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Late Paying Clients

Discussion in 'Business & Tax Advice' started by mattbowden, Jul 13, 2011.

  1. mattbowden

    mattbowden Regular Member

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    I have been selling what I do well every month :) but I am starting to get issues with late paying clients. The people who use me are not the same people who pay the bill from the company. I have had to employ an invoice chaser on a part time basis. My cash flow is becoming bad. This week i was promised over 2k in payments but so far have only got 120. Any suggestions as i am starting to bite chuncks out of the wooden table I have. I have started chasing on 28 days with 30 days accounts. You phone the bastards up and they promise payment this is taking three or four phone calls per invoice.
     
  2. PinkBitz

    PinkBitz Regular Member

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    Cash up front option? Or what we have is a solid contract stating that there is penalty charge for overdue accounts.
     
  3. #Arby#

    #Arby# Newbie

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    Always get half upfront, with a penalty charge clause.

    For the late payments you already have call in a debt collector, its harsh as you loose a percentage to the collector but they will pay straight away.

    Had this many times in the past and tried all sorts of methods from taking their site down and putting up a 'pay now' message to going to claims court. All these methods are a big waste of time and get no results. A debt collector at your door mean you pay ;) its the only method I use now.
     
  4. Business Directory

    Business Directory Junior Member

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    Setup your customers to pay you via direct debit, it's a lot easier. You might pay more fees for the services, but in the long run you don't have to chase fees. And sometimes companies even forget that you're debiting their account.
     
  5. Business Directory

    Business Directory Junior Member

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  6. mattbowden

    mattbowden Regular Member

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    Thanks for response have debt collection agency will start to use them more effectivley
    and thanks for taking the time to reply
     
  7. eloquenceeee

    eloquenceeee Regular Member

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    It seems like the debit option is probably actually the best bet.
    I might think about that when expanding.
     
  8. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    A discount for paying early may help... I used to do that for my tenants. The rent would be 500.00 a month but if they paid before the first, they could pay only 450.00.