Paying things up front.

[Iom92]

Deliberately don’t want to give any identifying details so will keep this fairly vague.

We pay for a service (let’s use the example of cleaning) up front. I paid a lump sum in August to cover the period August-Christmas. We were sent the invoice for the period Christmas-Easter about 3 weeks ago but I haven’t paid it yet. AIBU to wonder why the cleaner (not a cleaner, but something equivalent) should leave bigger gaps between sending invoices, and that she could just send the next one in November, rather than in September when we only just paid a big sum in August?

I’m the sort of person that likes to pay a bill as soon as I get it, but I don’t really want to pay a big bill in August to cover sept-dec and then pay another big bill in sept to cover jan-easter. Why do close together?! Or AIBU?

A bill now, to cover Christmas to Easter seems premature UNLESS you have a reputation for being a slow payer or in any way a difficult client?

You say you just paid a bill in August, and that you are a fast payer... But how fast? How long did you sit on that bill before paying it?

If you can think of no honest reason why the bills are so close together, I see no harm in querying it with the "not a cleaner". It could be any number of reasons from "they've had a big bill come in themselves" to "admin error".

I’m not a difficult client that I’m aware of.

We don’t actually have to pay the bill in full, the invoice is sent with a percentage ‘deposit’ to be paid and then you can pay the rest weekly. I prefer just to pay it all in one go. I do the same with the kids’ dinner monies and pay in full for each half term so I don’t have to faff about every week.

So yes, that’s a good point, I paid the last invoice a couple of months after receiving it, BUT paid it in full and before it was due, if that makes sense.

Can you not pay it in January will that still not be on time for Jan-March/April. Anything could happen between now and then. I wouldn't pay my Jan, Feb and March's rent now.

I would pay it all in one go. What guarantee do you have that they won't go bust?

argh, I wouldn't pay it all

It's maybe so people don't forget to budget for it and don't come in around or after Christmas with "Oh you know how expensive Christmas are, I can't pay the deposit now".

Maybe they think you’ll pay it now and then they’ll have plenty of money to shop for Christmas. That’s the only reason I can think of to request money that far in advance.

To be honest, I'm not sure I'd pay in advance for a service covering up to 5-6 months from now! Anything could happen between now and Easter. I'd pay the deposit and then pay weekly from then on.

Is it school fees @Iom92 ?

Wanting to issue invoices in case VAT rules change?

It depends whether the understanding for upfront means 'for the whole period about to start now' or 'well in advance of the period being paid for'. Either way, assuming you hadn't been sitting on the August invoice for a while before paying it, however far in advance you agree to pay, the payments should be regularly spaced.

It's not on to give you two invoices in such quick succession. If they're still trying to weather the COVID-related devastation, I wouldn't blame them for sending out the invoice well in advance of expecting payment IF they sent an accompanying letter, clearly stating that it would really help their cashflow in these difficult times IF you were in a position to pay it very early, but with no obligation or expectation whatsoever.

That said, if you get paid too far in advance, it can simply delay inevitable financial problems and reduce the incentive to do a good job if the pay has already been safely in your bank account for several months - even make people begrudge being expected to work 'for free' (as it may seem), as the payment has already been long spent and forgotten.

What would happen if the person goes out of business this month - if you had paid 6 months up front and they had big debts with the bank and other 'priority' creditors?

Personally, I'd just file the invoice away and pay it at the agreed time. They've done nothing wrong by giving you plenty of advance notice of the invoice, but if they're expecting it to be paid now, they are very cheeky. You might want to just send them a quick message: "Thanks for sending me the Christmas to Easter invoice in plenty of time - I'll make sure it's paid promptly as usual, once it becomes due."

the invoice is sent with a percentage ‘deposit’ to be paid and then you can pay the rest weekly

Because a few months before is a reasonable time for you to reserve the service, if you don't want to reserve it, don't, it's entirely up to you. Obviously they will then be quite a lot less likely to have a spot, but that's why they're offering you the chance to reserve it with the deposit.

YABU.

From bitter professional and personal experience, I’d be extremely wary. Unless they have significant outlay to make on your behalf and it needs to be made with plenty of notice (eg, it’s your gardener and you’ve asked him to acquire and use a particular, expensive tool for you) then they shouldn’t be invoicing that early. As a general rule if the invoice allows 60 days for payment I’d invoice 60 days in advance of the work period and, if unpaid on the day the work period is due to start, refuse to begin work until payment is made.

Tbh it suggests they’re having major cash flow issues which makes me even less likely to want to hand over cash in advance.

It depends on what the service is I think.

Cleaning would obviously be unreasonable.

Exclusive exam tuition might be a different matter.

Also if they have to pay out to provide the service I’d have a different viewpoint.

We don’t actually have to pay the bill in full, the invoice is sent with a percentage ‘deposit’ to be paid and then you can pay the rest weekly.

Oh I missed your update. I do sort of agree with @sirfredfredgeorge in that case, depending on the size of the percentage. If it’s a token to reserve the service then it’s your choice to pay in full. If it’s sizeable then I do think it’s unreasonable of them.

If all you're paying for is their time, or their overheads in providing you with this service are low, then invoicing now providing that service next year would ring alarm bells with me.

They're about to go bust or they have a huge cash flow problem.

I wouldn't pay it until the very last day it's due.

When is it due to be paid?

It isn’t school fees. I think a pp’s suggestion of replying with “thank you for your invoice,I’ll make sure that it’s paid on x date” is a good one.

We also had paid upfront for the service prior to lockdown and then couldn’t receive it because of the rules. We never got that money refunded, which I don’t mind because it was one of those things, but we’re in a local lockdown area and I’m reluctant to pay too far ahead in case that happens again.

How could it possibly be identifying to reveal what a specific paid up front service is. Are you the only person in the country likely to use this service? 😂

How could it possibly be identifying to reveal what a specific paid up front service is.

Maybe it's for the ongoing maintenance of the roofs of the old fishermen's cottages to the west side of Padstow Bay, which are recognised by UNESCO for their unique use of a particular kind of ultra-rare thatch?! Or it's for tuition in the specific dialect of Scots idiom used only on Eigg?!

OP might be being a little over-dramatic, but equally, it could be something very specialised indeed.

@Florencex

How could it possibly be identifying to reveal what a specific paid up front service is. Are you the only person in the country likely to use this service? 😂

Sex dungeon machines servicing might be pretty niche😂

We also had paid upfront for the service prior to lockdown and then couldn’t receive it because of the rules. We never got that money refunded, which I don’t mind because it was one of those things, but we’re in a local lockdown area and I’m reluctant to pay too far ahead in case that happens again.

I think that's your answer, clear and simple. It's much, much, much easier to get the payment and then later "regret that we're not allowed to deliver the service under the current restrictions" (or just not turn up or say anything) than it is to pursue customers for that same service that everybody knows couldn't be supplied, during or even after the period of no service.

pursue customers for that same service

pursue customers for payment for that same service