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.

I have exactly the same problem with a couple of my clients.When it was cash or cheque payments when i first started my business it was far easier. It seems some people love the convenience of bank transfer and not having to think about having get cash ,but then still forget to pay.And like you have found repeatedly having to chase money stressful.As a small business reliant on lots of little payments it can cause real hardship. And my experience is the least organised and late payers are the ones in the biggest houses on professional salaries.It doesn't seem to occur to them how important it is.Would they go for a meal out or to have their hair cut and forget to pay?.My customers from more modest homes are consistently more reliable.
I've just arranged advance payments at the start of each month with one -her idea -with me prompting her each month and adjusting if she cancels or I'm away.She has a very responsible job but it seems arranging a quick bank tranfer for a service she says is invaluable is beyond her !

Sorry, I don't keep cash around, but I always pay my cleaner immediately. I find it much easier to just use online banking. I think you need to tell those who are late why they have to pay cash. There's no reason to pussy foot around their problem with paying. Some people are disorganised and found it very hard to pay their bills.

Not Unreasonable. I don’t do cash for much at all, but every payday I withdraw the amount in cash needed for my cleaner for that month, then put it in an envelope for each week in a drawer. In 5 years I’ve never forgotten and I live about 9 miles from a cash machine!
It’s your business, you can do what you like-as cleaners are so hard to find I doubt anyone will dare complain.
My window cleaner takes bank transfer which is a godsend as he comes infrequently without warning so I’d never have cash for him.
I hate tardiness with paying people, its so rude!

Haha didnt mean costumers was painting my nails and they were still wet. I never know when you should call someone a costumer or a clients? I know clients for beautiful therapists etc is clients when you provide a service and customer is buying something?

@C8H10N4O2 oh I'm similarly bolshie
OP just tell them cash only (due to late payers). They're threatening your livelihood with this lateness so screw their feelings. They can manage to get cash out at some point before you clean each week, being adults etc.

And the one who pays on time would tell the other one they were being a dick hopefully

Costumer again sorry 😂 my spell check keeps changing it to that.

I think you'll lose customers if you say cash only. Bank transfer in advance or cash on the day is perfect. But you'll have to decide how strict you will be. Will you really walk out of a job if they don't pay you in advance?

I'd tell your persistent offenders that you will have to switch to cash on the day if they keep forgetting because cash flow is a problem for you. Either they'll be mortified at failing to appreciate how important being late with that £30 is to someone on a low wage and sort themselves out, or they'll still be shit and you go back to cash for them.

Get a portable card machine and they can pay whilst you clean. Adjust your prices by £1 an hour to facilitate the cost of the machine. I'm only half joking

If it's regularly the same people drop them as clients! They'll take the piss no matter what form payment is meant to be in.

They KNOW how much and when to pay "forgot" my fucking eye! Would they get away with telling their bank that re mortgage? Or the council for council tax? Or the energy companies? Of course not!

Give the worst offenders ONE last chance not to do this. They do it again - bin em!

"I always like to give people the benefit of the doubt and I don't like offending people." You REALLY need to toughen up! Stop worrying how THEY'LL take it - they don't care about leaving you short or offending or inconveniencing you!

Late payers will ALWAYS be late payers regardless of method. Your only other option is to request (and stick to) payment in advance.

You really ought to do a basic 'contract' too with your t&c's on. Otherwise they can wriggle out of all sorts. Verbal contract not worth the paper it's written on - as the saying goes.

what about direct debit if its the same amounts every time?
put out a letter explaining that due to having various clients paying at different times you require payment by x date as you are having to remind clients. if payments are not paid by x date you will need to introduce a late fee for non payment as its your income you also have bills to pay

@Heedmove I wouldn't normally nitpick, just I'd hate OP to cut'n'paste it...!

Just a general text to everyone that you appreciate that bank transfer is easier for most clients and this is your preferred method of payment. However a few people are struggling to make a payment this way in good time and in these circumstances you will need cash in advance, receipts will be provided etc. Clear terms about time frames and thank them for their loyalty.

I don't have a cleaner. If I did, I'd rather pay by standing order or monthly invoice. Or both together - so any adjustments, weeks missed etc, could be dealt with on the invoice. If you missed a week I'd owe less for the next month, or you'd owe me the hours.

As it is, I think that unless you'd told me, I wouldn't know that you needed funds to be transferred same day. I might vaguely think that within 2 or 3 days would be fine - as what could be the difference, provided it's within the week? Given that lack of awareness of your tight margins day to day, I might take being chased by text as quite annoying and unnecessary and see it as you being a bit of a pain (because of course I'm going to pay), rather than me being late.

So, if you need transfers to be in advance, or same day, you do need to say so.

Cash would be a pain.

We have a similar but much smaller service that we offer for cash only. Recording cash is much quicker and easier than matching up bank transfers, when it’s a tiny income and on top of full time jobs for employers.
Not sure why people thinking you’re dodging tax is an issue. As long as you’re registered with Hmrc, complete an annual tax return and have records of your cash income and receipts / details of expenditure, does it matter what randoms think?

Could you tell them all cheque or cash to be left at their homes on kitchen work surface on the morning as bank transfer no longer an option for you? If you mention cheque too you're less likely to be accused of not paying tax. If there were fewer cancellations on both sides I'd suggest monthly or something.

This is appalling - yes go back to cash. I would be embarrassed to not pay the same day given the circumstances.

I can appreciate it's annoying for you if people don't pay on time. However I think not accepting bank transfers now they are so quick and easy for people to do, does run the risk of alienating your clients.

Unless you live above a bank, most people are at least 10 mins away from a cashpoint. I can do a bank transfer in under a minute.

I used to have a cleaner who only accepted cash. On one occasion I forgot to leave money for her. However my teen DS was home, so when I remembered I asked him to go to the cashpoint. Unfortunately his card wasn't working. Cleaner refused to give bank details so I ended up having to do a 10 mile round trip to her house that eve to pay her.

She is np longer my cleaner...

Just tell those who have been late a few times that due to that they’ll have to go to cash payments, or start paying it on the same day. Don’t penalise everyone! I pay my cleaner by bank transfer, 99% of the time it’s done just after she goes or later in the same day if not. I’d be annoyed if she wanted cash only as it’s not convenient. And people will think tax dodge in the back of their minds, whether that’s the case or not, if you implement it as cash only for everyone.
I wouldn’t worry about clients being friends and finding out that some can still pay by bank - if they pay on same day they could also do bank? Surely they’ll be embarrassed about their not paying so won’t really bring it up with friends

I’d go cash only but say to the good payers. “I’m changing my system to go cash only in general, because I’ve had some trouble with bank transfers, but since I know you're always really reliable about paying on time I’d be happy to make an exception and let you continue paying by bank transfer if that’s what you’d prefer”

My cleaner used to use standing orders, but changed to cash when some people were being difficult (not me - I’m an obsessive on-time payer!). It’s no big deal - I just leave the cash in an envelope when I go to work, and the cleaner comes while I’m out.

What a nerve some people have. My hairdresser only works in cash and once I forgot to get the cash out. But I apologised, went and got the cash and popped in through her door in an envelope. I got there before she even got home from her next client.

We are a cleaning service and have over 100 regular clients, most client set up a standing order as we require as payment is due upon day of service, but also we use a company called Go Cardless. You can send your client a link and then set up payments to go out in line with services provided.

This facility helped save my business from late payers!

I also agree that a good cleaning service must have their terms respected or they will take their service elsewhere.

We give clients 3 chances after late payments to set up regular payments or else use our payment facility - if they don't comply or communicate with us, we withdraw services and fill their spot from our waiting list.