To think they are delaying Payment on purpose

[Joyfulldeathsquad]

We started a new business up in October and it's bedn ticking away ok, paying for its self with enough for a little wage.

We have a few clients but one main one where we get the bulk of our custom from. At the beginning they paid upfront for a considerable order and we completed in time they have done this twice. All good. The last order they wanted we already had the stick in so when dp delivered they only paid £8000 instead of the £20000 they owed, with the promise to pay the outstanding the following week. These guys are a massive company and we will probally be their smallest supplier.

Any way the date of payment come and went. so dp rang and the said they would pay on the Wednesday (5 days late) No payment. Then they said it would be in by Friday as it was a BAC transfer and would take a few days.

Friday - no payment . Dp chased it up and was told the they couldn't pay the invoice as the boss had gone away skiing and hadn't agreed it. Def payment on Monday.

Monday - no payment. Guy that does the payment off sick. Will be in next day.

Tuesday - guy still off sick ( this is a huge company so I can't believe that no one else can pay it)

Wednesday - guy goes home early for parents evening . Dp now calls bids directly and is offered a cheque . Dp declines as money wouldn't clear till after weekend and it's needed now.

Thursday - dp manages to get hold off accounts guy and is ASSURED money will e in at 5:30 'it's been sent off'

5:30 still no money. Dp calls guy and guy is in car with boss on the way to Scotland. He has passed it in to someone ekse that hadn't processed it.

This morning Dp actually went to the office and was once again assured it would be paid . Still no word as yet.

I'm shitting myself as this could really fuck us up. Dp ever the optimist is saying they will pay as they have been good payers in the past plus they are not short of money eg. Just sold have their company for 7mil.

They are mugging us off aren't they

Oh halleLUjah!

Hurray hurray that it's come through.

I'd like to tell you that it gets better as you grow but it doesn't. The amounts just increase. We have some seriously blue chip customers and we still get messed about.

Two things we were told early on: a good customer is one who pays... doesn't matter how big they are, and there are no friends in business. Contacts, even personal friends, will always prioritise their own company.

Is your industry one which will stand a deposit system? That can be a godsend.

Be cautious about jumping into factoring. Yes it'll sort your cash flow, but it's tough to get out of again and you'll find that a lot of companies won't trade with you if you do. It is the sign of an unstable company and factoring companies can be really obnoxious in how they deal with people. They don't and won't care about pissing off your customers, because it's not their business.

Well that's a right joke isn't it, DoJo? (Though please don't think I'm shooting the messenger )

Two of the worst-paying clients I had before retirement are on that list - one in particular who told suppliers they'd take 60 days to pay ... then increased it to 90 ... then announced they'd deduct 10% from every invoice simply because they felt like it

Maybe they've got a lot better very recently - and maybe pigs will fly

Puzzledandpissedoff

It's not a foolproof system, but it is improving - the maximum payment period has just been reduced, and given that it is a relatively new scheme, any adjustments in favour of the creditors are some sign of progress. There are calls for it to be a compulsory scheme which would have stiffer penalties for failure to comply, but it's something to be worked up to I think. It does at least show that the issue of habitual late payment is being recognised, which is half the battle I think.

I don't know which industry you work in, but could you implement a deposit/milestones/final payment system? With you not lifting a finger any more if the next stage isn't paid.
This will minimise your vulnerability.

It does at least show that the issue of habitual late payment is being recognised, which is half the battle I think

I completely agree, DoJo, and I don't doubt that most who've signed up are probably well-intentioned ... it's just that I worry about the potential for abuse if any see registration as a way to sucker in suppliers who are maybe a little bit too trusting

Maybe I'm just a suspicious cow but as someone who's also been burned I'm well aware it wouldn't be the first "scheme" to have been abused