Invoices on account - how long can u delay for?

[Deleted User]

Got an invoice that was due a few weeks ago. Bit of cash flow problem at the moment.

Phoned the company in question and offered to pay by credit card but they didnt seem too bothered and said it'd be cheaper to put a cheque in the post because there was a 1.9% charge for credit cards.

I notice my statement has got boxed for current, 30 days, 60 days, 90 days, 120+ days and it says future orders could be affected if its over 60 days overdue.

Realistically, when do companies expect payment? Am I being naive worrying because its not paid dead on time?

I dont want to affect any future ordering with this company, but at what point would they start getting annoyed I hadnt paid?

FOURCANDLES_2

Depends what business you are doing I have a number of payment methods depends what job has been requested
1, is payment on completion if not paid then I am annoyed....
2, payment with in 14 days with a reminder sent out in 14 days if payment not received.
3, payment within 21 days reminder sent at 21 days .
I stick to these and expect customers to adhere to them OK not to bothered if it is a day or two over .
The issue is if customers make you chase them for the money I do not work for them again as it is not worth the hassle because them not paying will cause you to have cash flow problems and I found those that keep you waiting is down to them keeping a healthy cash flow .
I would also never let on your having cash flow problems it can panic some people and they could call their money in quicker

paulwf

Didn't you post this same question and get answers recently?

Generally if the agreed terms are 30 days then 60 days will usually be when you are out on stop although it will vary considerably from company to company. As I've said before though, if for example it is a £1,000 invoice and you can't pay it all instead of putting it off try and chip away at it and pay £250 a week otherwise the biggest invoices will always go to the back of the pile. If you start paying it off and are up front with the company you'll have a much better chance of not being on stop.

I'll explain it another way: you could order £1,000 of goods, get overdue, pay it off then order another £1,000. OR...you can pay off £250 a week then order £250 a week and then although you owe £1,000 it'll be rolling forward from week to week so you're never over 30 days. Placing regular small orders and making regular small payments is a great way to be able to use your suppliers as a source of short term credit.

[Deleted User]

paulwf wrote: »

Didn't you post this same question and get answers recently?

Generally if the agreed terms are 30 days then 60 days will usually be when you are out on stop although it will vary considerably from company to company. As I've said before though, if for example it is a £1,000 invoice and you can't pay it all instead of putting it off try and chip away at it and pay £250 a week otherwise the biggest invoices will always go to the back of the pile. If you start paying it off and are up front with the company you'll have a much better chance of not being on stop.

I'll explain it another way: you could order £1,000 of goods, get overdue, pay it off then order another £1,000. OR...you can pay off £250 a week then order £250 a week and then although you owe £1,000 it'll be rolling forward from week to week so you're never over 30 days. Placing regular small orders and making regular small payments is a great way to be able to use your suppliers as a source of short term credit.

Yeh. Sorry I did post about this just remembered.

They sent me invoice in July and then payment/remittance advice tear off in August.

Dont want to upset them unduly because they're our only supplier and without them we're screwed !!! Might just pay by credit card for now and swallow the 1.9% fee.... :-(

Savvy_Sue

So nothing's changed in nearly 3 weeks, you still have 'a bit of a cashflow problem'?

Is it actually getting better? Or worse? Realistically, what's the outlook in the short, medium and long term? If you pay it by credit card, will you have a cashflow problem paying that off?

Is it 'long hard look' time?

[Deleted User]

Savvy_Sue wrote: »

So nothing's changed in nearly 3 weeks, you still have 'a bit of a cashflow problem'?

Is it actually getting better? Or worse? Realistically, what's the outlook in the short, medium and long term? If you pay it by credit card, will you have a cashflow problem paying that off?

Is it 'long hard look' time?

We run an aesthetics treatment business (i.e. botox, fillers, peels)

Things were going REALLY well in early summer which is why we ordered in quite a bit of stock. Its just gone VERY quiet over the last month or so.

Perhaps its because people are away on hols etc.

We've got a deal with a local salon who are confident they can get us LOADS of business - it just hasnt happened yet. Expect things to pick up soon.