Bad Payers

[prettyfly1]

Hi Guys

I am new to self employment. I was made redundant in late nov but asked to stay on as a freelance consultant but the client is messing with my money. It is a small business so i know fine well how it works - the boss authorises who gets paid and when. He is calling and giving hassle about work getting done but i am starting to resent it when i dont see any payment forthcoming. What do you guys do and how do you handle it. I dont want to jeapordise the relationship but at the same time will not continue to do heaps of work, turning down other clients, to not get paid?? I know the girl in accounts really well so i feel for her a bit as it isnt her fault but i am starting to get frustrated.

How do you word terms and reminders etc. I find the financial thing so hard so any advise gratefully received.

How officially do you word yourinvoices? Do you put a payment terms (eg within 30 days) on your invoices?

You can always remind ex boss that you can sue for bankruptcy as a creditor for an astonishingly small amount

lol - that sounds amusing. yeah i do state terms of times on invoices.

So remind the girl in accounts and I'm sure she'll manage it for you

I say I won't do any more work until the cheque arrives. I chase up debts. I have clear terms. I charge interest on over due sums

Is it the same amount each month? Do they pay by cheque or Bacs.

Could you ask them to set up a DD each month?

What are your terms and how much over does he go each month? For services I'd be asking for payment within 7 days.

I had a client who was dreadful at signing chqs - but not out of badness - just that he had a million and 1 other things going on and signing a chq was way down the list of priorities. I got another director on my side and went to him to push for payment.

Or could you use the girl in accounts to 'pass' on the threat that you'll be looking for other clients if he's not speedier??

this client is just a bad payer - he does it to everyone. i have seven day terms. I am thinking of introducing rewards for prompt payment and penalties for bad but it is really keeping me up at night.

how do you explain the terms to clients btw - in service level agreements or at the signing of contracts stage - money is my biggest weakness.

oh thank lord - just had remittance advise stating that its been paid - so relieved.

So is that him paying Decembers invoice?

I recently said I wouldn't do X if I wasn't paid by return. (Thye were 6 months late). I think genuinely went on strike. When they realised I wasn't doing it (only a minor thing that I do) they paid the next day and now on time but that's not always possbile. At least they have paid now.

The direct debt suggestion is a good one if it's the same each month. Obviousl in some industries you can get paid in advance but not in most.