Return 'payment mistake' or set it against other invoices?
Discussion
After 30+ years in 'proper' employment, I've switched to contracting last December in my 'twilight years'. A bit if christening-by-fire, but most things have worked out - but here's the first challenge I've had to throw open to a wider audience.
I have done contract work for a company in January, February, March and April. I invoiced at the end of each month on 30 day terms, and so at this time only the April invoice is outstanding at the end of May. But they have always been late payers, and I've only just been paid for March (due at the end of April).
Only they've mistakenly double-paid it! They have asked me to transfer the money back as it was a banking error on their part...and clearly it was. But the double payment for March is less than the (outstanding 'till end May) April invoice. One part of me says I should repay it - it was a mistake, I wasn't expecting to get April's paid until the end of May, and I want to keep on good terms for any future work. The other part of me says they've always been late to pay; this is the end of the contract and so I don't have any more 'leverage' if they choose to pay April's late (or not at all!); and why should I increase my exposure to them. Then I'm back round the loop thinking it was a mistake, and if the hadn't double-paid I wouldn't be having to think this through so giving it back just puts us both in the position we 'should' have been in...
I did email back immediately (and very pleasantly) saying it would be easier all round for me to keep this as a part payment against the April invoice due at the end of the month - but that went down like a lead balloon.
Anyway, got to get back to them with 'transfer details' ASAP, so a pretty small window for 'discussion' if I choose to hold on to it.
I have done contract work for a company in January, February, March and April. I invoiced at the end of each month on 30 day terms, and so at this time only the April invoice is outstanding at the end of May. But they have always been late payers, and I've only just been paid for March (due at the end of April).
Only they've mistakenly double-paid it! They have asked me to transfer the money back as it was a banking error on their part...and clearly it was. But the double payment for March is less than the (outstanding 'till end May) April invoice. One part of me says I should repay it - it was a mistake, I wasn't expecting to get April's paid until the end of May, and I want to keep on good terms for any future work. The other part of me says they've always been late to pay; this is the end of the contract and so I don't have any more 'leverage' if they choose to pay April's late (or not at all!); and why should I increase my exposure to them. Then I'm back round the loop thinking it was a mistake, and if the hadn't double-paid I wouldn't be having to think this through so giving it back just puts us both in the position we 'should' have been in...
I did email back immediately (and very pleasantly) saying it would be easier all round for me to keep this as a part payment against the April invoice due at the end of the month - but that went down like a lead balloon.
Anyway, got to get back to them with 'transfer details' ASAP, so a pretty small window for 'discussion' if I choose to hold on to it.
Depends if you want to do more work with them in future or if you are all done and dusted with them already
On the basis that you want to work with them some more, then pay it back to them promptly and lay it on reasonably thickly about how quickly you have done it and how important you think keeping the money side of the relationship in order is... hint hint your record of paying on time Mr Customer isn't quite as good as it could be is it? Please remember just how quickly I have dealt with this when my next invoices fall due.... etc. etc.
On the basis that you want to work with them some more, then pay it back to them promptly and lay it on reasonably thickly about how quickly you have done it and how important you think keeping the money side of the relationship in order is... hint hint your record of paying on time Mr Customer isn't quite as good as it could be is it? Please remember just how quickly I have dealt with this when my next invoices fall due.... etc. etc.
The entrails don't look good.
They're slow payers, and need the money back; surely one month's money to a contractor can't really be significant. (tidy bookkeeping aside),
Refund the money that's owed to you and it will come come back to you later ?
At best, someone has cocked up and is trying to save their backside.
At worst, their cash flow problems could become your debtor problems.
Are they going to start paying you on time?
Talk to your connections in the firm, any information about their state of trade, could save you a bad debt, but if you keep the money, it will be smaller.
Your call.
They're slow payers, and need the money back; surely one month's money to a contractor can't really be significant. (tidy bookkeeping aside),
Refund the money that's owed to you and it will come come back to you later ?
At best, someone has cocked up and is trying to save their backside.
At worst, their cash flow problems could become your debtor problems.
Are they going to start paying you on time?
Talk to your connections in the firm, any information about their state of trade, could save you a bad debt, but if you keep the money, it will be smaller.
Your call.
If they are late payers, and have accidental paid twice, but that's still less than the amount outstanding past current terms, then keep it.
They're chancing their arm asking for it back when they owe it!
But as others have said, this should be a red flag to their current financial state, I'd consider that carefully before doing further work for them.
They're chancing their arm asking for it back when they owe it!
But as others have said, this should be a red flag to their current financial state, I'd consider that carefully before doing further work for them.
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