Late Paying Customers
Discussion
http://www.letterbeforeaction.co.uk/ discounts to PH'ers and or account work. For the avoidance of doubt this is my company, so a plug.
There was another thread about this, there is a legal support to getting paid, otherwise you can add charges. Of course if they won't pay the first invoice, then another one with penalty charges probably won't get paid either...
We have explicit payment terms on our invoices, a quick phone call or email to offer some help (and I do mean help!) usually gets payment. How about offering to split up the invoice into convenient payable amounts?
Actually thinking about it, check (if possible) they're doing well enough to pay... It may be that they aren't able to pay up..
How long is it since you gave them an invoice?
see here for blurb : http://www.payontime.co.uk/legislation/late_paymen...
We have explicit payment terms on our invoices, a quick phone call or email to offer some help (and I do mean help!) usually gets payment. How about offering to split up the invoice into convenient payable amounts?
Actually thinking about it, check (if possible) they're doing well enough to pay... It may be that they aren't able to pay up..
How long is it since you gave them an invoice?
see here for blurb : http://www.payontime.co.uk/legislation/late_paymen...
ohhh they're making enough to pay me.
been promised payment by chaps to clear today so gonna check the bank later.
its a charity
don't normally do invoice's its normally payment upfront, but thought id make an exception for these guys... ( we i wanted the work, and theres LOTs of it! )
i distribute the charity clothes collection bags for them, ive had reports on how every days collection has gone so far, i.e " we've had over a tonne and a half today mate.. fantastic"
if payment doesn't clear, i don't want to burn my bridges with them, as the contract is worth nearly £100,000 p/a, which is the vast bulk of my turnover.
been promised payment by chaps to clear today so gonna check the bank later.
its a charity
don't normally do invoice's its normally payment upfront, but thought id make an exception for these guys... ( we i wanted the work, and theres LOTs of it! )
i distribute the charity clothes collection bags for them, ive had reports on how every days collection has gone so far, i.e " we've had over a tonne and a half today mate.. fantastic"
if payment doesn't clear, i don't want to burn my bridges with them, as the contract is worth nearly £100,000 p/a, which is the vast bulk of my turnover.
Our procedure, for debts from anywhere of £1000 to £200K a month is:
call from accounts when account is 7 days overdue
call from sales rep when account is 14 days overdue - account on stop
letter from solicitors (Lovetts - very good and costs are very, very reasonable) follows at 21 days I think.
Normally we get paid within the time frame above without court action needed. In truth, I can't remember the last time we took someone to court.
call from accounts when account is 7 days overdue
call from sales rep when account is 14 days overdue - account on stop
letter from solicitors (Lovetts - very good and costs are very, very reasonable) follows at 21 days I think.
Normally we get paid within the time frame above without court action needed. In truth, I can't remember the last time we took someone to court.
Edited by CR0X on Wednesday 13th August 08:27
Dave_ST220 said:
We just quote "Late Payment of Commercial Debts (Interest) Act 1998" on anything over 30 days
Same here, then follow it up with these guys if that doesn't do the trick. http://www.thomas-higgins.co.uk/index.htmlThe problem with T Higgins is everybody knows they send out letters for £2, ie the effect is not what it use to be. In addition there are no phonecalls included to either creditor or debtor, no bespoke letter produced dependant on the exact debt circumstances, and no free follow up letters if required.
You get what you pay for.
You get what you pay for.
timskipper said:
Dave_ST220 said:
We just quote "Late Payment of Commercial Debts (Interest) Act 1998" on anything over 30 days
Same here, then follow it up with these guys if that doesn't do the trick. http://www.thomas-higgins.co.uk/index.htmlBest thing is to arrange a meeting with a top bod. Discuss the issue and offer a 2% early settlement fee for future invoices. Make sure you build this in, but it will give them an incentive to put you at the top of their creditor list.
Going in all guns blazing is fine for a small customer, or if you have lots and lots! But the chap has just stated that this is a majority of his income. £2 letters, demanding money - will make you end up bankrupt in a short time!
[quote=SystemParanoia
its a charity
[/quote]
If they are a registered charity, i.e, they have a charity number, then get in touch with the Charity Commission first. They have the power to suspend a charity's activities if it deems their actions to be contrary to the charity charter, non payment of debts being one such example.
its a charity
[/quote]
If they are a registered charity, i.e, they have a charity number, then get in touch with the Charity Commission first. They have the power to suspend a charity's activities if it deems their actions to be contrary to the charity charter, non payment of debts being one such example.
jamesuk28 said:
The problem with T Higgins is everybody knows they send out letters for £2, ie the effect is not what it use to be. In addition there are no phonecalls included to either creditor or debtor, no bespoke letter produced dependant on the exact debt circumstances, and no free follow up letters if required.
You get what you pay for.
I'm sure "everybody" doesn't. And the net result of a letter, be it £2 or £10 is a court summons if the debtor doesn't cough.You get what you pay for.
Other more expensive but not necessarily any better services are available
timskipper said:
jamesuk28 said:
The problem with T Higgins is everybody knows they send out letters for £2, ie the effect is not what it use to be. In addition there are no phonecalls included to either creditor or debtor, no bespoke letter produced dependant on the exact debt circumstances, and no free follow up letters if required.
You get what you pay for.
I'm sure "everybody" doesn't. And the net result of a letter, be it £2 or £10 is a court summons if the debtor doesn't cough.You get what you pay for.
Other more expensive but not necessarily any better services are available
2. Compare the services
jamesuk28 said:
timskipper said:
jamesuk28 said:
The problem with T Higgins is everybody knows they send out letters for £2, ie the effect is not what it use to be. In addition there are no phonecalls included to either creditor or debtor, no bespoke letter produced dependant on the exact debt circumstances, and no free follow up letters if required.
You get what you pay for.
I'm sure "everybody" doesn't. And the net result of a letter, be it £2 or £10 is a court summons if the debtor doesn't cough.You get what you pay for.
Other more expensive but not necessarily any better services are available
2. Compare the services
TH have - for us - returned a 100% success rate. For £2 a pop. I struggle to see how your "better" service is better if it gets the exact same response but is more expensive.
I'll use you next time, if it makes you feel any better.
We use http://www.eulerhermes.co.uk/en/collections/collec... at around £3.00 per letter, but we have to fill them out. The £2.00 option you lot are arguing about seems like a good deal to me! If the content of the letter is exactly the same I fail to see why you would pay any more than you need to?
timskipper said:
jamesuk28 said:
timskipper said:
jamesuk28 said:
The problem with T Higgins is everybody knows they send out letters for £2, ie the effect is not what it use to be. In addition there are no phonecalls included to either creditor or debtor, no bespoke letter produced dependant on the exact debt circumstances, and no free follow up letters if required.
You get what you pay for.
I'm sure "everybody" doesn't. And the net result of a letter, be it £2 or £10 is a court summons if the debtor doesn't cough.You get what you pay for.
Other more expensive but not necessarily any better services are available
2. Compare the services
TH have - for us - returned a 100% success rate. For £2 a pop. I struggle to see how your "better" service is better if it gets the exact same response but is more expensive.
I'll use you next time, if it makes you feel any better.
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