Advice re. invoicing

[UnaCorda]

I work on a freelance basis for an organisation. Most of my payment comes from clients found for me by the organisation, but some of my work is for the organisation itself and in this case they pay me directly. The organisation then takes a percentage cut from the work I do for clients which is billed in arrears.

When they invoice me for their cut they expect payment within a fortnight, yet on most occasions it takes them a month or several months to pay me. Needless to say I'm getting a bit pissed off with this double standard.

Am I within my rights to delay payment to them or could I get myself into hot water? Should I make it explicit why I'm delaying payment and, if so, how should I word this so as not to sound petulant?

Thank you.

You can try but what terms did you agree to pay and what terms did you agree to let them pay ?.
But you can definitely say well until you pay me and most definitely if it's overdue .

What reasons do they give for delaying the payments? So you chase them?

What are the terms on your invoice?

*do you chase them

@islockdownoveryet

You can try but what terms did you agree to pay and what terms did you agree to let them pay ?. But you can definitely say well until you pay me and most definitely if it's overdue .

As far as I can remember I didn't agree any terms relating to how long I had to pay.

I gave them three weeks on my invoice and they were still a week and a bit late.

@Chanjer

What reasons do they give for delaying the payments? So you chase them?

What are the terms on your invoice?

They didn't give any reason. I was about to chase when the payment arrived in my bank account.

Perhaps I should pay on time, but then chase them when they are inevitably late with my next payment... And only give them a fortnight.

I give 28 days (it's on every invoice) and guage it over a year (my software does it for me). Most organisations are just in time payers though some invoices can be months overdue... I usually get an explanation and choose to accept late payment. Occasionally I issue a LBA and ponder a claim.

I think shortening your due date will only make you more annoyed. It's not like they don't pay, they just aren't quick enough for your arbitrary deadline (all of them are arbitrary, please don't take that the wrong way).

Make your terms 28 days, which is quite usual, then your expectations will match their payment times.

When you invoice them, state the date that the payment is due to you and the fees incurred for late payment on your invoice. "Payments are due within ten working days of the date of this invoice. Any payments due on that date will incur a fee of 5% of the invoice amount. After 15 working days, [your name] will make enquiries as to the status of the payment, which will incur an additional fee of £50."
Send them an email now stating that you're updating some of the terms of your freelance contract and that the above passage will be included on future invoices. You should be able to enforce it for any work agreed after the date that they acknowledge your email.

But also, you need to pay them on time anyway - you don't get to be late just because they're late unfortunately.

Always put terms on your invoice and then follow up .
What terms does it say on there invoices ? If it's 30 days say they should pay within 30 days and chase when due then you can refuse to pay them until they pay .

@islockdownoveryet

Always put terms on your invoice and then follow up . What terms does it say on there invoices ? If it's 30 days say they should pay within 30 days and chase when due then you can refuse to pay them until they pay .

I said all this above. They ask for payment within two weeks; I asked for payment within three weeks but it was still late.

@CuriousaboutSamphire

I think shortening your due date will only make you more annoyed. It's not like they don't pay, they just aren't quick enough for your arbitrary deadline (all of them are arbitrary, please don't take that the wrong way).

Make your terms 28 days, which is quite usual, then your expectations will match their payment times.

But why should I have to wait twice as long as them? Especially if the due dates are all arbitrary (which I agree they are).

@MootingMirror

But also, you need to pay them on time anyway - you don't get to be late just because they're late unfortunately.

Yes, I thought this was probably the case! Just feeling a bit cheesed off.

I wouldn’t delay your payment to them but after 30 days I would chase them for their payment. I guess only you know the relationship that you have with them, I work as an accountant and we would normally tell clients to write a letter giving an additional 14 days to pay or we will be taking legal action, but if all your work is through them this may result in them possibly not giving you anymore work.

It depends entire on your contract. Massive oversight if you didn't include terms.

@AriettyHomily

It depends entire on your contract. Massive oversight if you didn't include terms.

The only term is the due date, which was included in the invoice. Because of the set-up it wouldn't be appropriate for me to give them any additional terms and conditions.

But why should I have to wait twice as long as them? Especially if the due dates are all arbitrary (which I agree they are). You shouldn't. But also you need to be realistic about payment terms. 28 days/a month is usual. That they have 2 weeks in their contract is down to them. They probably also have their own terms about when they will pay. It's always a bit more of give than take for us small contractors.

Thanks for everyone's thoughts.