Payment TnC's

Discussion in 'Cashflow forum' started by terranomade, Apr 25, 2013.

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  1. terranomade

    terranomade UKBF Newcomer Free Member

    3 0
    Morning all,

    Newbie here...

    Just been caught on the hop, was planning to launch my new business on the first of May, allowing me time to get invoicing and accounts all set up.. Low and behold, I was asked for a quote for a job (cant turn down business) some company specific stickers. Sent a basic quote off to them and got a call from them last night saying they were wanting to place an order... EEK! Could I send them an invoice, now as I am not able to carry out credit checks etc, and also wanting to protect myself as much as possible, would it be acceptable to just say payment by return?

    And is there anything else I should be putting in the terms...
    For info Im starting up making stickers for vehicles primarily the 4x4 markets then moving into personal off-roading equipment, such as torches, multi-tools and the like.

    Many thanks in advance.

    Dave
     
    Posted: Apr 25, 2013 By: terranomade Member since: Apr 25, 2013
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  2. DavidWH

    DavidWH UKBF Enthusiast Free Member

    1,614 307
    For new customers we ask payment up front. Usually for the first 3 orders. Then after that use common sense. If they place 100 orders for £5, doesnt mean they will pay for the £6k order later, so would ask for a deposit.

    Lend what you feel comfortable to loose. And remember make sure you account for credit peripd in your price. Not worth waiting 30-90days for £20 profit.
     
    Posted: Apr 25, 2013 By: DavidWH Member since: Feb 15, 2011
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  3. terranomade

    terranomade UKBF Newcomer Free Member

    3 0
    Many thanks for the info and really nice site you have!
     
    Last edited: Apr 25, 2013
    Posted: Apr 25, 2013 By: terranomade Member since: Apr 25, 2013
    #3
  4. Banksbroo

    Banksbroo UKBF Regular Free Member

    229 49
    Agree - ask for payment with order, bacs payment best - tell them bank account and sort code, paypal, card, cheque etc, whatever methods you will accept, make it easy for people to pay you.

    One way of doing this is to issue what is called a "proforma invoice". basically a request for payment which states your terms. Always include a statement like "Untill payment received in full, title to all goods supplied remains with [Your company Name here].

    Once they pay, you issue a full invoice /receipt.

    If you are very clear about payment terms, title, returns etc. on proforma or invoice ducuments, it helps minimise misunderstandings further down the line.

    If at a later point you offer businesses credit, make credit terms very clear on all documentation, eg. "Payment due within 5 day of invoice date, interest will be charged on overdue accounts under Late Payment of Commercial Debts Regulations 2013."

    Best wishes for your new venture.
     
    Posted: Apr 25, 2013 By: Banksbroo Member since: Nov 7, 2008
    #4
  5. terranomade

    terranomade UKBF Newcomer Free Member

    3 0
    Thanks for that, I just thought for this one I would use the paypal invoice system as the company asked if they could pay that way... What sort of things should I put on the invoice terms and conditions? Other than the obivious Title of goods and payment terms ?

    Kind regards

    Dave
     
    Posted: Apr 25, 2013 By: terranomade Member since: Apr 25, 2013
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