Commercial vs domestic

[County 764]

What about stating payment terms in bold text on invoices, and a late fee. Interest added after say the 30 day payment period.

 

Does anyone find this speeds things up?

[Ian C]

Pretty normal amount really im never owed less than 5k at a any one time, not right but thats life.

 

Thought you only ever did domestic dean?

 

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[Philip Anderson]

We are mostly commercial, the LA's and FC pay pretty fast so no problems there apart from the occasional hiccup. The worst are the big FM companies, many of whom take 90 days as standard, the worst I have had rhymed with dlengale who took 7 months to pay me £26k.

 

Late payment in the commercial game is pretty standard, and if you want the work you just have to put up with it. The thing to avoid is the "Marks and Spencer" trap, this is where one company provided most of your work, as M&S do with many of their suppliers. I have seen someone pushed right to the brink of bankruptcy that way, once they owe you a lot of money they can turn the screws on your pricing and you have no choice as you know that they can take you under if they want to.

 

There is also the risk that one of these big companied goes under whilst owing you a lot, like Connaught a few years back. Again its wise not to get too far in with any one company, as you can be sure if they do go under you will be the last to know along with their staff.

I agree I was one of those who got taken by Connaught,for 2k I got £8 back the other week !! After 3 years KPMG partners got £700 an hour even junior clerk was charged at £200 per who were the crooks ? Answer both of them!!

Most commercial clients I have are ok if you know you they are going to take time to pay add it on at the pricing stage .

[Dean Lofthouse]

Yep seems about right!

What software is that? Looks simple enough even for me...

 

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Here you go sloth

 

Invoice on the Go with Invoice2go | Free Trial - Invoice2go

[Dean Lofthouse]

Pretty normal amount really im never owed less than 5k at a any one time, not right but thats life.

 

Thought you only ever did domestic dean?

 

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90% domestic and I don't do construction firms either

[gensetsteve]

We had this problem in 2009 no credit in our direction and large companies taking the mick. Answer cancel all accounts and only leave the ones open to regular spenders that paid on time. The customer is lucky to get 30 days credit. if they go over we can either close the account and they pay pro forma or credit card or we can offer a finance agreement by a 3rd party where we get commission. I doubt I will make many friends in business but then I am not in business to make friends.

[bumble B]

What about stating payment terms in bold text on invoices, and a late fee. Interest added after say the 30 day payment period.

 

Does anyone find this speeds things up?

 

I send a page of T's and C's along with a copy of insurance with my quotes. In 3 years of working for myself 2 people have asked questions relating to them the rest just look at the price and hardly any check the spec'.

[TIMON]

From what I've read on this thread I don't fancy getting involved in commercial stuff... The cost of advertising is greater but it's rare that you get bumped doing domestic stuff. Fair play to you guys that navigate those waters .....

[NFG]

Hi Dean,

 

Cut the credit terms of the bad payers & those who consistently fail to pay on time, move to pro-forma account demanding payment in advance.

 

A well worded polite letter advising of late payment & outlining intentions usually helps

 

 

N

[Andrew Gale]

One of my first ever domestic customers mucked me about for months on a late payment; cheques being sent then cancelled, went round his house to collect and he wasn't in, claimed his car had been broken into and didn't have a cheque book.

 

Finally got payment from his wife out of her own account, apparently this was his usual practice and he tried to blag not paying for anything

 

I should've walked away when he first told me his name, Mr Mean....... I kid you not:lol: