Invoicing Payment Protocol
Discussion
Guys this is pretty new to me, I can invoice for a website fine with start mid and end payment or if a small one its just one invoice but for marketing I thought it would be.
Marketing (fixed cost / hours) starts 1st of month, invoice raised at same time with 30 days to pay so we get pid the end of the month in which we have done the work
My partners dont agree they think
Marketing starts 1st of month invoice raised at end of month with 30 days to pay so 60 days from start of work
OR any other methods I would appreciate a heads up
Marketing (fixed cost / hours) starts 1st of month, invoice raised at same time with 30 days to pay so we get pid the end of the month in which we have done the work
My partners dont agree they think
Marketing starts 1st of month invoice raised at end of month with 30 days to pay so 60 days from start of work
OR any other methods I would appreciate a heads up
Go with the first. Most clients won't pay until the work is done anyway but at least you get it in sooner than 30/60 days later.
If you are dealing with smaller businesses then Direct Debits are the way to go and Go Cardless is the system to use. Automatically set it to take payment on the 1st day of the next month and all it costs is £2 per transaction.
If you are dealing with smaller businesses then Direct Debits are the way to go and Go Cardless is the system to use. Automatically set it to take payment on the 1st day of the next month and all it costs is £2 per transaction.
Just call it a retainer. I raise an invoice at the beginning of the month with a due date of the middle of the month. Customers pay me on time. I'm working half the month in arrears and half in advance and there's no rational argument a client can have against this, obviously subject to providing a service they value.
desolate said:
I have just had by first corporate client say to me "we pay our suppliers 45 days, end of month of invoice"
Effectively implying we would be working throughout June and July before get paid in August sometimes for the June work.
F R O.
I've got corporate clients agreeing to pay me quarterly in advance. Usually they don't pay till month 1 but still means I'm getting 2 in advance.Effectively implying we would be working throughout June and July before get paid in August sometimes for the June work.
F R O.
Sparkyhd said:
I've got corporate clients agreeing to pay me quarterly in advance. Usually they don't pay till month 1 but still means I'm getting 2 in advance.
Yes - I told them it was unacceptable and that I wouldn't work on those terms. There was a couple of days of ruffled feathers and then they found a way round their issues.
Jockman said:
We are based down the road from you. We deal with The Coop. They are a big client and very ethical.
The contract we have with them states max 45 days. We invoice on the day of delivery and they pay in circa 30 days.
For an actual item I'm ok it's what I've been doing for years but this is an invisible service and it's on top of the retainer.The contract we have with them states max 45 days. We invoice on the day of delivery and they pay in circa 30 days.
So we finish a site, a small retainer is agreed for tweaks and changes invoiced 1st due 30th but on top of this could be marketing as social, seo, analytics etc which is what I'm struggling with.
I think I'm going to go with 1st due 30th and work a month in advance which is slightly risky if they cancel marketing but they would still be a client and we would have leverage.
I'm also looking at go cardless to automate it - cheers chaps.
The most common approach is x days from the end of the delivery period e.g. month. On 30 day payment terms that would be 60 days from work starting etc. The cash flow implications are obvious. Retailers in the UK have been shamed into improving terms for SME's but plenty of other sectors still operate 60-90 day terms from the end of the month that the invoice was submitted.
This is standard for services but doesn't mean it has to be like that and we have various arrangement with our corporate clients which include pre-payment of 3m up front and then slotting into their standard process. Those tend to be for services that are not particularly important to the client and do take a while to get up & running. Ultimately payment terms are all negotiable and if someone wants your services badly enough they will try to make something work out. The challenge is where they require a goods reciept in order to enable a payment.
This is standard for services but doesn't mean it has to be like that and we have various arrangement with our corporate clients which include pre-payment of 3m up front and then slotting into their standard process. Those tend to be for services that are not particularly important to the client and do take a while to get up & running. Ultimately payment terms are all negotiable and if someone wants your services badly enough they will try to make something work out. The challenge is where they require a goods reciept in order to enable a payment.
KevinCamaroSS said:
A goods receipt is for material items, a certificate/receipt for services, or similar, should be used for services.
If the processes are manual that that will suffice for the 3WM, if the customer uses any type of automation for the 3WM then receipt of physical articles or services will be represented by a GR.Gassing Station | Business | Top of Page | What's New | My Stuff