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resolving slow paying customer issues
Ok how can I resolve this pattern please help!!
got order with deposit
done the design
2 days for the installationapproximate time is about 3-4 days full work
to get the remainder of the money its taking me 3-4 weeks which can be very stressful. what is the best way to resolve this??
Its just not fair that getting the money is much much more work then the work itself😥
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10 Replies
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Welcome to the sign game!
Oh…..and invest in a baseball bat! 😉 -
50% up front & 50% on delivery/installation or no sign(s) for all new or potential dodgy customers…simples!
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I find most large companies take a minimum of 4 weeks to pay up and then only if sent a statement.
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I deal regularly with one company who wont pay invoices until the last working day of each month, they always pay but I now only do work for them in the last 2 weeks of the month.
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quote Peter Dee:I find most large companies take a minimum of 4 weeks to pay up and then only if sent a statement.Ditto
I would actually settle for 3-4 weeks from date of invoice. Having said that it depends on who you are dealing with. When giving credit we try and use common sense. 75% of new customers will be asked to pay on completion with us and we only ask for a deposit from less than 10%.
Touch wood we have had very few bad debts in the 6 years of trading (4 adding up to less than £400).
When quoting jobs make sure you include your payment terms.
Cheers
Gary
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be clear with the customer before you install the job that balance / payment is due upon completion unless agreed otherwise. new customers always pay a deposit and have to build trust to gain any kind of credit. always ensure a deposit at least covers the materials you’re purchasing. ensure your paperwork has terms and conditions on, nothing fancy, just simple and laid out clearly so no confusion can be claimed.
in my terms it includes the fact that by agreeing to contract me / signing the paperwork, they are giving permission for unpaid for work to be removed from their premises / vehicles / property in the event of non compliance with terms and fair warning.
I’ll chase for two weeks before I email to say what time i’ll be around to remove the signs, if payment isn’t instant, it usually is once you start unloading ladders / tools 🙂
only had to actually do that once though!
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quote Gary Birch:Touch wood we have had very few bad debts in the 6 years of trading (4 adding up to less than £400).count yourselves lucky just over £27K this year , the latest being 3.5K last thursday, and believe me were not that big a company.
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Blimey Ian, I could live on what you lose in one year.
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quote Ian Johnston:quote Gary Birch:Touch wood we have had very few bad debts in the 6 years of trading (4 adding up to less than £400).
count yourselves lucky just over £27K this year , the latest being 3.5K last thursday, and believe me were not that big a company.
Ouch!! That would pretty much wipe us out. I hope your luck changes soon.
Cheers
Gary
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looks like a well set of terms and conditions are to be focused on for me. Will definitely take the advice of many on here.
thank you!!!
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