Getting paid

90% of my customers pay on time, one building firm is a Fookin nightmare and he's been a mate for over 10 years and a well known bad payer by all.
I've only been going a year and need cashflow,
Do I ,A- put on his invoices only if bill is not paid in 28 days you will get charged x%, or
B- offer a slight discount if they pay on time,
Ive tried talkin to him but he always tells me his skint or he will put a tiny percent of the owed money in my account. He drives around In a 45 grand car.
Before anyone says it I'm not goin round and smashing his face in, I'm thinking of refusing to do anymore work for him
Cheers lads
John

It's getting tougher and tougher to bring the cash in. I would add a couple of percent on to my estimate and offer it back as a discount, still add onto everyone's invoice they will get charged 2% over the current base lending rate.

A letter from risk disc will cost you a tenner or something maybe less, good results from that.

I think that's the way forward AOM,let them think there getting something back,I don't want to fall out over it,nice bloke away from work,Fookin brickies,tossers lol

I'm pretty much up to the back teeth with it myself, going with the heavy guns now. Fook em.

Can I suggest you google 'The late payment of commercial debts (interest) act 1998' as this gives you the legal right to charge interest on any overdue payment from the day after it falls due. The legal amount is 8% + the current bank rate.
You must consider when the invoice date is agreed in law and the period from invoice date to final payment of invoice (This might be 28 days from date of invoice if there is nothing else in writing). There is a minor ammendment to the legislation in March 2013 but nothing signicant.
If you dont use it this time round you might want to add a clause to future quotes/invoices stating they will be subject to this legislation.

Its Getting Harder To Be Paid On Time And The Big Boys Are The Worst, They Think Its All Right To Withhold Payment Because You Have Incorrectly Numbered An Invoice, It Really Gets On My Hump.

Binthere said:

Can I suggest you google 'The late payment of commercial debts (interest) act 1998' as this gives you the legal right to charge interest on any overdue payment from the day after it falls due. The legal amount is 8% + the current bank rate.
You must consider when the invoice date is agreed in law and the period from invoice date to final payment of invoice (This might be 28 days from date of invoice if there is nothing else in writing). There is a minor ammendment to the legislation in March 2013 but nothing signicant.
If you dont use it this time round you might want to add a clause to future quotes/invoices stating they will be subject to this legislation.

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What a brilliant piece of information,thanks,one of the reasons I love this site.

I honestly know the feeling Big John:wacko:, Sat here with big vat bill, cis tax owe us more, customer owe us more, paid all lads wages and thinking whats it all about?
Is it too late to be a Barber? nice shop warm heater on cutting hair talking about the weather, football etc etc:laugh:

You get people who cant pay and you get people who wont pay.
People who cant pay you sit down with and work out a way so both sides are happy and the bill gets paid off.
People who wont pay are the ones who give you problems and sound like your mate driving round in his £45k car, Simply answer is ask for 75% up front or no work gets done, If he does not pay you then he has no intension of paying you at all, It wont be long before his bad name of not paying gets about and no one will work for him, The days have gone of beating people up trying to get paid, If you have done a good job on time like they have asked and paid for then there should be no question when it comes to paying the bill thats been agreed. You say he's a mate! but does he class you as a mate if he's not paying his bills??

Your mate is taking the ****. Mate, thats right, isnt it?

He's a well known bad payer, I'm giving him till Wednesday to pay,if he doesn't ill have a friendly word, if that doesn't work ill do the old threaten legal action thing,he gives me regular work but I'd rather not do it then I won't have this ***** to worry about constantly,the worst of it is I do his jobs cheap cause he's a mate, well, was a mate

One thing I have learned since being
In business is there is no such thing as
Friends in business! Your customer will
Laugh and chat with you ask you the odd
Favour but all of a sudden you may be a
Couple of days late on something and that's
It! How they turn!

i disagree, even though they are customers i've met some great friends through business, as has been mentioned these kind of people do everything they can to arrange payments even in tough times and its usually their customers who don't pay which is where the problem starts. Also i've found a 3rd party letter from a debt collection company also brings faster response to late payments, i know i do when they come through my door hehe but i think in our game things wont ever change, getting that money in will always be a headache