non paying customers !

[Scott_1979]

how long is reasonable in your opinion to wait for payment?

Currently have around £1000 owing to me from various jobs. Some ranging a few weeks and some a week or so. Getting pretty sick and have sent a few emails without reply. I would just like to know what people do to escalate things and get people to actually pay without being to forward or threats. Any tips would be appreciated! Thinking I might have to physically go to their doors at this rate.

 

[Gasmk1]

7 to 10 days max only people i let pay after i leave the job is customers i know will pay by bank transfer or always send a cheque any that you have more than 10 days i would phone them and chase them up, any that refuse to pay just sell the debt

 

[townfanjon]

Its a tricky one Scott , if its a customer you know and trust it isnt a problem , its the new ones that are the worst . I tend to send a very polite "reminder text " , after a 2/3 of those they get a visit .

 

[Harvest Fields]

I give 14 days and chase when I have time

 

[Scott_1979]

Yeah I'm thinking 14 days is the cut off then I will have to turn up at their addresses. Time to get a bit harder with it and not trusting people so much. anyone use the apps to take card payments on your phone?? Might be a way to go with one off jobs

 

[Old Account]

7 days max. You need to understand people expect getting things done on time and flawless, so you can expect that they pay after 7 days too. But as mentioned above, you can send a reminder politely. A lot of people trying to stretch that as long as possible in hope you will forget. I think 7 days a long enough to sort out the payment. Everything above that should be just with agencies etc..

 

[Chuck]

how long is reasonable in your opinion to wait for payment?

What does it say in the Terms and Conditions that you got the customer to agree to and sign before you started work?

In the absence of an explicit agreement that 30 days is what the law defaults to:

Invoicing and taking payment from customers: Payment - obligations - GOV.UK

The same website includes details of what must be on an invoice for it to be valid. Don't fall into the trap of getting to court and have the customer get the case dismissed by arguing that they have not yet received a valid invoice.

IMO, every small business should get their accountant to review their T&Cs, invoice format, collections procedures, etc. from time to time. The risk of being put out of business by 'cash flow problems' is too high to guess at this stuff.

Adding a small (say 2 or 3%) prompt payment discount for settlement received within 10 days can work wonders.

 

[king of pipes]

I expect final payment within 7 to 10 days and i collect stage payments as i go on larger jobs that way your only risking a smallish amount . Cheers Kop

 

[Boilers]

Kills me this does. Do they go sainsburys and then say I'll pay you in 14 days.!!!!!!!

 

[Best]

I wouldn't want to admit how long I have been out full payment of some jobs.
I heard it said that if you have to call at a non paying customers house hoping for money, then try to call when they have guests there some evening.

 

[Harvest Fields]

I wouldn't want to admit how long I have been out full payment of some jobs.
I heard it said that if you have to call at a non paying customers house hoping for money, then try to call when they have guests there some evening.

If he is only outstanding £1000.00 ( no insult intended) then I'm guessing it is for lots of little jobs. Who gets customers to sign agreements for the repair of a tap washer?

 

[jtsplumbing]

Quick phone call or text (7 days) saying your cheque has not arrived have you sent it to the correct address, or I'm in your area tomorrow I will pop in and collect payment,

 

[oz-plumber]

Simple answer - get credit card facilities.

There is no point in being in business for yourself if you can't take a credit / debit card payment.

The facilities cost you, but you have to make allowances in your pricing.

Would you rather pay for the facilities and anywhere between 1% & 4 % transaction fee to have prompt payment.

The time you waste chasing people for small amounts hardly makes the job worthwhile, so get payment on completion the easy way - credit / debit card.

 

[cr0ft]

I'd agree with that 100% OZ. I wish I'd done this sooner. The company we used charged us 0.25% for debit card transactions and 0.9% for credit card transactions. Monthy terminal fee of £25 for the terminals which worked on all networks so very rarely lost signal when taking payment. Ok, so extra costs to pay but how much of my time did I spend each month chasing people for payment? About 2 hours normally, instead I could have been doing a couple of boiler services and earning more than enough to pay for the card machines that month.

Also a lot less stressful too, never have to worry about someone stinging you.

 

[SimonG]

Put their name and address on a postcard. Big red 'OUTSTANDING MONIES' and then the amount, what it was for, your details and stick it through the next door neighbours letterbox.

I changed my t and c's on estimated jobs. Payment immediately on completion or plus 5%. Stops the 'oh I'll post you a cheque', they soon find it when I tell them to add on the 5% then.

Cash flow is king

 

[hammers4spanner]

I done a job for a barrister who deals in exactly this other week.
He said if you invoice and they delay payment . Send a reminder text, if they respond then they have become into contract with that invoice and terms

 

[Chuck]

I done a job for a barrister who deals in exactly this other week.
He said if you invoice and they delay payment . Send a reminder text, if they respond then they have become into contract with that invoice and terms

You'll probably get a bill for 350 guineas for that advice through the post next week...

 

[quality]

I learn`t my lesson a long time ago from builders on a job that was extended by other trades. They took me for about £4500 they went bankrupt and I never saw a penny. The sheriff from the high court came and knocked on my door for monies owed by them> I will say they did not get anywhere.

