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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To get a bit pushy about payment

18 replies

Mumto123monkeys · 28/06/2019 10:27

I’ve started a new business venture, I supply a local business. I need the orders from them to get my business going.

I live in a very rural location, small population, the business is in our local village, know the owners and most that work there.

They are crap at paying me....I’ve asked for payment, get little or no response.
My trouble is I don’t want to make it awkward, i want to supply them. But I want my money, AIBU to say pay all outstanding or I won’t be supplying you. But I’d be shooting my self in the foot as I’d lose client. They’re my biggest client and they know it I guess. Everything else is one off. They have 2 orders weekly. I don’t want to damage my reputation as it’s new venture.

OP posts:
Brefugee · 28/06/2019 10:34

Do you have a contract? If so does it specify the payment terms? If you have, say, 14 days from invoice date (is that the same as delivery ate?) or something where there is a specific due date, and is this shown on the invoice?

When I worked in AR i used to send my customers (it was a massive multinational, to be fair) a summary of open invoices with due dates after month-end closing, with the request that they check it with their records and flag up discrepancies before invoice due dates.

It all hangs on what you agreed with the customer, tbh.

PiggyPokkyFool · 28/06/2019 10:36

Does the thing you supply have a raw material cost? If so, is it worth saying that if you don't receive payment you cannot afford the materials to make more? Hard to know when I don't know what your product is and no of course you don't want to shoot yourself in the foot. Good luck with your venture.

Original poster
Mumto123monkeys · 28/06/2019 10:38

On my invoice it has produce supplied in the week dated on it, and it has a payment due by date on it, which is 2 weeks from issue date. Which I agreed verbally with the directors. they’re outstanding on a few and several expenses too.

OP posts:
Original poster
Mumto123monkeys · 28/06/2019 10:39

@PiggyPokkyFool I bake, they supply ingredients mainly.

OP posts:
mermaidbutmytailfelloff · 28/06/2019 10:41

How about a two tier payment? So they pay x if they pay within say14 days, but x+£ if the payment is later than that.

I have a similar client and have invoices the clearly show the prices, and the date the cheaper price is valid for. It helps if you can talk to them and find out their payment processes, for example I know I have to get my invoices to them on a Monday for checking to go to finance on Thursday to issue payment which hits my account the following Tuesday. It has taken us a while to get there though!

ProfessorSlocombe · 28/06/2019 10:47

Moving forward, up your prices and give a discount for early payment ?

Sadly the bottom line is if they can get away with it, they will.

Payment (cash) on delivery ?

magicstar1 · 28/06/2019 10:52

They might be your biggest client, but if they're not paying you, then they're no use to you at all. You'll have to get them to pay what they owe so far, and have much stricter terms. One week perhaps, and no service if they're in arrears. Otherwise you might as well just go and hand them a few quid each week and cut out the middle man.

PiggyPokkyFool · 28/06/2019 10:55

When you drop off this week, could you have a list of what was outstanding and when it should have been paid to hand to them? Say you would really appreciate if they could settle it today or tomorrow at latest. If they see the some and how overdue some things are ( 4/6 weeks?) they may sortit. Given you are due expenses too then you are out if pocket not just time/skill wise but financially too.

PiggyPokkyFool · 28/06/2019 10:57

the sum, sort it , out of pocket
Good Lord - my skills are poor today.

MissConductUS · 28/06/2019 10:57

They're a borrower, not a customer at this point. Tell them it's cash on delivery from this point on until they're fully paid up again.

Merryoldgoat · 28/06/2019 11:02

A customer who doesn’t pay isn’t worth having.

As an aside I don’t understand the model - if you bake but they provide ingredients do you bake on their site?

Yabbers · 28/06/2019 11:09

My sister runs a business. Those who consistently don’t pay on time have to pay upfront or she doesn’t work with them.

So many smaller businesses have started taking deposits, which seems fair to me.

Original poster
Mumto123monkeys · 28/06/2019 11:49

@Merryoldgoat they pay my time, I bake at my premises. They supply ingredients as it’s cheaper for them to purchase or supply their own products.

OP posts:
Original poster
Mumto123monkeys · 28/06/2019 11:52

@mermaidbutmytailfelloff I will ring up today and see if there’s a better way.
If no success, then I think I’ll have to get tougher. Just not my style at all. But if I want my business to succeed, I guess take no s#*t.

OP posts:
Howyiz · 28/06/2019 13:42

It is not a business if you are supplying your time for free. Currently you are volunteering for them.

Coronapop · 28/06/2019 13:54

Since you want to keep the business I would suggest gentle pressure through repeated reminders via email or phone calls. I think I would also start to make subtle price increases. Have you factored in enough for fuel costs? I agree that offering a small discount for early settlement might be worth trying. Personally I would not be too ready to lose a client at an early stage of a business.

redexpat · 28/06/2019 14:31

Send them something in writing. If Oitstanding payment is not paid by x date then i will take legal action. And then take them to small claims court.

PiggyPokkyFool · 30/06/2019 15:09

@Mumto123monkeys How did you get on?

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