Business Credit Account

[Scousejock]

Wasn’t sure which section to put this under.

In our business (driving school) lessons are paid for and then given. However we are now expanding into commercial driver training for buses, lorries and trailers.

We have taken some bookings from quite a large Ltd company who want us to put a number of their employees through the b+e trailer test. They have asked if we can set up an account for payments to be made monthly through their accounts department. As bookings are taken in advance and will be invoiced at the start of the month. (Thinking 14 day payment from invoice) we will not be at risk financially as it isn’t often the course will start before this time. Will need to put T&C in for course cancellations etc

I can carry out some checks and due diligence to make sure we are happy to do this but I need to put together a credit account application with terms.

Is there any standard templates anywhere that will give me a good basis of what to use.

 

[ecommerce84]

When I made our credit account form for our business I amended one that I had from a large supplier of ours, could you do similar?

When I last worked for a fairly large company with its own accounts team, they would always (purposely) pay late. One of the team once said to me ‘if they want payment within 30 days, tell them to ask for it within 14 days’.

It was a nightmare for us dealing with suppliers as we were routinely ‘on stop’, but it’s not unusual for larger companies to stretch out payment as much as they can do don’t be afraid to refuse bookings if they fall behind with payment.

 

[Scousejock]

That’s what I thought get one from someone else and use it as a base. Unfortunately we dont have or need a credit account with anyone so got nothing to base it from.

Yeah my dealings with the larger companies, councils and government offices are they are not great payers. We can overcome this as courses will be booked and paid in advance of the course. So if not paid course will be cancelled and deposit lost.

 

[Nochexman]

Just a thought, and maybe you don't want to train your customers, but is there any reason why you should not ask your client to pay at the same time a booking is made?

 

[Scousejock]

Just a thought, and maybe you don't want to train your customers, but is there any reason why you should not ask your client to pay at the same time a booking is made?

We normally do with learners. But on commercial when it is for larger companies with different depots and accounts departments they will generally want invoices going through to the accounts department to be paid.