Large corporates killing small business

[GTIR]

I have been in business for nearly seven years. Apart from the general work, invoices, replying to emails, speaking to other drivers and customers, driving, a lot of the hassle is chasing invoices. Without doubt the worst offenders are large companies that have a faceless accounts payable department that employ people that get told to hold back invoices.

Over this time I have spent a lot of time speaking to accouts payable in various companies asking why they have not paid their bill. This gets repeated every few months with the same excuses, "Not received it", "Will be paid this week" (no, it won't), "No PO number/wrong PO number", "No invoice number", "same date as another invoice", "Our terms are 60 days" ("Our" terms!?).

I know cash flow is king. That's not the issue. The issue is the stress and hassle of chasing money that is owned to me for a service I provide.

SME's always pay on time and without hassle.

Large corporates never do. They don't give a toss.

I am on the verge of quitting it as it drives me nuts!

Rant over.

[GTIR]

No, because the profit margins are tight already.

Also, if one of my customers has a factoring company chasing them I will lose the account. I don't know details but I can assume that they will not be calling as your company.

[GTIR]

If anything it's got worse over the last two years.

Almost like now green shoots have appeared companies are starting to relax and look at ways of making money.

Very sad.

[GTIR]

I am chasing five invoices from the same company. Two they say they never received, even though they were emailed over to the same email, the fourth has the wrong PO number and the fifth has been paid but is 95% short!

It's about 7% of my annual turnover.

I have kicked up a fuss now and got the CEO of the parent company involved, the Head or Procurment and Financial Accounting Manager, and I have put their account on hold, which is why the CEO got involved.

It's the only way.

[GTIR]

Well the outstanding invoices are being paid Friday. Supposedly.
It's nice to see I'm not the only SME in the same boat. Maybe it's just the way it is.

[GTIR]

I don't think it's viable as profit margins are tight already

[GTIR]

wombleh said:

Why do they delay payment as much as possible? In the hope the supplier goes bust or forgets?

Seems like it's just going to confuse their internal accounting and ps off the suppliers

All large companies do it. 120 days is normal and it's all part of business but small companies are squeezed more by banks and usually don't have the cash flow needed for 120 days credit.

As they are small and don't have the buying power they're on zero credit or 30 days.