Slow payers

[restorer]

How do you deal with em'?...

 

[weldequip]

Let somebody else have em!
weldequip

 

[Welderpaul]

Make sure all your invoices, statements and letters chasing payment are sent promptly, and a record kept. Depends on how ruthless they are - a mention of solicitor or debt collector usually gets most outstanding payments in, but sometimes a very carefully worded threat that you will explain to their clients how bad they are at paying etc will get that cheque landed.

Or, just pull off site, explaining you will be back when they pay up. Give due notice that you are intending to withdraw labour/plant/materials until payment is received. That usually works.

Depends what game your in, i've been fairly ok up to press.

 

[Iain Westland]

dont let the car go

 

[shenion]

As of this year, all my invoices have "After 30 days there is a 10% month late fee" on the bottom.

Seems companies are starting 45 and 60-day payment schedules as standard. That is, unless there is any late fees stated on the invoice, then they are paid as received.

My best clients pay quick. Just had one: "Need changes done, here's a check to cover your costs, let me know the final amount and I'll cut a check the same day".

Love clients that appreciate the I, like most small biz owners have cash-flow issues.

 

[SC_BK]

I avoid them by asking for cash, if people moan and groan tell them thats how you keep your prices low

I did a job for a multi million £ international company a couple of weeks ago, got one of the managers to come down in his suit and give me the wonga

 

[hotrodder]

Really depends on game your in and type of client. Larger companies then you've got to play their game (what you consider late my be their normal payment schedules) so as said, clear payment terms from yourself at the start, on all invoices and follow up missed payments promptly.

Perpetual game players (unsigned/incorrectly made out cheques etc) are best pushed to any competitors or as i've done in the past, payment upfront or at least materials for future work- if they come back then fine

Things like car restoration (long, ongoing work with private client)... need something in place at the start, the estabilished restorers/custom car shops i deal with all require a deposit (materials etc) to work from. Invoices are sent regularly (weekly/monthly) so they're always working with the client 'in credit'. Client falls behind without notice and work stops, storage however then begins...

 

[reno]

As already mentioned it depends largely on the game your in.

Company I work for has an end of month + 30 days policy which is offered to account customers only otherwise its payment in advance.

To be honest the majority of our 'good' customers are the slower payers. If they get really bad (60+ days overdue) and we chased them constantly with calls emails and faxes we usually put them on stop. That tends to speed 'em up.

It rarely gets so bad that we threaten with a solicitors letter or cancel the account.

 

[restorer]

Thanks for the replies.

A one-man band, I restore mostly furniture and decorative metal objects. The trouble is this is a longstanding customer that is going through a tough time at the moment. If I get legal on him I'll no doubt get paid but it'll be over as far as any future business is concerned. I think he'll be too embarrassed to come back even if he manages to turn it around.

Normally I get paid when customers come to collect or they send a cheque the next day (I get about a 10/90 mix of private/trade custom).

The debt is mounting as I've been giving him credit on work done and it's obvious he's either not selling on, or is paying who he considers more pressing creditors first.

It's true that my most reliable customers have come expect a certain amount of largess when it comes to settling invoices but I'm going to have to get tough on that too. I think I'll add a 30 day condition to the bottom of my invoices.

I genuinely feel sorry for this guy but it's been five months and I can't afford to let it ride. I have said he can pay in installments but he can't even manage that. I give him two weeks and then that's it.

In thirty years of trading it's only the second time I have had to sue so I guess I've been lucky in that respect.

@ SC_BK, big companies are the worst. As Weldequip says I Leave them to someone else.

 

[Robotstar5]

A friend of mine got as far as unrolling his sleeping bag in the reception area before they sent some one down from accounts with his cheque!

 

[mike os]

after 5 months irregardless of the customer it is unreasonable to expect you not to be chasing it. If they take issue then time to let them go, IMO "good" customers are those that pay you for what you have done.

 

[Luke]

I genuinely feel sorry for this guy but it's been five months and I can't afford to let it ride. I have said he can pay in installments but he can't even manage that. I give him two weeks and then that's it.

Obviously I know nothing about the rest of your customer base, but have you considered that if you continue being nice, and he goes down, he'll take you with him?

Can you afford to write off what he owes you?

 

[Iain Westland]

if you fire him off how many other customers will he take? less than 1 loose him with legal preasure, more than 1 loose him gently but firmly.

wonder if this version will go missing

 

[Timmer]

I told my "rich" late paying (in excess of one year) client that the U.S. revenue collector's wanted a list of everyone that owed me money because I was being audited. I had a check by the end of the week.

Cheers
Timmer

 

[pedrobedro]

Send big Mikey round with the pliers to play "this little piggy"