Collecting debts

[Thick Farmer]

Thanks for all the responses and sorry I haven't been back sooner (been out collecting my wonga

)

I have managed to collect most of it now, and the rest we have come to various agreements about how it is going to be paid off. So far it seems to be going OK.

What I have learned / changed:

- Invoices are now going to be created the week the work is done and will be posted that day as well
- A statement will be sent 1 week before the invoice is due reminding them that they owe me money
- A further statement will follow every week from then on if they still don't pay
- The day the invoice is due I will be phoning them askign for the money
- I will be charging invoice on all invoices that are overdue and this is now very clearly shown on the invoices
- I will be much more careful taking on new customers in the past who's payment history I do not know

I was worried that these new measures would alienate my customers but in truth it will have no effect on the good customers and the bad customers can sod off if they don't like it . It has been a good learning experience for me because this could very nearly have taken me under.

Thanks for all the advice

Well done, it takes guts to sort yourself and your business out in this manner, but in my opinion it is the only way to continue to trade.

 

[Tim G]

I was told not to charge interest on in invoices if over due because it can then be seen as a loan and all your customer has to do is pay the interest, not the balance. Don't know if that's right but might be best to make a surcharge.

 

[Derrick Hughes]

Can you charge interest on over due accounts and if so how do you go about it, you can't just send another invoice and is there a set rate for this ?

 

[Pennine Ploughing]

Can you charge interest on over due accounts and if so how do you go about it, you can't just send another invoice and is there a set rate for this ?

Think it has to be set out from the start in your business terms and conditions
No point sending a bill for the interest after if they cannot pay the fevking bill

 

[caveman]

Just charge more and offer a discount of 10% on the bottom line (two columns...either or) if the invoice is paid in full by the end of the following month.
Make it easy to pay as well, by including bank details for online payments..
Shame them into paying by offering for them to make part payment, as and when they can.
A lot of people may just go into shutdown and denial if they feel thier only option is to settle a huge bill in one hit,
If you have been established for a good while and have "ridden out the storm", you could maybe offer equal monthly direct debits to your repeat customers, much as energy companies do?

 

[DRC]

Wynnstay farmers bill always has 20% more added,which you can knock off if paid on time or 10% off if paid after 30 days.
Gave me a shock when i first saw it, thinking they had overcharged me.And considering i pay all bills at 28 days,found it a little insulting.

 

[Flossie]

Two or three businesses that we deal with have a credit charge added that you knock off if paid on time. One is a bit sneaky and doesn't show it on end of month statement, so you have to remember to knock it off Can't blame them though, for all good payers there are bad uns too.
I was a feed rep back in the day and I had to collect my accounts (in the days before Bacs!). A couple of farmers would buy off me for 6 months then take 6 months paying it back whilst running up a debt with another firm Used to really pee me off going to see them every couple of weeks with the lines;

He's just gone out with the chequebook
Just used the last cheque
Come nearer the milk cheque
He's not in and I can't sign cheques

 

[leone75]

One large company I work for gives an order number for a job on the order number paperwork it states that any invoices quoting this number received after 60 days will not be paid.On the other hand they pay my bills on the 15th of the month following invoice.
This company had a self employed welder that sent in £10k of bills all late and it stood up in court and they did not pay. I think they had given him a few reminders!!!
Nothing bugs me more than people invoicing me late .
I try to send bills out every week and most customers I have are pretty good but the odd one needs a reminder.

Leone75

 

[Y Fan Wen]

One of my suppliers charges 3% over base compounded monthly if not paid within 7 days!
As the service he gives is first class, and I always pay by return anyway, I have no problem with it.

 

[lim x]

I like to pay my bills on time and some of them for earlier than necessary, ie the contractors for silage and the wrapping chap, i drop the cheque off next day after receiving the bill, as i want good service when the time comes for mowing.
Always pay the vets as i am passing as well.

I can't stand late bills. The chap who bales our straw is terrible for not sending a bill and i have to ring to ask for it. Hate having to pay for something i have nearly used.

We rent out a few buildings for storage. If they don't pay on time we park a tractor or implement outside their doors until they do, soon they appear with the reddies

 

[Derrick Hughes]

http://jonathan-andrews.pissedconsumer.com/jonathan-andrews-ltd-20120425314547/4.html


Not going to mention names but we used the above enough said and be warned, we now used a local guy who is 100%

 

[IANTO]

Can you charge interest on over due accounts and if so how do you go about it, you can't just send another invoice and is there a set rate for this ?

See: http://payontime.co.uk/

A Statutory Right.

All you need do, is calculate, whether the Interest at the Statutory Rate + Compensation, and work out if it is cost effective.