Harry Monk:
By drivers, for drivers, my arse. Maybe once upon a time.
the problem is too many lawyers reading !!
Denis F:
Harry Monk:
By drivers, for drivers, my arse. Maybe once upon a time.the problem is too many lawyers reading !!
So why start a thread? As we have been told time and time again rumors can seriously damage a company and land the website’s owners in court for allowing them to be spread.
Yes you haven’t named the company BUT you could have just asked:
“How long does it take you to get paid and pay? How many days credit do you agree with your suppliers or subcontractors?
Please no names, as credit agreements can vary from person to company.”
Its reeds. They do comics and websites for saddos…
Rikki-UK:
Doing a little research for something that may go into print, so please no names - a little bird tells us that a certain user of subbies is going to go from 30 days to 60 days -but is offering a 30 day payment from invoice for a 5% reduction so what is the average most hauliers expect - and no I am not going to name the company unless I can confirm what is only rumour- but it is not a haulage company
This is something what is common in the market, many bigger players in the market have this possibility.
Mainly the bigger Multi nationals are always looking for longer pay terms.
Standard seems to be “end of the month + 30 days”
But if you have let say a 10.000 loads to move every month than even a 5 day longer payterm can make a hell of a difference.
It’s all about cashflow, if you can get your customers to pay before you need to pay, you’re defiantly on a winner.
My old Bossman when he started with his company, had to load the truck, and go than in the office to get his paperwork and pay.
He would than do his deliveries.
Was all on trust that he would deliver clean, you wouldn’t find that nowadays.
foxy stars:
goaty - don’t get me wrong am no expert on this matter but if you do a job you don’t seriously expect a person to accept less than the sum on the invoice or maybe you won the lottery and couldn’t give two stuffs if you gets paid or not cos you get more than enough in interest to keep your rig on the road…i was just merely making a point that us mere mortals can’t afford to lose anything let alone 5% of a figure that we were being squeezed to produce in first instance…
Words of wisdom 
5% for weekly payment is extreme, and a whole other story, but to lose 5% to keep the original apyment terms in place means it’s time to go elsewhere 
I think firms that do this early payment thing are best avoided, they offer quick payment and therefore cashflow and ■■■■ you in until you cannot afford to go elsewhere, then they start with their 5% ■■■■■■■■ and you’re trapped…until the nice man from the baliffs comes and takes your lorry and puts you out of your misery 
During one of my dreams I read that the government, a government were going to bring in a law that would stop these extended credit terms to small businesses. I also seem to remember it was in the Comical Motor. The date was in Roman Numerals though.
Wheel Nut:
During one of my dreams I read that the government, a government were going to bring in a law that would stop these extended credit terms to small businesses. I also seem to remember it was in the Comical Motor. The date was in Roman Numerals though.
you been doing a bit for the Columbian Export market again Malc? 
Paid 30 days EOM working a month in hand. At the end of January ill get the money for Decembers work. No problem for me as 50-75% of my diesel goes on my customers diesel card for which I pay £5 a month admin fee.
Harry Monk:
Exactly, it’s a shame Rikki is too timid to name the company in question rather than starting a thread and leaving everybody guessing.By drivers, for drivers, my arse. Maybe once upon a time.
I wrote the original post quite carefully- but did make it clear that the company involved wasnt a haulage company - I would have liked and got an idea of what terms most small contractors are on, as it happens in this case the “subbies” are not hauliers and was hoping for some comments about factoring, as this particular company has offered 30 days to its contractors that use factoring- for 5% off invoice ( I left that off the original post deliberatly in the hope some one would volunteer it , if it happens) and put the others on 60 days By the responses it seems that this particular idea hasnt yet made it to our industry - the person that raised the concept with me uses factoring and said he believes the reason is that factors will chase the bad/slow payers debts far harder than a sole contractor.- I have no idea if thats correct, but its what he told me
I termed the post in this way deliberatly to see if anyone had come across this in road haulage- nothing more sinister than that 
-I did make it hopefully clear this was a fact finding post.
I still wont name the company- but will tell you its involved it industrial maintainence on a large scale
shuttlespanker:
Wheel Nut:
During one of my dreams I read that the government, a government were going to bring in a law that would stop these extended credit terms to small businesses. I also seem to remember it was in the Comical Motor. The date was in Roman Numerals though.you been doing a bit for the Columbian Export market again Malc?
