Cheque over-due

[Ajax123]

Get on the phone on Monday and politely ask why they have not sent it. bear in mind they might have done so and it is stuck in the Christmas post. Companies are always slow to pay this time of year.

In fact in my last company we had a special campaign during December to get payments in before finishing for Christmas because we knew that if it was not in our bank by Christmas we were unlikely to see it before end of January. When you are talking large sums (several million pounds) this makes a big difference to the end of year accounts. We actually used ot offer a special discount to accounts settled early.

Not suggesting yo should do this but just to illustrate that payments are slow at Christmas cos it is in their interests to hang on over the interest added periods with the banks.

 

[Ajax123]

I'm still owed £500 from a large company for work that was invoiced in March - just put it down to experience now. The money would come in handy though.

That is not right IMO. Unless there is a legitimate dispute you should chase that money down. When I was credit conroller for a small readymix concrete company I used to send out letters threatening winding up procedings to companies who took the mickey. In 90% of cases we got a payment within the 14 day period in the letter. Big companies nowadays just seem to take the mickey out of small suppliers all the time. I don't think it is a case of them being deliberate about it much of the time but they are generally so disorganised that they don't now what is going on.

 

[CJ]

Pester away............on a daily basis if ness

 

[Peter]

That is not right IMO. Unless there is a legitimate dispute you should chase that money down. When I was credit conroller for a small readymix concrete company I used to send out letters threatening winding up procedings to companies who took the mickey. In 90% of cases we got a payment within the 14 day period in the letter. Big companies nowadays just seem to take the mickey out of small suppliers all the time. I don't think it is a case of them being deliberate about it much of the time but they are generally so disorganised that they don't now what is going on.

Think they owe a lot of subcontractors a fortune. It will be paid eventually as it's constantly being chased and they're legally bound to pay it, but it's just a case of sitting tight and not putting too much hope on it.

 

[merlecollins]

Chasing money is an awful thing to have to do - really horrible if you're not that way inclined, bt you have GOT to put that head on(like Wurzel Gummidge used to change his head) and chase - if they are taking the mickey out of you they'll soon get sick and pay and also they will know for next time not to mess on, coz you're the one that whinges all the time!!!

 

[Ajax123]

Quite a few of my customers employ "debt collectors" to do their chasing. One I know well says he pays them a %age of the value of the debt upon succesful collection. He puts it into their hands if more than 3 months overdue and no known reason to withhold payment. Not sure who they are or how vigourous they are but I guess if they only get pais on collection then they probably do the job. My customer generally talking sums of several thousands at a time and he gets a reasonable success rate

 

[Ajax123]

Quite a few of my customers employ "debt collectors" to do their chasing. One I know well says he pays them a %age of the value of the debt upon succesful collection. He puts it into their hands if more than 3 months overdue and no known reason to withhold payment. Not sure who they are or how vigourous they are but I guess if they only get pais on collection then they probably do the job. My customer generally talking sums of several thousands at a time and he gets a reasonable success rate

Having said that I think I mayt have just hit on another business opportunity I will wish I exploited.....

 

[jay]

comercial work over here takes norm 60 days to pay a new rule in some contracts is on completion + 60 days you will be paid 90% of payment and 10% of payment is held for 12 months as a retainer (in case of probs) i hope this doesnt catch on over there
:8:

 

[Ajax123]

comercial work over here takes norm 60 days to pay a new rule in some contracts is on completion + 60 days you will be paid 90% of payment and 10% of payment is held for 12 months as a retainer (in case of probs) i hope this doesnt catch on over there
:8:

10% retentions already in place over here on most contract work. In some cases it is more than 10%. This is repaid (not always completely) following 12month snagging. Most big companies use this as a means to screw sub contractors and I personally think it is absolutely wron and abhorent practice. One of my customers has just moved up from domestics to commercial but is saying he will not do much more commercial work because the retentions have taken over 80% of the profit out of it for him. If the contract has problems which can in any way be connected with his work he will ndoubtedly have to fight hard to get the money. I have been supporting him fully fro a technical stand point but never know if this is enough. The 90 days payment is a bit rough though.

 

[jay]

totally agree ajax123 an thats the reason i have stopped comercial work and mainly do domestic :8: my main concern is who holds the money