Just What Does it Take to get Paid on time?
Discussion
FFS, yet another month where invoices aren't paid on time.
Exactly no money has come in this month. Again.
Excuses range from "oh, these invoices haven't been signed off" to, well, nothing. Ignoring emails & voice mails is a strategy, apparently.
I had a "personal guarantee" from a finance director "just submit your invoice & I'll make sure it gets paid". Funny how the fork-tongued bell-end has apparently lost his voice.
This is from a multi-billion $ turnover company who purport to engage in "Suppliers: Ethical Business Practices - As an industry leader and responsible business, we leverage our position to promote the highest standards of business conduct wherever we operate".
I guess you don't get to be a multi-billion $ turnover company by paying your suppliers on time.
Exactly no money has come in this month. Again.
Excuses range from "oh, these invoices haven't been signed off" to, well, nothing. Ignoring emails & voice mails is a strategy, apparently.
I had a "personal guarantee" from a finance director "just submit your invoice & I'll make sure it gets paid". Funny how the fork-tongued bell-end has apparently lost his voice.
This is from a multi-billion $ turnover company who purport to engage in "Suppliers: Ethical Business Practices - As an industry leader and responsible business, we leverage our position to promote the highest standards of business conduct wherever we operate".
I guess you don't get to be a multi-billion $ turnover company by paying your suppliers on time.
Smiler. said:
FFS, yet another month where invoices aren't paid on time.
Exactly no money has come in this month. Again.
Excuses range from "oh, these invoices haven't been signed off" to, well, nothing. Ignoring emails & voice mails is a strategy, apparently.
I had a "personal guarantee" from a finance director "just submit your invoice & I'll make sure it gets paid". Funny how the fork-tongued bell-end has apparently lost his voice.
This is from a multi-billion $ turnover company who purport to engage in "Suppliers: Ethical Business Practices - As an industry leader and responsible business, we leverage our position to promote the highest standards of business conduct wherever we operate".
I guess you don't get to be a multi-billion $ turnover company by paying your suppliers on time.
Are you me? Literally word for word. Exactly no money has come in this month. Again.
Excuses range from "oh, these invoices haven't been signed off" to, well, nothing. Ignoring emails & voice mails is a strategy, apparently.
I had a "personal guarantee" from a finance director "just submit your invoice & I'll make sure it gets paid". Funny how the fork-tongued bell-end has apparently lost his voice.
This is from a multi-billion $ turnover company who purport to engage in "Suppliers: Ethical Business Practices - As an industry leader and responsible business, we leverage our position to promote the highest standards of business conduct wherever we operate".
I guess you don't get to be a multi-billion $ turnover company by paying your suppliers on time.
Kept emailing and phoning them today and all of a sudden they finance dept is on holiday.....boils my urine!!!!!
ds!!!
P924 said:
Are you in a position to move to direct debit?
I could probably list just five companies and one of them would be the one that the OP is referring to. They and others like them impose the rules on a like or lump it basis - direct debit falls into the lump it category.The problem is that that the people and processes that control payments are a long way removed from those that commission the work in the first place. They receiving hundreds if not thousands of invoices each week and enact system that prioritise payment to those suppliers commensurate to the level of the importance of what they are supplying.
It's completely unfair and an utterly abhorrent practice. We came the closest we have ever been to going bust in 2013 - which was one of our most profitable years - because of one's client delays in payments - probably the same company the OP is referring to.
Our UK work is now almost all Local Authorities. Most pay within 7 days but all within 30 days without fail. We can't charge the same margins but I'll take cash in the bank over boosted margins any day.
in a lot of cases they have no intention of paying, and probably hope that you will just go away and stop bothering them with trivialities like actually earning a living. It's sad that most finance directors see thier job as screwing suppliers over, then wonder why no subcontractors etc will come on site.
Spumfry said:
Add statutory interest and the flat 'debt recovery fee', that should get their attention.
^^^ This ^^^(Providing you've ticked these boxes)
UpTheIron said:
What are your terms?
What are their terms?
How long has it been?
Do you have the relevant wording on your invoices and/or in your contracts?