Yes. I am Carryfasts dealer, innit
Rikki, you mention factors
Evil things, the interest rates they charge sound quite reasonable, until you work it out the same way all other interest is charged, i.e. APR and the annual rates for factoring are not dissimilar to a loan shark 
They do help with cashflow, but and this is a big but, my opinion is if you need help from factors to take on work for a certain customer, youre not ready to make the leap in the first place I base my opinion on experience too, I used a factor so that I could work for a customer with 60day terms, with five lorries I had quite a lot of payout before I got my first cheque, so factoring seemed a good option, it worked out ok for me, but I only factored that one customer and then used them on another customer who was growing very quick, I was worried that they may be running before they could walk.
As I said it worked out for me, but it is robbing Peter to pay Paul and in hindsight I wouldn’t do it again, by the time I’d paid out all the charges I wasn’t earning much more than Gregory type rates for a direct customer, it was only through scrimping and scraping and a bit of skullduggery that I got away from factoring, it’s almost like the firms that offer you quick payment and a fuel card, once you get sucked in, you have a hell of a job breaking free
Again, with hindsight, had I saved enough to be able to run off my own back until I got paid, I would’ve made a lot more money, but then the opposite side of that coin is I may have missed an opportunity that would never arise again, so it needs very careful consideration before you make the decision, don’t be blinded by the cashflow benefits and the thought that a factor can chase money better than you, they can, that’s a fact, but if they don’t get paid they will come after you to get their money back and they’ll charge you a fortune in interest for the priveledge, either that or you pay through the nose for the payment insurance, they’ll get money out of you one way or another, after all, that’s their business model, they’re the business version of a payday loan/pawn shop and they don’t mess around when it comes to getting their money 
I was on 30 days EOM with My main customer other varied 45 EOM & even up to 60 days EOM with some, I remember a time when 90 days EOM was quite normal & have heard of huge conglomorites paying out twice per year.
I enquired to the bank about factoring once as I had 60k outstanding & was advised by them that unless I had a T/O of over £250,000 it was’nt worth getting involved in & thus I never bothered.
I had a company change there terms on Me after a takeover I spoke to the bank about this & as the company was a PLC they advised Me not to worry & I got an overdraft in place for a 6 month period.
I remember Denholms paying out on CMR for 10% I never bothered Myself 30 days EOM was ok with Me, it did make Me wonder about those that did, £1900 back from Italy becoming £1710 is pants imho.
I would have the company Rikki does’nt mention checked out & see what comes up, if You’ve been trading long enough them extending there period of payment should’nt be too painfull.
Mr Monk is the same as Me, bill arrives cheques sent by return, I was never LTD & only a sole trader & I had accounts off Volvo etc with no problems at all, if You pay Your suppliers quickly they tell others & You become a no risk customer, it always worked for Me anyway.
I keep hearing horror stories off My friends in road haulage every time I ring The UK, I hope it picks up for all you still at it, I’m happy I got out when I did, a good friend & successfull haulier recently told Me My timing was perfect…
Rikki-UK:
I still wont name the company- but will tell you its involved it industrial maintainence on a large scale
Oh so that’s ok then? Because they aren’t a haulage company you feel free to start a probably wrong whisper campaign about them?
As we have been told on this very forum some people will mishear the limited information and then things start to go ■■■■ up.
Probably one off the supermarkets. … every littles helps I suppose.
Rikki, Factoring has been around in all forms of business for many years, a lot of driving agencies use factors to get paid quicker so they can pay the drivers
but, as NMM said, if the factoring company does not get paid for whatever reason, they will come after you for the money back
Rikki-UK:
the person that raised the concept with me uses factoring and said he believes the reason is that factors will chase the bad/slow payers debts far harder than a sole contractor.- I have no idea if thats correct, but its what he told me
That’s as maybe, however anyone signing up with a factor should read ALL the small print very carefully. If they can’t get paid, they will take the payments already paid on trust back. (or withhold other payments until things are leveled up in their favour).
Driveroneuk:
Rikki-UK:
the person that raised the concept with me uses factoring and said he believes the reason is that factors will chase the bad/slow payers debts far harder than a sole contractor.- I have no idea if thats correct, but its what he told meThat’s as maybe, however anyone signing up with a factor should read ALL the small print very carefully. If they can’t get paid, they will take the payments already paid on trust back. (or withhold other payments until things are leveled up in their favour).
^ This.
I used a well known firm, that rhymes with Bibby.
Bloody nightmare to deal with in the end. IMHO they don’t chase slow payers as hard as you would yourself. They get paid whatever or they don’t release their debenture.
If I had a Delorian, I’d do the other thing.
Has anyone held back goods due to unpaid invoices?
Has anyone ever threatened to hold back goods?
It’s in the RHA regs stating that you can. Or at least it used to be.
Sat on a job once til that and previous jobs were paid. Not officially Lien though.
each company i know that started to factor their invoices are no longer trading, so for me it sounds more like a death nail when someone says they are factoring.