Am I OK to do this?

[ccp consultancy]

Hi there:
Just a quick query:

If I was to allow a company to pay for my services in 4 installments, rater than pay me in one lump sum , can I just do this, or is there some financial /legal restraint on me doing this / do I have to register with a financial body to do this

Thank you in advance for your help

 

[akirk]

depends whether you are giving them credit or not - in which case you may need a licence to do that...

if you just invoice them in sections then I can't see an issue - up to you when you invoice them - very normal to have projects with deposits and then staged payments

Alasdair

 

[Tom McClelland]

depends whether you are giving them credit or not - in which case you may need a licence to do that...

Do you really need a licence to give another company credit? Surely that is what almost every B2B trader does all the time. Most don't have any kind of licence and I've never heard of the requirement.

 

[akirk]

Sorry badly phrased...

If you come under the laws relating to credit (rather like visiting DFS and buying sofas on credit type of thing) then you need to comply with those laws

Allowing someone to pay late is different

Alasdair

 

[Frankus]

Simplest way: Just send 4 invoices each dated the same date, a month later. Stress though, that each invoice MUST be paid by a certain date, otherwise the full amount becomes payable immediately.

You are doing them a favour and you don't need to be screwed around. Shouldn't be a problem if you have a good relationship with your customer.