What are their terms?
How long has it been?
Do you have the relevant wording on your invoices and/or in your contracts?
When I managed an IT dept the only invoices paid within the suppliers terms were
Dell - Strictly 30 days on account is held
BT - They simply suspend your service
Datacomms supplier - Internet access essential
Software licences
All others we paid on our payments terms (2.5-3.5 months) regardless of what you put on your invoice. Only exceptions were Techie contractors who were good and the Electricians (because they were great and a small firm)
Dell - Strictly 30 days on account is held
BT - They simply suspend your service
Datacomms supplier - Internet access essential
Software licences
All others we paid on our payments terms (2.5-3.5 months) regardless of what you put on your invoice. Only exceptions were Techie contractors who were good and the Electricians (because they were great and a small firm)
i can see this issue with chasing up and pissing off your client. It's catch 22.
Mrs 111R used to be a Credit Control Manger and the basics of this was that they used relationships to get bills paid sooner/on time. You could send in your invoice then , a week or so before it is due, call them to check they received it and that it is all ok. Assuming it is all ok, follow up with a gentle question regarding when it will be paid might get you what you want. I am sure 99% of businesses don't do this, so you'll stand a better chance of being paid. if you do this each time you'll build a relationship with the finance contact too.
Mrs 111R used to be a Credit Control Manger and the basics of this was that they used relationships to get bills paid sooner/on time. You could send in your invoice then , a week or so before it is due, call them to check they received it and that it is all ok. Assuming it is all ok, follow up with a gentle question regarding when it will be paid might get you what you want. I am sure 99% of businesses don't do this, so you'll stand a better chance of being paid. if you do this each time you'll build a relationship with the finance contact too.
It's a problem that seems to be getting worse. Running a small business you can only pay downstream to your suppliers and people what you get from clients from upstream. If you don't get paid on time then you can't pay your people/partners which in turn makes you look and feel bad.
We have a minority of clients that still pay like clockwork, same date each month, but a majority that fluctuate the date/frequency of payments which can really screw up cash flow and payments. And, as has already been said, chasing for payments doesn't help client relationships and can also look 'bad' even if you are just asking for what you are contractually owed.
Not sure there are any easy answers except you have to manage your supply chain in a similar way to make things balance - something a lot of business owners wouldn't choose to do given the choice.
We have a minority of clients that still pay like clockwork, same date each month, but a majority that fluctuate the date/frequency of payments which can really screw up cash flow and payments. And, as has already been said, chasing for payments doesn't help client relationships and can also look 'bad' even if you are just asking for what you are contractually owed.
Not sure there are any easy answers except you have to manage your supply chain in a similar way to make things balance - something a lot of business owners wouldn't choose to do given the choice.
When I was running my own business I sometimes chased overdue invoices by phoning and asking to talk to the person not handling my account. When what I had said was queried I would respond with, "Well, some-one isn't handling my account". Usual got a laugh and I got to speak to the person who could authorise payment.
feel your pain OP.
run a small airport transfer company and some of our clients approach to payments is our biggest problem. If we could get all our clients to pay us on time my cash flow situation would improve 10 fold.
quick glance at our billing software tells me all I need to know nowhere near as bad as some peoples I would wager but for a small firm bad enough, bear in mind everything shown here is already over our standard 30 day terms and we pay our drivers weekly
its this sort of stuff that can make or break a small firm thankfully ours has dropped a fair bit since we took on a rather good full time admin who keeps on top of these as we were another on the verge of going under early on this year just because of unpaid bills.
run a small airport transfer company and some of our clients approach to payments is our biggest problem. If we could get all our clients to pay us on time my cash flow situation would improve 10 fold.
quick glance at our billing software tells me all I need to know nowhere near as bad as some peoples I would wager but for a small firm bad enough, bear in mind everything shown here is already over our standard 30 day terms and we pay our drivers weekly
its this sort of stuff that can make or break a small firm thankfully ours has dropped a fair bit since we took on a rather good full time admin who keeps on top of these as we were another on the verge of going under early on this year just because of unpaid bills.
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