 

[ukplumbersusery]

If he is only outstanding £1000.00 ( no insult intended) then I'm guessing it is for lots of little jobs. Who gets customers to sign agreements for the repair of a tap washer?

I know writing out a quote for replacing a tap washer is a pain but remember if you are taking an order on a customer's premises it is a legal requirement to provide in writing their right to cancel. If you do not provide this information the customer can legally turn round and refuse payment and the courts will back them. I would just increase the charge to include writing out quotes and invoices.

 

[Harvest Fields]

I know writing out a quote for replacing a tap washer is a pain but remember if you are taking an order on a customer's premises it is a legal requirement to provide in writing their right to cancel. If you do not provide this information the customer can legally turn round and refuse payment and the courts will back them. I would just increase the charge to include writing out quotes and invoices.

That is not what the post I was on about said. It said to get the customer to sign an agreement. Quoting is different. But to be honest if I can fix the job onsite then the quote is always verbal anyway.

 

[ukplumbersusery]

That is not what the post I was on about said. It said to get the customer to sign an agreement. Quoting is different. But to be honest if I can fix the job onsite then the quote is always verbal anyway.

Sorry I was generalising. This only applies to consumers but since the Consumer Rights Act 2015, if you take an order in someones home there must be a written pre contract document with various legal requirements. The following is from the .gov.uk website "If you don’t tell the customer about their right to cancel, you could pay an unlimited fine and go to prison for up to 2 years." I bet most tradesmen contracts break the law but the key message was that customers in the know can legally avoid paying if there is no written pre contract document. If anyone wants to know the links to the details then just ask.

 

[Bimble]

I'd agree with that 100% OZ. I wish I'd done this sooner. The company we used charged us 0.25% for debit card transactions and 0.9% for credit card transactions. Monthy terminal fee of £25 for the terminals which worked on all networks so very rarely lost signal when taking payment. Ok, so extra costs to pay but how much of my time did I spend each month chasing people for payment? About 2 hours normally, instead I could have been doing a couple of boiler services and earning more than enough to pay for the card machines that month.

Also a lot less stressful too, never have to worry about someone stinging you.

I have been thinking about this for a while. Seems like the best solution. I spend too much time chasing the same slow payers. In any case I don't like giving out my bank details to everyone (after a Nigerian tried to rip me off a while back). The charges you mention are lower than any I have seen to date. Which company are you using?

 

[cr0ft]

Chip and Pin Machines, Card Machine Payment Solutions | Card Cutters

 

[Scott_1979]

Chip and Pin Machines, Card Machine Payment Solutions | Card Cutters

Interesting, I'll take a closer look later on

 

[Bimble]

Chip and Pin Machines, Card Machine Payment Solutions | Card Cutters

Thanks for this.

 

[pjohn]

Put their name and address on a postcard. Big red 'OUTSTANDING MONIES' and then the amount, what it was for, your details and stick it through the next door neighbours letterbox.

I know you're only joking, but please nobody do that, it's very much against the law.

The other option is to look into factoring companies, they pay you up front (charging a small percentage) and then they are the ones who chase for payment if none is forthcoming.

 

[SimonG]

Not joking at all. I'd also love to know which precise law posting something through the 'wrong' letterbox contravenes?

 

[pjohn]

Not joking at all. I'd also love to know which precise law posting something through the 'wrong' letterbox contravenes?

Harrassment, the argument that you put it through the wrong letterbox would not hold water as you'd worked at their property.

Harassment by creditors

The actual law that covers this is the Administration of Justice Act 1970

http://www.legislation.gov.uk/ukpga/1970/31


(40)A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract, he—

(a)harasses the other with demands for payment which, in respect of their frequency or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation;

 

[SimonG]

I'd still do it. Somebody else dropped it off for me.

If the custard was an obnoxious pratt I would just sell it to the leg breaking squad.

 

[pjohn]

I'd still do it. Somebody else dropped it off for me.

If the custard was an obnoxious pratt I would just sell it to the leg breaking squad.

As you wish, just wanted to point out that it's generally a bad idea that can get you in hot water

 

[SimonG]

Doubt it, but would be typical of this country that you could be classed as harassing somebody whilst chasing your hard earned coin.

Info is stored and shared. Unofficial customer blacklist.

 

[pjohn]

Doubt it, but would be typical of this country that you could be classed as harassing somebody whilst chasing your hard earned coin.

Info is stored and shared. Unofficial customer blacklist.

It's a pity you can't credit check them before starting work and buying materials, because it's a huge wodge of cash if they don't pay up, but guess you'd have little to no business doing that ... but look into factoring companies for bigger jobs, or where you think they may be a problem payer, but you have to offset that against their charges.

Should add, just had our en-suites redone (plumber finished today) and I'll be transferring the cash as soon as I get his final invoice in, some of us pay our debts on time, and I've been self employed before and know how much a non-paying customer can hurt.

 

[SimonG]

Cash flow is king. Most customers pay via internet.

 

[Best]

I would call it accidental humiliation.
Getting someone to post it for you, but they made a mistake and posted in wrong door. Or 'accidently' calling at the customers door when they have visitors.
Am sure we all have at some time been spoken to about an unpaid account at a merchants in front of other customers. It happens.

 

[RJA]

Would it help if you could receive card payments instantly without needing a chip and pin machine? Thinking of an idea for no monthly fee etc...