Owed money by small business!

YEOVILGOM

Ah but don't forget - this was their friend!

Horace

I am confused now - are you self employed or not? Are you registered with the HMRC as being self employed?

Should you even be in business if you offer people services to the value of £1000 or thereabouts and let them have 12 months' interest free credit?

Why shouldnt you use moneyclaim online? Its there for people who are owed money

slipp_digby

while i agree with some of what horace and geoff have said (like phoning to chase) you still need a written record. a list of phone calls you have 'made' is worth nothing what so ever.

if we treated our customers in the manner in which you have outlined we just simply would not retain them. the threat of court action 30 days after money was due would end up with us spending a lot of time taking recovery action.

if you are going to threaten court action you must follow it through and therein lies the balance. we all take a degree of judgement on whether debts are a 'wont pay' or just delaying to retain money.

for the record we are getting payments within 42 days of invoice and not having to waste much chasing so our 'patent letter writing systems' works just fine for us thanks.

YEOVILGOM

slipp_digby wrote: »

while i agree with some of what horace and geoff have said (like phoning to chase) you still need a written record. a list of phone calls you have 'made' is worth nothing what so ever.

if we treated our customers in the manner in which you have outlined we just simply would not retain them. the threat of court action 30 days after money was due would end up with us spending a lot of time taking recovery action.

if you are going to threaten court action you must follow it through and therein lies the balance. we all take a degree of judgement on whether debts are a 'wont pay' or just delaying to retain money.

for the record we are getting payments within 42 days of invoice and not having to waste much chasing so our 'patent letter writing systems' works just fine for us thanks.

Apologies as you appear to have taken offence at my post - not my intention.

However:

I do not accept or agree with this satement:

"a list of phone calls you have 'made' is worth nothing what so ever."

Why is this worth any less than letters you have sent?

Your second paragraph seems to suggest you are prepared to accept payment on 30 days late - why not just extend your terms?


Again, agree with this

"if you are going to threaten court action you must follow it through and therein lies the balance. we all take a degree of judgement on whether debts are a 'wont pay' or just delaying to retain money."

If it is just a case of delaying tactics you are surely helping them by delaying the threat of action?

"for the record we are getting payments within 42 days of invoice"

If your payment terms are 42 days or greater - congratulations

If you payment terms are less than 42 days - commiserations!



Geoff

slipp_digby

grdcredit wrote: »

Apologies as you appear to have taken offence at my post - not my intention.


If your payment terms are 42 days or greater - congratulations

If you payment terms are less than 42 days - commiserations!



Geoff

none taken

i am going to implement your advice and try to do some phone calls to accounts departments before the due date to check receipt of invoice/authorisations/cmake sure its in the cheque run, and see if its worth a bit of extra time.

YEOVILGOM

slipp_digby wrote: »

i am going to implement your advice and try to do some phone calls to accounts departments before the due date to check receipt of invoice/authorisations/cmake sure its in the cheque run, and see if its worth a bit of extra time.

Great news!

Clearly you won't do it for an invoice of £10 but if you have a bigger invoice this method will ensure you are aware of any dispute before payment as well.

Good luck

Feedback would be interesting


Geoff

DKLS

Whatever you do letter wise, you must get a good grip on your credit control procedures, I have nothing over 40 days.

My tip would be to pick up the phone, dont bother with letters, communicate with your customer and build up a rapport with your customer or purchase ledger clerk and communigate regularly, so you have a good idea when you will be paid, and can therefore manage your own cash flow better.