Where does the buck stop?

[vvaannmmaann]

I'm just off the phone with a long standing client.I was questioing the non-payment of an invoice I issued three months ago.
Seems they are waiting to be paid by someone else,who in turn is waiting for someone else,who in turn is waiting........you get the picture.
Anyone else in the same situation?

 

[simon field]

I'm just off the phone with a long standing client.I was questioing the non-payment of an invoice I issued three months ago.
Seems they are waiting to be paid by someone else,who in turn is waiting for someone else,who in turn is waiting........you get the picture.
Anyone else in the same situation?

This was until recently happening to us with a long-term customer but we've clamped down on it now. What other people's customers are doing shouldn't be any of your concern, especially if you've forked out for materials/labour/overheads to get the job done.

If you'd been 3 months late doing the job, how would that have gone down?

Do you expect to do more stuff for this customer VM?

 

[Esk247]

I'm just off the phone with a long standing client.I was questioing the non-payment of an invoice I issued three months ago.
Seems they are waiting to be paid by someone else,who in turn is waiting for someone else,who in turn is waiting........you get the picture.
Anyone else in the same situation?

Used to get it a lot with doing web/printed media design work for people.

They should have their account locked and you should be charging a few pence a day interest. Nothing shockingly horrific for them but just a gentle nudge that they need to pay you at some point within the next 30 days or they'll owe another few pounds.

They shouldn't be able to order anything else from you until the account is cleared as well.

 

[FIZIX Agency]

While I agree, your clients finances should be no concern of yours; they can actually become your concern as the clients finances will affect you and your relationship with the client.

Of course you need to clamp down on it and try to ensure it doesn't happen, however when it does; you basically have two options:

1. Wait it out and accept the delay
2. Get tough with the client

If a delay is short then, I would say that it probably isn't worth damaging a relationship over. Three months is quite a long time though.

So, if this client is normally a good client who you have a good relationship with and who you don't want to lose; just ride it out.

If getting the money in is the biggest priority and the client relationship doesn't matter, then at this point I would say that becoming tough is reasonable.

 

[Beachcomber]

Your not their bank and their cash flow problems should not become your cash flow problems.

the contract is between you and them, it is not with any other entity so they are responsible for payment regardless of how is or is not paying their invoices.

I'm always happy to be flexible with payments IF it is by prior arrangement - if they try to delay payment without prior agreement then they get 2 months to pay then it's off to the courts.

Sure, you might want to preserve a relationship but I've found that those are the kind of relationships not worth preserving - mainly because they know you can be fobbed off for a few months and it will happen again and again.

Final invoice, letter before action, court - can't afford to pussy about with finances.

 

[FIZIX Agency]

Your not their bank and their cash flow problems should not become your cash flow problems.

the contract is between you and them, it is not with any other entity so they are responsible for payment regardless of how is or is not paying their invoices.

I'm always happy to be flexible with payments IF it is by prior arrangement - if they try to delay payment without prior agreement then they get 2 months to pay then it's off to the courts.

Sure, you might want to preserve a relationship but I've found that those are the kind of relationships not worth preserving - mainly because they know you can be fobbed off for a few months and it will happen again and again.

Final invoice, letter before action, court - can't afford to pussy about with finances.

I don't think the BIB is fair; if a client has been a good client in the past then it does not indicate they will become bad in the future.

I've had the odd client in the past have to delay payment; one for quite a while and because they were good clients in the past I let it slide, they paid and it never happened again so I would have lost out had I took the cynical approach.

The OP will know their client better than any of us and is the only one who is qualified to make THAT judgement call about their client. Also importantly, it is whether or not they want to preserve the relationship & whether they can afford to, that will dictate how they approach it.

Taking the route of legal action is pretty much last stop saloon for your relationship; at that point it will be unlikely to continue. So if there is a desire to keep the client, you can get heavier without making that threat. You can sit and discuss the position with them and come to an arrangement that suits you both.

Figure out what you want to do with the client and whether you want the relationship (and whether this is a likely one off hiccup) and let that influence your process.

 

[Beachcomber]

The trick is to never be so reliant on any one client that you can't afford to lose them.

Don't stand for any deadbeats - I go way, way out of my way to help people out, but as soon as they take the mickey they're dropped like a hot potato with scabies.

 

[FIZIX Agency]

The trick is to never be so reliant on any one client that you can't afford to lose them.

Don't stand for any deadbeats - I go way, way out of my way to help people out, but as soon as they take the mickey they're dropped like a hot potato with scabies.

Not being able to afford to lose a client and not wanting to lose a client and being worse off for losing a client are three totally different things; though they can be related; they are not mutually exclusive.

While you may be able to afford to lose a client, it does not mean you won't be worse off it you.

My point was, you tarred this client as taking the mick and inferred that they will now be a bad client and debtor forevermore without knowing any background on this client or taking into consideration that there may be a legitimate reason for the delay in payment that could rectify itself.

I was merely pointing out that the OP is the only one who can make that judgement; we cannot, we don't know them.

The OP should sit down and make those decisions and can then figure out their course of action.

 

[Beachcomber]

I was merely pointing out that the OP is the only one who can make that judgement; we cannot, we don't know them.

The OP should sit down and make those decisions and can then figure out their course of action.

Very true - only the op knows the value of this client and what effect it would have on his business.

But in over 15 years I've only ever had 1 invoice go unpaid and have had more work than I can handle with no clients ever taking the mickey.

As is true for so many aspects of business, you need to set your rules and stick to them.

 

[simon field]

I think too many people place orders in the hope that the money will be there when it's time to pay - at best it's an educated guess, never a certainty IMHO.

If you can't afford to pay for it there and then, then don't order it.

Wasn't credit the whole reason we got into such a mess?

 

[Tej]

I think too many people place orders in the hope that the money will be there when it's time to pay - at best it's an educated guess, never a certainty IMHO.

If you can't afford to pay for it there and then, then don't order it.

Wasn't credit the whole reason we got into such a mess?

LOL.. I guess 95% of business would not be in business. there would be no need for bank overdrafts... companies could not be started without having a decent amount of capital... but.. if every business paid immediately... we could call this place... Shangri-La

Look at all the big boys... their whole purchasing ledger dept runs on the interest they save by not paying their suppliers in time.. ( let alone there and then )

With the amount of takings daily.. and not paying in time.. they use those funds to open even bigger and better stores.

So, in reality.. the smaller guys ( and even some big guns) have to wait and are grateful for each morsel that comes along..

IMHO

 

[simon field]

LOL.. I guess 95% of business would not be in business. there would be no need for bank overdrafts... companies could not be started without having a decent amount of capital... but.. if every business paid immediately... we could call this place... Shangri-La

Look at all the big boys... their whole purchasing ledger dept runs on the interest they save by not paying their suppliers in time.. ( let alone there and then )

With the amount of takings daily.. and not paying in time.. they use those funds to open even bigger and better stores.

So, in reality.. the smaller guys ( and even some big guns) have to wait and are grateful for each morsel that comes along..

IMHO

I know, I know

 

[vvaannmmaann]

Ah the power of UKBF!
The guy rang this morning to invite me to lunch! As he paid the bill he gave me a cheque to cover my invoice - plus an extra 5%.

 

[Root 66 Woodshop]

An excellent outcome indeed!

But... he only bought you lunch? miserable sod!

 

[vvaannmmaann]

An excellent outcome indeed!

But... he only bought you lunch? miserable sod!

He'll have to come back to me.I'm the only one in Europe who has what he needs!