Just trying to get a general consenus on payment terms.
How many of you are on 30 days ?
Are any of you on 60 day payment terms ?
and Dare I ask, any beyond 60 days ?
I dont know what the general consensus is now ref payment terms, is it still 45 days from day of invoice ?
All of my customers are asked 30days from invoice date, but they all pay when ready 
Most are not far out, but there are the extremes, from two customers who bounce payment straight back on receipt of the invoice, to one customer who insists on 90 days, but as he only rings when he’s stuck he pays the price.
I’m on 45 days from the end of the month.
Big Joe:
All of my customers are asked 30days from invoice date, but they all pay when ready
Most are not far out, but there are the extremes, from two customers who bounce payment straight back on receipt of the invoice, to one customer who insists on 90 days, but as he only rings when he’s stuck he pays the price.
you dealing with my customers 
Mine didn’t wanna pay at all 
I used to get paid on or around the 21st of the month and that included all outstanding invoices to the end of the previous month. This meant invoices from early in the previous month could be 7 or so weeks old but invoices from the end would only be around 3 weeks old. The money came regular as clockwork so it worked well.
28th of the month (following)
None/late payment = no further work until. & debt chasing starts the day after payment was due. NO exceptions.
had two years on 60 days with no bother, finished that and carried on, on the same basis with some new costomers and after grief getting paid will never do it again under any circumstances! if it’s 30 days from month end 10% goes on the price.
Tagoat:
28th of the month (following)None/late payment = no further work until. & debt chasing starts the day after payment was due. NO exceptions.
So if you started on the 1st June you wouldnt get pay until the 28th July ? for the whole of June or the first week so you are always in arrears ?
I think its a risky gamble stretching that long and providing credit to firms big or small whilst you as a OD struggle to finance yourself. My brother has just turned work away, he was due to start on the 1st June but wouldnt get paid until 30th July for June only then 30 days therafter, so you are always in arrears so in effect working 30 days for nowt until you leave or the inevitable happens and you get stung!
routier:
Tagoat:
28th of the month (following)None/late payment = no further work until. & debt chasing starts the day after payment was due. NO exceptions.
So if you started on the 1st June you wouldnt get pay until the 28th July ? for the whole of June or the first week so you are always in arrears ?
I think its a risky gamble stretching that long and providing credit to firms big or small whilst you as a OD struggle to finance yourself. My brother has just turned work away, he was due to start on the 1st June but wouldnt get paid until 30th July for June only then 30 days therafter, so you are always in arrears so in effect working 30 days for nowt until you leave or the inevitable happens and you get stung!
Basically yes, and if your on 90 days, you’re giving up to 4 months of free credit 
I’m like a lot on here maybe a little better, as 2 or 3 of my customers pay on the 20th of the month following invoice, I have one or two who take a bit longer to pay, but the jobs are priced accordingly, and one or 2 that I will never ever get paid for, which is the real PIA
routier:
Tagoat:
28th of the month (following)None/late payment = no further work until. & debt chasing starts the day after payment was due. NO exceptions.
So if you started on the 1st June you wouldnt get pay until the 28th July ? for the whole of June or the first week so you are always in arrears ?
I think its a risky gamble stretching that long and providing credit to firms big or small whilst you as a OD struggle to finance yourself. My brother has just turned work away, he was due to start on the 1st June but wouldnt get paid until 30th July for June only then 30 days therafter, so you are always in arrears so in effect working 30 days for nowt until you leave or the inevitable happens and you get stung!
Yes.That’s correct. But by the same token, work done AND INVOICED say on 31st June, is due on the 28th. July. So the average payment terms work out considerably less than at first appearence.
I haven’t yet come across a single regular customer who will pay in advance, unfortunately.
Cash flow is KING! And lack of, is what makes the first 12months trading so difficult for new start-up businesses, of any kind
Speedy, accurate invoicing (NEVER give cause for an invoice query either) & red hot credit -control are a must, in my opinion.
For work done this past week including this morning (Sat) I will have the cheque in my hand today fortnight or the Monday at the latest 
Thats one thing about the quarry work,the rates will be crap but at least you get paid in short order
Every Thursday, by direct deposit… One of the few advantages of being leased to one carrier.
Does no-one get paid upon return of CMR anymore?
That helps the cashflow if you turn straight round and keep out of the pub 
Wheel Nut:
Does no-one get paid upon return of CMR anymore?
The ones who still pay like that want to deduct a percentage of your hard earned for paying you your money in decent time. 
what about using a factor and you can have 80% of your cash in 24 hours
if your willing to stand the factors fees. the factor also has the responsibility for chasing payments
I’m not actually an OD but I my business is still in transport. I have 7 day payment terms. I start chasing on the 8th day. Some still take a couple of weeks, but as I bill one month in advance anyway they never really get that far behind. One client did fall behind but after the SCC envelope dropped through his door he soon sent the cheque!
weewulliewinkie:
what about using a factor and you can have 80% of your cash in 24 hours
if your willing to stand the factors fees. the factor also has the responsibility for chasing payments
But i think you will find if customer dont pay the factor,factoring company will take it back off you. 
toyed with the idea of factoring a while ago but to me it didn’t really suit the one man band setup, not enough money involved, but as i understand it the factorer takes on responsibility for retrieving any money owed which is why they want to vet any costomers and why they will only factor against companies they deem credit worthy.
paul b:
toyed with the idea of factoring a while ago but to me it didn’t really suit the one man band setup, not enough money involved, but as i understand it the factorer takes on responsibility for retrieving any money owed which is why they want to vet any costomers and why they will only factor against companies they deem credit worthy.
They normally take 5% as well, which for most would be a big hole in your profit, especially me when I was on tipper work, the classic ‘turn as much over as possible, and hope there’s a bit left for me’ scenario