small business .. how long to pay an invoice?

relynutz

Ji we run a small business, being a garage.

We operate a "invoice paid on receipt of vehicle policy"

We have recently done some work for a taxi firm
The taxi company did not pay and doesnt seem to want ti.

I have rang them daily for the past week... Yesterday I spoke to the manager and
was asked
" why do you keep ringing here? F*** off, Stop F***ing ringing, now F*** off *

the bill is for almost £2500

this is the first tim ei have had to deal with anything like this. and am wondering how long legally the taxi company has to pay their bill?
also just over £1100 of that bill was parts.
many thanks

Premier_2

It depends on the terms of supply you agreed in advance. Most garages want payment before they will release a vehicle they have worked on, unless the customer has a credit account in place. Why don't you operate a similar policy?

It sounds like the customer has no intention of paying you. Are you sure it was the taxi firm itself that you supplied? Or perhaps it was an individual driver?
If you are certain it was the taxi firm, consider commencing legal action as it sounds like they have no intention of paying.

relynutz

it was the definately the comapnies taxi.
we have always maintained a payment upon collection of vehicle policy.

thanks

funkymonkey1

So have they collected the taxi or do you still have it?

relynutz

they have their taxi , at the time of completion of work we was told that they would be in in the morning to settle the bill.

I know that we should have kept the vehicle!!!! :-(

schneckster

I think the law is actually 28 days from date of invoice, but generally accepted practice, even by the law, is 30 days. However, that can be superseded by your own payment terms as that would have to be accepted by your customer upon making the deal, i.e, they agreed for you to do the work on your payment terms.

You haven't said how long it's been without payment, but if they have that attitude on the phone, start enforcing the rules.

Write to them with a statement of their account and showing how long the bill has been outstanding. Point out your payment terms and show that payment is overdue.

Given their attitude, I'd then tell them that you expect payment within 7 days or you will add a 25% late payment administration fee, plus 8% per day in interest since the bill became outstanding. If still payment not received within a further 7 days, the matter will be passed to a debt collection agency who will charge their own fees on top of what is owed.

If you still have the car, tell them that the car could be sold in whatever form possible to cover payment. If you do still have it, then they obviously think the car is worth far less than the repair bill and are letting you keep it instead of paying you.

If you don't still have the car then why did you break your own rules of payment on collection?

Best of luck with it all,

Schneckster

Premier_2

relynutz wrote: »

it was the definately the comapnies taxi.
we have always maintained a payment upon collection of vehicle policy.

thanks

It doesn't matter who owned the taxi, it matters who contracted you to carry out the work.

It sounds like you are unsure, (or perhaps you are but don't wish to confirm it wasn't the taxi business), which could present a huge problem.

Premier_2

relynutz wrote: »

...we have always maintained a payment upon collection of vehicle policy.

thanks

relynutz wrote: »

they have their taxi , at the time of completion of work we was told that they would be in in the morning to settle the bill.

Why did you deviate from your existing/agreed payment policy? :huh:

relynutz wrote: »

I know that we should have kept the vehicle!!!! :-(

Yes, you presumably had the payment policy for a reason ... and you've just been reminded what that reason was

relynutz

It was DEFINATELY a taxi company .
It was the owner of the company that dropped the taxi off , picked it up and i have dealt with previously.

My husband ( he's the mechanic) gve the company their car, on the understanding that the payment would be recieved the next morning.

Premier_2

Is this a new business you have recently started, or are you really that unknowledgeable of the trade you are in? :huh:

https://forums.moneysavingexpert.com/discussion/2419999

Either way, they seem to have saw your business weakness and taken you for a ride.


Taken for a ride! Taxi company. Gettit? :rotfl:

jexygirl

oki, lesson learned, whoever, whatever, and no matter what the possibility of more buisness is, stick to your guns, they needed the taxi back you needed payment, and you held the trump card.
Now, it seems like a small claims court proceedure.
Im not experienced in this stuff, but thats the route I would explore.
gl
Jex