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Late Payments
Hi all….I was wondering if you all have problems with late payments….or no pay at all when your subcontracted out from a National Sign or Service Companies…..whether you are installing or servicing a sign like we do over here in the US?…….usually by law it’s 30 days with standard license and contractors law….we see an average of 90-180+ days for payment …….far from 30 days….
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10 Replies
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Seems to be the same the whole world over! Probably the biggest problem in the industry here.
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Apply interest to late payers past 30 days
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quote Graham Shand:Apply interest to late payers past 30 daysHow does that work?
I did some work for a MINI dealership 3 1/2 weeks ago, and was told that payment would be forted that week however still waiting for payment and have just been informed today that THEIR customer should be paying me not them? Ive never even had any communication with their customer. Anyone got advice on whats best to do?
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Had a presentation from a Solicitor at our networking event about this.
There’s little we can do to get cash back, unless we get everything right, even credit checks. A CCJ doesn’t guarantee payment… and if you put a charge on their house, what’s to say they don’t already have 10 others… little chance of getting paid.
Always get it in writing, and get a signature that they’re happy with the job when it’s done. I admit I rarely do, but I should look at it.
Search Late Payment and Commercial Debtors Act on Legislation.gov. You can charge 8% above base rate, and claim compensation under the act. Worth a go.
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If you can’t get the money they owe not sure how you get the interest. A long standing problem regardless of trade or profession. The government should address this before fannying about with Europe.
Alan D -
The laws in Scotland are unique in this regard, it is much easier to freeze a companies assets, for non payment , the last time I did this it cost £15.00 and froze the assets of a company with a turnover in excess of 10 million, and guesss what a biker was sent round within 15 mins with a bag of cash.
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Bloody hell the Scots have a cracking system!
I do wish that the government would pull their finger out. Make something that is enforcable, and is a deterrent!
Not only would it make every business in the land happy, but would certainly benefit the government, encourage spending!
Graham, does the law solely apply to companies registered in Scotland? And do you need to know the in’s and outs of a bears arse to get it?
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It does only apply to companies based or operating in Scotland, a law passed a couple of years ago by the Scottish government , states that large companies cannot with with hold payment to smaller companies for more than 30 days, what happens in practice is different, but if the terms of my payment are infringed, I do not tend to mess about, 50 % up front and the remaining balance upon completion. I might be one of the few who don’t have cash flow problems, but I am not shy about how, when I am getting paid, I spend as much time on this issue with the client as I do sorting out the design/ fonts etc. If I have not worked for them before it is all up front.
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Here….depending on the state…..some remedies are to put a lien on the property where the work was performed…..
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quote Adam Randell:quote Graham Shand:Apply interest to late payers past 30 days
How does that work?
I did some work for a MINI dealership 3 1/2 weeks ago, and was told that payment would be forted that week however still waiting for payment and have just been informed today that THEIR customer should be paying me not them? Ive never even had any communication with their customer. Anyone got advice on whats best to do?
I’ve sub contracted for car dealerships for 15years in the paint game and they’re a pain for payment and notorious for holding back monies owed. The oldest tricks in the book for them is either that they’ve mislaid an invoice or they’re waiting for the cheque to be co-signed. Thirty days is rare for payment within the car sales industry, it’s more like 60/90days and even though YOU are the supplier they seem to think that they can they pay on THEIR terms and conditions. It’s just a matter of educating them!
Write a polite but strongly worded letter confirming the agreed price, who your work was arranged through etc. Ask for payment in 7 days, or you will take appropriate action. On day 8, issue on line Small Claims proceedings. Cost £25 which is added to debt. Once it’s in the system, they have 28 days to pay, and it’s no longer your problem, the customer has to deal with UK due legal process.
Here’s a link to the detailed but simple small courts procedure http://www.small-claims-court-support.co.uk/
I hope this helps in some way.
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