Payment of Invoices

Discussion in 'Legal' started by sniper74, Jul 25, 2019.

  1. sniper74

    sniper74 UKBF Newcomer Free Member

    19 1
    We run a small printing business and it seems to be very seasonal with our main work being School Leavers garments.
    We have always accepted payment either on delivery (cheque/cash) or by Bank Transfer and I think that's why a lot of schools tend to go with us as we don't ask for payment with the order.
    As soon as we get an order we generate an invoice and send it to them. Now the issue is that by the time the secretary sends it to their finance department and they process it can be 4-6 weeks before we receive payment and by that time they have received the order and, like the situation now - it's the last day of term and I am chasing payment from 3 schools!
    My feeling is that we need to be receiving payment before letting them have the goods but we don't want to be in a position where we've paid out for materials and have printed them for them to not pay and then we are stuck with their order and out of pocket? Wondering if there is a contract that once they've placed an order then they are bound to it and have to pay before receiving their order but if they don't pay before end of term they are still liable for the invoice even though they have no garments?
    Posted: Jul 25, 2019 By: sniper74 Member since: Apr 30, 2018
  2. Newchodge

    Newchodge UKBF Big Shot Free Member

    14,180 3,738
    That makes no sense whatsoever. Your current system means that all of that happens AND they receive the goods but you may not get paid.

    Yes your terms and conditions can state that, once an order is placed it cannot be cncelled and that payment must be received befor the goods are despatched.

    Why not talk to your main clients (next term, obviously) and work through what works best for them and you.
    Posted: Jul 25, 2019 By: Newchodge Member since: Nov 8, 2012
  3. Mr D

    Mr D UKBF Legend Free Member

    22,060 2,592
    May be worth looking at your credit policy and require payment of part upfront or even all upfront.
    Posted: Jul 25, 2019 By: Mr D Member since: Feb 12, 2017
  4. sniper74

    sniper74 UKBF Newcomer Free Member

    19 1
    Thank you for your replies. Both very helpful. Yes, for larger orders maybe a deposit would be a good idea - least that way its just chasing part payment! Will definitely be updating our terms and conditions too. Thank you so much.
    Posted: Jul 25, 2019 By: sniper74 Member since: Apr 30, 2018
  5. Biro

    Biro UKBF Newcomer Free Member

    13 0
    in the construction industry we are generally now being asked for a % or part payment up front on placement of the order, generally for the cost of the materials, then sometimes a % a week before delivery and the rest on 30 days after delivery, so like 40,40,20.
    having said this, all orders are different and we pick up the phone and negotiate with every specialist supplier - and schools finance offices can be tricky to navigate their systems. i suggest you talk to your customers and work out how to make it work for both of you.
    Posted: Aug 1, 2019 By: Biro Member since: Feb 28, 2019
  6. Anthony - Westbury

    Anthony - Westbury UKBF Newcomer Free Member

    22 1
    Yes, why don't you take 50% upfront (cover your costs) and 50% - 30 days after the order has completed.

    If you need help chasing up the payment we can assist. Also can look at your terms so that suppliers wont want to fall into a late payment status and have to pay debt recovery costs on top.
    Posted: Aug 7, 2019 By: Anthony - Westbury Member since: Jul 10, 2019
  7. Nochexman

    Nochexman UKBF Enthusiast Free Member

    1,916 292
    This. There is a reason why your competitors do this. Ask for payment with order.
    Posted: Aug 7, 2019 By: Nochexman Member since: Jun 14, 2011