How long is reasonable to wait for payment?
Discussion
Just wondering really, how long is reasonable after issuing an invoice, to wait for payment before chasing up?
Im a domestic electrician, and generally people who want to pay by Bacs, pay within a day or two of receiving invoice.
But the last month, I've had two customers, I've not heard back from since the invoice.
my invoice does not specify a payment period, so i should probably add this (i prefer to keep things informal)
Im sure they will pay in the end, one is a solicitor, the other a pilot, so sure they will pay in the end. Its just the fact that a couple of grand
awaiting is not good for cash-flow for a small 1 man business.
So how long is it best to wait, before sending another invoice or a phone call?
would i be best to wait 30 days? or would 14 days be classed as sufficient.
Cheers for any advice.
Im a domestic electrician, and generally people who want to pay by Bacs, pay within a day or two of receiving invoice.
But the last month, I've had two customers, I've not heard back from since the invoice.
my invoice does not specify a payment period, so i should probably add this (i prefer to keep things informal)
Im sure they will pay in the end, one is a solicitor, the other a pilot, so sure they will pay in the end. Its just the fact that a couple of grand
awaiting is not good for cash-flow for a small 1 man business.
So how long is it best to wait, before sending another invoice or a phone call?
would i be best to wait 30 days? or would 14 days be classed as sufficient.
Cheers for any advice.
No shame at all in asking politely for payment. You are correct that you invoice should state your expected payment terms (and quotations etc)
If I send an invoice to a new customer I always ring to ensure they've got it & are happy with it.
Often in this life people do not pay unless persuaded. I could write a book on my various methods!
If I send an invoice to a new customer I always ring to ensure they've got it & are happy with it.
Often in this life people do not pay unless persuaded. I could write a book on my various methods!
PugwasHDJ80 said:
The solicitor will the slowest paying customer you've ever had
No idea why but they all seem to be dreadfully slow at personal admin
It's the only job in the world that the slower you work the more you get paid. That tactic spills over to their personal life No idea why but they all seem to be dreadfully slow at personal admin
disclaimer: no, not really, only said in whimsy
2 sMoKiN bArReLs said:
It's the only job in the world that the slower you work the more you get paid.
I think the contractors working on a railway embankment near here operate on the same basis. Five months on site but only one month of actually doing anything.R1 Indy said:
last month, I've had two customers, I've not heard back from since the invoice.
my invoice does not specify a payment period, so i should probably add this (i prefer to keep things informal)
So how long is it best to wait, before sending another invoice or a phone call?
would i be best to wait 30 days? or would 14 days be classed as sufficient.
Often the wealthiest people can be the meanest - witness the pilot who posted recently because he wanted some free photos of his Aston - but rather than offering even travel expenses, suggested that someone might like to 'enhance their portfolio'. And he wanted someone with 'relevant experience' too, not a mug amateur.my invoice does not specify a payment period, so i should probably add this (i prefer to keep things informal)
So how long is it best to wait, before sending another invoice or a phone call?
would i be best to wait 30 days? or would 14 days be classed as sufficient.
Back to you - I think your procedure is a ticking time-bomb. Always state a timeframe on invoices. As there is no time stated I'd suggest the implication is 'now'. So take a deep breath and call them - be pleasant but not subservient - and ask for payment by the weekend. Let's hope they are just lazy and not professional non-payers.
Have a look at Freshbooks. It can do full accounts, but I just use it for invoicing.
Allows you to email the invoice. It notes when they actually look at the invoice (quite useful) and sends reminders automatically. It's also very easy to spot the ones that are becoming a problem.
My own invoices include account details, IBAN and SWIFT details, 7 day terms, and a statement re statutory charges for late payments.
My first reminder (7 days) includes a statement 'As a small business we rely on our clients paying on time, and ultimately their failure puts credit terms at risk'. It made a surprising difference.
Forgot to say - people can also pay by Stripe (payment processor) or Paypal from the Invoice. Other options are available. I like to make it as easy to pay as possible...
Allows you to email the invoice. It notes when they actually look at the invoice (quite useful) and sends reminders automatically. It's also very easy to spot the ones that are becoming a problem.
My own invoices include account details, IBAN and SWIFT details, 7 day terms, and a statement re statutory charges for late payments.
My first reminder (7 days) includes a statement 'As a small business we rely on our clients paying on time, and ultimately their failure puts credit terms at risk'. It made a surprising difference.
Forgot to say - people can also pay by Stripe (payment processor) or Paypal from the Invoice. Other options are available. I like to make it as easy to pay as possible...
R1 Indy said:
Cheers guys, I will look to adding some terms to my invoices going foreward.
I will fire off an email in the morning to them, to confirm they received the invoice...
Email is OK, but you can't beat a good old fashioned phone call. It makes you more of a real person, and if they don't reply to the email you are still left wondering.I will fire off an email in the morning to them, to confirm they received the invoice...
Payment terms are a must.
If you don't then you expose yourself to all sorts of headaches. What's to stop them from paying 90 days? I would expect payment terms to be outlined on any invoice like that. In reference to your question, I'd speak to them and give a friendly reminder assuming they are happy with the work.
If you don't then you expose yourself to all sorts of headaches. What's to stop them from paying 90 days? I would expect payment terms to be outlined on any invoice like that. In reference to your question, I'd speak to them and give a friendly reminder assuming they are happy with the work.
https://www.gov.uk/late-commercial-payments-intere...
The above page said:
If you haven’t already agreed when the money will be paid, the law says the payment is late after 30 days for public authorities and business transactions after either:
- the customer gets the invoice
- you deliver the goods or provide the service (if this is later)
madmover said:
Payment terms are a must.
Exactly - if people know what's expected, most will adhere. They need to know what your terms are before you start the job, put it on your quotes/estimates and verbally confirm when you book the job in.Payment due on completion would seem reasonable for smaller domestic work. I'd be agreeing a cheque or BACS payment on the final day.
I am a One-Man band as well. I usually post Invoice within 7 days from completion of Job. At the bottom of my Invoice I have a Text Box of Payment Terms saying cheques payable to:....and also give Bank Details for Transfers. Under that I say Payments Due within 7 days of receipt of Invoice.
As a rule, if Payment is not made in 7 days I will contact the Customer by Phone or Text with a Polite reminder along the lines of...I just wondered if you had received the Invoice or if you had posted the cheque/Bank Transfer etc as I my Bank has no record of Funds being added.
Always works for me. That's just or little jobs though.
Longer Jobs, a month or more, I would arrange before starting job to be paid a Sum agreed every 2 weeks.
As a rule, if Payment is not made in 7 days I will contact the Customer by Phone or Text with a Polite reminder along the lines of...I just wondered if you had received the Invoice or if you had posted the cheque/Bank Transfer etc as I my Bank has no record of Funds being added.
Always works for me. That's just or little jobs though.
Longer Jobs, a month or more, I would arrange before starting job to be paid a Sum agreed every 2 weeks.
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