Late Payments on Invoicing
Discussion
I completed some work for a company back in September of last year and sent them an invoice on 30 day terms.
The invoice was due on the 28th of October. I understand I can charge them at 8.5% per annum for late payment however would you consider also putting an charge of £25 on each invoice for admin?
Seems normal practice to me when you deal with larger firms.
For the record this is several thousand pounds.
Thanks.
Rick.
The invoice was due on the 28th of October. I understand I can charge them at 8.5% per annum for late payment however would you consider also putting an charge of £25 on each invoice for admin?
Seems normal practice to me when you deal with larger firms.
For the record this is several thousand pounds.
Thanks.
Rick.
yes plenty of reminders at least twice a month and several times just after the due date.
Just think that a fine of £65 doesn't cut it when they are at a tradeshow in Amsterdam, I would have gone to Amsterdam to advance my company but can't when companies don't pay on time.
I was thinking of the 8.5% charge interest is about £65 and then charging them £25 admin charge on top?
Just think that a fine of £65 doesn't cut it when they are at a tradeshow in Amsterdam, I would have gone to Amsterdam to advance my company but can't when companies don't pay on time.
I was thinking of the 8.5% charge interest is about £65 and then charging them £25 admin charge on top?
The fixed charge on top of the interest that you're allowed to charge is given here:
https://www.gov.uk/late-commercial-payments-intere...
It's all under the late payment of commercial debt. I put a notice at the bottom of my invoices saying I reserve the right to charge it under the act blah blah (copied it from the internet somewhere). I've never used it, but have threatened to do so - plenty of suppliers do now charge late fees with little effect on their business relationship.
Good luck - so annoying when you have to chase.
https://www.gov.uk/late-commercial-payments-intere...
It's all under the late payment of commercial debt. I put a notice at the bottom of my invoices saying I reserve the right to charge it under the act blah blah (copied it from the internet somewhere). I've never used it, but have threatened to do so - plenty of suppliers do now charge late fees with little effect on their business relationship.
Good luck - so annoying when you have to chase.
why not switch this around - charge the higher amount, but give a discount if paid within x days...
so, where you might have a bill of £90 and a penalty of £10 if not paid on time...
you could bill £100 with a 10% discount if paid in x days
same set of maths - but presented very differently to the client who has an incentive to pay on time and sees it as a bonus...
instead of your threatening / bluffing / chasing, get them to want to pay you sooner...
so, where you might have a bill of £90 and a penalty of £10 if not paid on time...
you could bill £100 with a 10% discount if paid in x days
same set of maths - but presented very differently to the client who has an incentive to pay on time and sees it as a bonus...
instead of your threatening / bluffing / chasing, get them to want to pay you sooner...
Simpo Two said:
Too late now. Plus, when quoting yuo can bet clients will only see the first, artifcially high, price not the 'discounted' one.
We do it and it works very well - yes, some clients will always take ages to pay, but I have clients who are very keen to get their discount and make an effort to pay within the discount period...Simpo Two said:
All fine in theory but (1) is it in your T&Cs? - [you can't just make stuff up willy-nilly (2) if you add it will they pay it? If they don't will you sue them for the extras?
Have yuo sent any reminders/chased up at all?
No, but if the charges are implied by statute he's not making them up...Have yuo sent any reminders/chased up at all?
Yes it does - although I provide this
Please note that we reserve the right to claim for Statutory Compensation and Interest if you pay outside of our terms. If payment will be late please help us by letting us know!
I've invoiced it a couple of times and no bugger has ever paid it. I'm told that the Small Claims frown on action to collect just this so have had to swallow it, which leaves a bitter taste on top of the bitter taste from clients who seem to think that paying on time is optional.
Please note that we reserve the right to claim for Statutory Compensation and Interest if you pay outside of our terms. If payment will be late please help us by letting us know!
I've invoiced it a couple of times and no bugger has ever paid it. I'm told that the Small Claims frown on action to collect just this so have had to swallow it, which leaves a bitter taste on top of the bitter taste from clients who seem to think that paying on time is optional.
I love all the advice 
You want to be paid . Stop emailing and pick up the phone. Politely ask why you have not been paid. Most likely they will say oh well, we will pay on date x. Probably a lie but write it down and make sure you get a commitment. Then say ok I'm following this up in an email and if we dont get this resolved it's county court. Then fill in the documents online, it's very easy, pay your money add to claim with interest at 8.5%', I recall it's 60 or 80 notes in your admin costs. Forget this t&c advice. You can charge it in these situations.
Highly likely you will get paid. Keep emailing and you won't. Some pricks only understand one thing, aggression and action.
Do not let them fob you off and make sure you follow through with the threat.
So many people advise...call a lawyer, do this. No, fill in a small claims case and watch the cash arrive. Very very few want a ccj and the money online service is very effective.
You want to be paid . Stop emailing and pick up the phone. Politely ask why you have not been paid. Most likely they will say oh well, we will pay on date x. Probably a lie but write it down and make sure you get a commitment. Then say ok I'm following this up in an email and if we dont get this resolved it's county court. Then fill in the documents online, it's very easy, pay your money add to claim with interest at 8.5%', I recall it's 60 or 80 notes in your admin costs. Forget this t&c advice. You can charge it in these situations.
Highly likely you will get paid. Keep emailing and you won't. Some pricks only understand one thing, aggression and action.
Do not let them fob you off and make sure you follow through with the threat.
So many people advise...call a lawyer, do this. No, fill in a small claims case and watch the cash arrive. Very very few want a ccj and the money online service is very effective.
Simpo Two said:
johnfm said:
No, but if the charges are implied by statute he's not making them up...
Does the law say you can add £25 per invoice copy? I don't know. The bumph on the Small Claims website will tell you what you can claim and what you can't.£70 for £1000 to £9,999
In addition to the 8.5% penalty interest.
johnfm said:
Simpo Two said:
johnfm said:
No, but if the charges are implied by statute he's not making them up...
Does the law say you can add £25 per invoice copy? I don't know. The bumph on the Small Claims website will tell you what you can claim and what you can't.£70 for £1000 to £9,999
In addition to the 8.5% penalty interest.
www.payontime.co.uk has more info on the statutory late payment legislation. There's no need to put anything in your T&C's, nor for them to agree with it or not, it's law.
sgrimshaw said:
Best advice given here is to call and ask them why payment has not been made.
If you don't get a satisfactory outcome from the call, then proceed to the claim route without any further delay.
One tactic I have heard of is to fill in the forms, take a photo and then email them the screenshot saying they have 48 hours, or it will be submitted.If you don't get a satisfactory outcome from the call, then proceed to the claim route without any further delay.
Bit aggressive, but it can save the submission and paperwork whilst achieving the outcome.
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