To stop allowing my clients to pay via bank transfer?

[BusinessMama]

I am a single mum and self-employed cleaner and have been allowing some of my customers to pay via bank transfer. This is fine for some clients as they pay straight away, but others don't.

I frequently find myself texting my clients to remind them to pay and some don't pay for days! I rely on this income to pay my bills and it is really raising my anxiety when I have to wait 3, 4 sometimes even 5 days because someone 'forgot' to transfer the money.

Would I be unreasonable to introduce a blanket ban on all bank transfers? I am considering sending a text message at the start of the May half term (most of my clients are off for the week, as am I), to tell them that I will no longer be accepting bank transfers, cash only.

I do feel bad for the ones that do consistently pay on-time via bank transfer. The issue is many of my clients are friends with one another, so I couldn't say to an unreliable one 'cash only' and let their friend continue with bank transfer IYSWIM.

Is the amount they owe you variable each week?
If it's a standard amou t what about a standing order?

It's a standard amount. The trouble with standing orders is if they cancel one week, or I cancel, it all gets very complicated hence why I've never allowed them in the past. Sometimes cancellations are very last minute as children are ill, childcare lets me down etc.

I would say there are two options - standing order, which they are responsible for changing if there is a missed week or cash.

I think if they are someone who forgets to do a transfer they will also forget to bring cash.

Or change it to payment prior to services?

I used to have a mobile hairdresser who moved from cash to bank transfer and I really didn't like it because it was extra hassle for me to remember to pay her .

If I was your client I'd rather pay you in cash so wouldn't mind at all

How about PayPal? You could wait while they do it (just to make sure it goes through ok). I pay my window cleaner by PayPal and he's happy with that.

I’d introduce a fee for late payment.
Payment due by X date or there will be a charge of Y amount.

You’re running a business. Stop taking letting people take the piss out of you.
Some of them might have a grumble but if your service is good then you won’t lose them.

What about insisting that customers who want to pay via bank transfer do so before you start your clean.

I've considered introducing a late payment but as I said I rely on this money to pay bills & rent, so I am very wary of doing so.

I used to only accept cash and only very recently allowed bank transfers, its been no end of hassle. Constantly having to keep track of who has paid/who hasn't, texting about late payments almost daily.

I want to just say, 'cash at the end of the cleaning or unfortunately I won't be able to come back next week'.

Good cleaners are like gold dust where I live. I don’t see any problem with letting some clients carry on paying by bank transfer (the on time ones). If their friends find out, all the better - you can tell them that your policy is to only offer bank transfer option if it’s guranteed to be on the same day.

Cross posted. If it’s a hassle, go back to cash for everyone.

Must admit that I'd be a bit irritated if my cleaner went from accepting bank transfers to wanting cash as cash is such a pain these days. My previous cleaner used to want cash and it was annoying having to try and dash to a cash machine when I was really busy at work. My current cleaner emails me an invoice at the end of each month and I pay by bank transfer.

Why don't you put your prices up by £1/hour but offer a 10% discount for clients who pay by bank transfer within 24 hours of you cleaning for them.

Totally get where you’re coming from - but as a person who never has cash - I imagine you’ll run into problems with people forgetting to get the money out (probably the same ones who forget bank transfers tbf)

I don't really understand how it's that difficult to remember to be honest. They are expecting me to come every week, on the same day, at the same time. I don't understand how they could forget to do the bank transfer, or get cash out on a Sunday evening in preparation.

What are the terms on your invoices?

If someone said to me "cash only" I would be wary.
Why do you need me to pay cash?
What proof is there of the transaction?
At least with a bank transfer there is an audit trail.
You can accept both and if your clients talk to each other they will soon find out why one can pay by bank transfer and the other can't!
Paypal sounds good too.

Simple message

Dear clients
Thanks for your loyal support . Unfortunately I have to transition from bank payments to cash only . Please ensure that you have the cash payments available w/c X
Apologies for any inconvenience and thanks for the understanding .
Beat regards cleaner

Could you introduce an penalty for late payments? But rather than the penalty being a late fee (which you may then still need to chase), the penalty could be the client will be required to pay in cash from then on? So 3 (for example) late payments will result in cash only. Sort of an 'X strikes and your out' type of thing.

That would resolve the issue of still allowing prompt payers t use bank transfers.

Tell all your clients that from now on you need payment on the day, either cash or bank transfer. And that if you have to chase them up again, then you will only accept cash from that person in the future. If they then “forget” to get cash out, tell them you’ll need it when you arrive before you do the work, no money = no cleaning.

It’s not ok for them to avoid paying you.

I provide invoices and/or receipts on request of my clients. When I do send across a copy of an invoice, I don't have 'terms' as such. Just the amount owed, dates of work etc.

To be honest, to answer onlyjustme, another reason why I prefer cash is for administration reasons. When I fill out my cash book it's a lot easier to do it on the day of the work and much easier to be organised. Rather than payments being received late and on different days, it makes it much harder logistically too.

Why don't you get a card reader? There are loads available now for small businesses. I have a SquareUp but there are others available (such as PayPal). Mine cost £39, you link it with an app on your phone and then you pay 1.75% per transaction. You could always increase your prices slightly to cover costs?

I always receive a invoice and payment deadline, our dog walker is the same. I then pay by bank transfer. Never have cash on me.

I'd put a warning letter out saying that bank transfers must be made within 24 hours of cleaning being done. If payments continue to be late unfortunately you will only be able to accept cash.

Be careful that your trustworthy clients don't think you are trying to dodge tax.

Also perhaps start leaving invoices after each cleaning job with payment deadline.

I wouldn't do PayPal. From your point of view, bank transfer is one of the safest ways to be paid.

Could you get people who want to pay by bank transfer to pay in advance? Or do it whilst you're there? You should get almost all transfers immediately these days.