To sack this client who is ALWAYS late paying?

[SapphireBattersea]

And to ask for any ideas of how to word the email please ?

I run a cleaning company and most of my clients are fantastic and pay on time

However one client takes the absolute piss. We do a couple of hours office cleaning a week for them so about £50 a week. Not a huge amount but it does affect my cash flow as my staff are paid weekly, and this company are always REALLY late paying usually 3 or 4 weeks. And this is after several emails from me chasing it which wastes my time

But enough is enough now and I've decided to get rid. I am new to being in business I have only been trading since late last year and have never had to sack a client! Any ideas how to word an email saying I no longer wish to work with them?

Can you instead attach a penalty to late payers, so they pay eg £60 instead?

YANBU

You don't have to write war and peace - just as from x date we won't be able to continue cleaning your offices. No need to get into a debate about it (unless you want to keep them on but get them to pay on time).

There is nothing quite so satisfying as sacking a client who messes you about. Not something to do lightly, obviously, but you will save so much angst

Keep it simple and just say you can no longer do work for them.

Is there a contract that states a notice period that either side can terminate the contract?

If so, just state that as per the terms of the contract I am giving you x time of notice. I have enjoyed working with you and with you all the best for the future. Yours Sapphire

I run a business and have sacked clients for this exact reason.

However while payment is the real reason, I tend to say that “we can no longer service your requirements” while you want to vent about their late payments it’s generally not worth it.

I also include late payment terms (as per government guidelines) and do charge them if payments are late.

A penalty is a good idea!

Ideally I'd like to keep them because the cleaners love working there as it's a nice environment and easy to clean 😂 but I can't accept late payments every time

Also I feel stuck as the cleaners have done 3 cleans this month so they will already owe me £150 plus what they owe from last month so I'm worried if I quit them they'll just bump me for this months money (if that makes sense)

What are your payment terms and what are their payment terms. For example the company I work for pay everyone on the last day of the month following month of invoice. This would make your company and ours incompatible assuming your terms are 7 days.

What I would do in your case is to write to them with a general reminder of your terms and conditions and payment terms. Preferably get them to sign something to say they accept them. You could also say that Under the Late Payment of Commercial Debts (interest) Act 1988 you reserve the right to charge interest of 8.5% plus a fixed debt recovery charge if payment is not made according to your payment terms.

Then the next time they are late send a standard little reminder stating that their account is now on hold and no further services will be provided until it is brought up to date. If that doesn't get them to start paying on time send a letter stating that due to an on going issue with late payment you are cancelling the contract.

Why not put the price up to a level that reflects the late payment? Then they can walk if they don't like it and you'll get paid at a level you can stand.

I mean without telling them why of course

Do you have written terms and conditions that you send to new clients?

The debt recovery charge is £40 by the way. (assuming they don't owe more than £1,000.

They are already in breach so you are within your rights to cancel or amend the contract. I'd make them pay in advance.

Agree with @Comefromaway - many firms will pay monthly. Can you invoice them monthly in advance and find out when their payment run is and coincide with that?

I've never heard of a business sacking a client. Perhaps I need to get out more, though. With the greatest respect as rude as they may be. They're doing you the favor by giving you their business not the other way round

Put up their price, and then give them a discount if they pay within a certain timeframe.

Baby spider I don't think they are doing her a favour though. The time she spends cleaning that office she could be cleaning a different one and actually being paid on time. My OH is a painter/ decorator and there's really nothing worse than people with holding money when you rely on it to feed yourself.
It's very inconvenient having to try and chase people down for money and costs man hours. So no they are not doing her a favour at all.

SapphireBattersea
If you invoice clients there are 2 ways to use a penalty system and the second is to put your prices up with a discount for prompt payment.
Then add a penalty for very late payment.

Fire them. There are lots of clients out there.

It probably is down to monthly payment runs. One monthly invoice will work better for them and you. Just inform them you are asking all your clients to bring themselves up to date with a full settlement and going forward you are changing your billing policy to monthly in advance and that you will send them a monthly invoice/breakdown on the 15th eg with payment due by the 25th (standard net 10 days terms.

Awwlook - the company I work for have on many occasins redused to carry out work for a client or potential client based on late payment/credit worthiness etc. It's a two way process.

Why don't you ask for advance payment? Also late payment fee - you are entitled to charge up to £40 for amounts up to £999 to cover your time recovering the debt (provided over 30 days late). I think that's the case anyway.

unfortunately, we are no longer able to clean for companies unable to keep to our terms and conditions regarding payment.
We treat our staff well, and feel it unfair to make them wait for their wages.

Why are they late paying though?

Most companies have set payment terms. The last company I worked for would only pay 60 days after they were invoiced, not before. What are the terms and conditions of your contract with them?

With the greatest respect as rude as they may be. They're doing you the favor by giving you their business not the other way round

They aren’t doing her a favour if she’s working for free.

I've never heard of a business sacking a client. Perhaps I need to get out more, though. With the greatest respect as rude as they may be. They're doing you the favor by giving you their business not the other way round

I wouldn't see it as one side doing the other a favour. One side provides a service, the other pays. It's a business transaction and credit is not provided. So if the client isn't paying, you stop working for them. I wouldn't keep working for a client or employer who decided it was OK to pay me late or not at all.