just to wait another week until they pay, not ideal but thats business.

 

Hope this gets sorted quickly for you but hey got to roll with the punches no one said being self employed was easy.

[Kev Stephenson]

I personally wouldn't take on a job that risked bankrupting me, I believe you should always have the funds available to pay out all you owe, especially to staff. This might mean that I will never be the biggest arb company in the world but I definately won't be a bust one and I will never be in debt to anyone.

 

If you are using the same person for a couple of weeks straight and you agree in advance that payment will be on completion then it should be, if a job is bigger than this why not ask the customer for staged payments to cover staff wages? Builders do, why can't arbs?

 

Companies biting off more than they can chew is the reason so many go bust, I am sure all companies have had the odd bad/non payer but that is lost from profit, not wages or expenses

[skyhuck]

I can see your point but if he takes on lets say 10 jobs over 2 weeks and non of them pay immediately or within his 28 days of terms this can lead to a large cash flow failure. I don't agree with people dissing whoever you subby for because he hasn't paid you at the end of the day. Your a business and he has 28 days to pay you. Maybe he should of made clear that cash-flow has been an issue due to late payments. This way the ball is in your court to decide if your happy to work and get paid later or not work and find work somewhere else.

 

Its become more frequent in my experience of companies, commercial and private taking forever to pay. But when they do your cheque should be up there to be cleared and you get a good payout from it.

 

On of my arb buddies recently has around 10k of outstanding payments from around 20 clients i feel for him as his available funds i.e to pay for subbies, fuel etc is taking a hit. But he told me and I'm OK just to wait another week until they pay, not ideal but thats business.

 

Hope this gets sorted quickly for you but hey got to roll with the punches no one said being self employed was easy.

 

Thats nonsense, Tesco is a business, but they expect my Mrs to pay before she leaves the store.

 

If people need credit they should go ask the bank. it is just plain wrong to expect subbies to finance your Co by taking late payment.

 

What happens if the customers don't pay??? you still need to pay the staff regardless!!

 

If the Co does not have the funds or bank credit arranged to cover the cost of doing the job, they should not take the job on!!!!!!!!

[Ian Flatters]

Thats nonsense, Tesco is a business, but they expect my Mrs to pay before she leaves the store.

 

If people need credit they should go ask the bank. it is just plain wrong to expect subbies to finance your Co by taking late payment.

 

What happens if the customers don't pay??? you still need to pay the staff regardless!!

 

If the Co does not have the funds or bank credit arranged to cover the cost of doing the job, they should not take the job on!!!!!!!!

 

I don't think its nonsense whatsoever. Just explaining the other side of what can and does go on. What if all your customers don't pay? You go bust and no one gets paid. You'd be foolish to take out loans to pay staff as it puts a heavier financial burden on you and your business. I haven't once said that subbies should finance your business you have assumed that's what was said and have read it wrong. I guess you haven't had to take anyone to court for failing to pay?????? 28 days is the deemed by the financial ombudsman as an 'reasonable' amount of time to pay your debts. I found this out 9 months ago when i finally completed legal proceedings with a landscape company who hired me and Frosty when he did his 1st job for me.

 

Tesco's is a rubbish in your face example as retail goods/ consumable goods (inc petrol) come under different legislation.

 

Just making the point that as a subby you ARE a Business and to believe that you are immune from being effected by others cash flow is silly but you still have the same invoice/pay date problems that other larger companies have.

 

Just my pennies worth from what i have seen/ been on the receiving end of.

 

Now i have no problem with a new business paying me late/ half after work completed then half after they are paid. We all have to start somewhere and why should they not take on work and pass up money whilst starting a business. Yes they shouldn't take on massive sites which may have a months work then another month before getting paid but larger jobs i.e a few days work they shouldn't be expected to pass off to other companies???? Surely they would all be out of business quickly.

 

Or am i missing your point and you are going to rip this all apart.

[Kev Stephenson]

I finrmly beleive you should learn to walk before you run. Start small and build up a slush fund then take on bigger jobs.

 

There seem to be too many brand new companies that are getting a grant or truck, chipper, etc on the tick knowing they need to turn over loads of money each week just to pay for the finance. One bad payer for one of these companies and the do do hits the fan, if they have used a subbie are they going to pay the subbie or the finance company first?

 

What happened to the second hand saw and trimmers and carting away on a trailer to build up funds for a truck then eventually a chipper, etc

[Stephen Blair]

Tesco is the perfect example imo, it must be 1 of the biggest companies in the uk. So there terms and conditions must be the bench mark.

If you are willing to wait for payment, you will wait.

[Ian Flatters]

I finrmly beleive you should learn to walk before you run. Start small and build up a slush fund then take on bigger jobs.

 

There seem to be too many brand new companies that are getting a grant or truck, chipper, etc on the tick knowing they need to turn over loads of money each week just to pay for the finance. One bad payer for one of these companies and the do do hits the fan, if they have used a subbie are they going to pay the subbie or the finance company first?

 

What happened to the second hand saw and trimmers and carting away on a trailer to build up funds for a truck then eventually a chipper, etc

 

I still do.

[skyhuck]

I don't think its nonsense whatsoever. Just explaining the other side of what can and does go on. What if all your customers don't pay? You go bust and no one gets paid. You'd be foolish to take out loans to pay staff as it puts a heavier financial burden on you and your business. I haven't once said that subbies should finance your business you have assumed that's what was said and have read it wrong. I guess you haven't had to take anyone to court for failing to pay?????? 28 days is the deemed by the financial ombudsman as an 'reasonable' amount of time to pay your debts. I found this out 9 months ago when i finally completed legal proceedings with a landscape company who hired me and Frosty when he did his 1st job for me.

 

Tesco's is a rubbish in your face example as retail goods/ consumable goods (inc petrol) come under different legislation.

 

Just making the point that as a subby you ARE a Business and to believe that you are immune from being effected by others cash flow is silly but you still have the same invoice/pay date problems that other larger companies have.

 

Just my pennies worth from what i have seen/ been on the receiving end of.

 

Now i have no problem with a new business paying me late/ half after work completed then half after they are paid. We all have to start somewhere and why should they not take on work and pass up money whilst starting a business. Yes they shouldn't take on massive sites which may have a months work then another month before getting paid but larger jobs i.e a few days work they shouldn't be expected to pass off to other companies???? Surely they would all be out of business quickly.

 

Or am i missing your point and you are going to rip this all apart.

 

Thats what I can't stand!!!!

 

And that why I don't do business in the way you describe!!!!!

 

If some one does work for me, they get paid, simple.

 

I cannot go bust, I could stop working and close my business, but I would never not pay my way.

 

As far as I'm concerned my contract is my client, whether I get paid by them is between me and them, its not anything to do with subies, their contract is with me, no one else, so I pay them straight away.

 

I did a site clearance job where the builder went bust, my subbies got paid (at the end of the week when the job was done) even Stumpbusters got paid, because they were working for me. But I got nothing, that job cost me time and money, but thats business.

 

Subbies make me money, I get more out of every job than they do, so why should they subsidies my business by taking late payment???