How long do you wait for bad payers?

Outside of my regular contracts, I find the slowest players are the most well off. The client we have issued proceedings against is seriously wealthy. "Normal" people seem more inclined to pay for what they buy.
 
How big is your business? Could you use a factoring company? Then it wouldn't be your problem
 
As soon as the agreement is broken with no warning or explanation, thats when i make the call and send the collections department in. Usually gets sorted the same day then. Its the not knowing, lack of communication which really fucks me off. Im reasonable and if they were to give notice and say that they will be a week late for whatever reason then i am happy. Thats why im getting out of the building game sharpish.
 
1dart said:
As soon as the agreement is broken with no warning or explanation, thats when i make the call and send the collections department in. Usually gets sorted the same day then. Its the not knowing, lack of communication which really fucks me off. Im reasonable and if they were to give notice and say that they will be a week late for whatever reason then i am happy. Thats why im getting out of the building game sharpish.
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you try to avoid using debt collectors in my opinion. never ends well. sometimes its tempting mind you.

i dont need factoring, not enough outstanding to justify it.
 
Zin 'messiah' Zimmer said:
Genuinely, and this differs for different small business's, but no more than a week, I'd also look the person in the eye to see if there taking a chunk out of my unborn kids inheritance!
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Congrats, when's it due
 
Swales lives said:
One for the self-employed and small business owner this.
How long is too long, before you take action?
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Simple - state payment terms on your quotation & agree before taking on any job/order/contract.

30 days is about the norm but the larger the company the more they tend to stretch this to 90.

Then state on the invoice any delay incurs a penalty charge of 15%, you will be surprised how soon your invoice rises to the top of their payment pile.
 
On commercial contract, it will depend on what payment terms you agreed. Standard terms are thirty days from the date of the invoice, any later and you can claim interest and late payment compensation pursuant to the Late Payment of Commercial Debt (interest) Act. Interest is charged at at 8.5% per annum.

Make sure you send a letter before action allowing the debtor 7 days to pay before commencing proceedings.
 
Always gone down the route of end of the month plus 30 days.


If nothing by then, big Vern pays a visit.

big_vern.jpg
 
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