Volkszone Forum banner

Late payment charges

4K views 11 replies 9 participants last post by  Oval 
#1 ·
What's the best way of handling late payment ?

I've had a few people not pay on time, we're talking a few days maybe a week etc but the mounts are normally over a thousand pounds each time.

Now as said have all paid up but all my invoices are clearly dated and have a payment time limit printed next to my details etc etc
 
#2 ·
If you have clearly stated on the invoice that late payment of the bill will incur a late payment charge and by accepting the invoice the client accepts the terms and conditions of the late payment charge I would say you would be ok.

As I understand it as long as you can prove that goods and or services have been supplied then you have a legal right to claim payment for theses goods and services.
The service rendered in this case is the period of time between the invoice and the payment.
 
#3 ·
Hmmm yeah ok only problem I have is I have none of the "tech" stuff on the invoice just a statement asking for payment within 14 days or 30 depending on what company etc

I shall have to have a small print area at the bottom of each one.
 
#5 ·
If they are only few days or a week late would it be a good idea to be chasing them for late payment fees. I don't know what your business is but it would put people using you again and I think the amount of effort it would take to get them to pay would not be worth it. I also think you would need to send a reminder and it be sent recorded delivery. original invoice would probably need terms and conditions on it stating what a late payment would cost.

Sent from AutoGuide.com Free App
 
#9 ·
It can take more than a week for my customers to raise a cheque or make a BACS payment. If your supplier payment timescales are tight, maybe bring forward your payment terms to allow some leeway. Otherwise copy your supplier t&cs onto your invoices. In my experience accs depts pay little or no attention to details on invoices other than the amount payable.

To aid cash flow have you considered invoice factoring? There is a cost but it does allow credit terms to customers/clients and releases funds tied up in invoices, I use it to good effect.

I know a very flexible finance company who allow you to choose which invoices to factor and cope with small turnovers....don't go to the banks they're hopeless. PM me if you're interested.
 
#12 ·
I'm forever I chasing money, just getting paid is a bonus these days, trying to charge extra will get you nowhere.

Try and find somebody you can talk to in the accounts dept sometimes you can find someone helpful who will tell you how they work as you are in their hands. Don't get arsey with them as if they are difficult you will just end up at the bottom of the pile.

Once you work out how they work you have to decide if you can work with them I've got rid of two customers this year they have loads of work but mess you about with money. So I put more effort into the good payers

Cheers Andy
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top