Suzette Posted October 10, 2008 Share Posted October 10, 2008 If you haven't already agreed terms for the next job ... make your bill 5% larger and then deduct 5% to get paid in 20 days...So you want £100 for a job ... make the invoice £105 then mark the invoice as "less 5%, pay within 20 days" so you still get your £100. Link to comment Share on other sites More sharing options...
scjb Posted October 11, 2008 Share Posted October 11, 2008 Late Payment of Commercial Debts... You're the one invoicing. You're the one who sets the terms (certainly can be by agreement, but cannot be forced). You're the one with the power to charge interest and penalties on invoices that aren't paid within the timeframe you set out. My bank doesn't look favourably on me telling them I'll pay my mortgage when the next chap up the chain can be bothered to pay me! Link to comment Share on other sites More sharing options...
Jram Posted October 11, 2008 Share Posted October 11, 2008 make the invoice £105 then mark the invoice as "less 5%, pay within 20 days" so you still get your £100. Decent advice, though 5% of £105 is £5.25 to be precise.... Link to comment Share on other sites More sharing options...
Sound In Gloucestershire Posted October 11, 2008 Share Posted October 11, 2008 I may do DJ work, but I am fulltime and do alot of work for Corporates and Hotels etc who need invoicing and never pay on time! Whilst you all seem to be complaining about this, just dont work for them? They are offering you work and you will get paid in 60 days time, if you dont like those terms, dont work for them? Go work for someone else. As the company, they have the work, do you want to work for them? No? OK the next person will. If you need the work or dont live from week to week financially, then theres going to be alot of work available for you! Link to comment Share on other sites More sharing options...
Guest lightnix Posted October 11, 2008 Share Posted October 11, 2008 Sorry member, but that's bullshit. (You said it first.) ;) Right now, we only have JDPs word that the letter exists. We're trying to get a paper copy ourselves to confirm. And when we do, and if the letter doesn't say anything about not re-distributing it, then we'll post the name for all to see.I can confirm that the letter does exist...Got the letter in question? Scan and email it to a moderator or admin, please!Yes, please. If anyone has a copy of the letter, can they do what Bryson is asking? ...they're trying to get their credit facilities from the freelancers instead!Nothing new there, then Would it be OK if we printed unsubstantiated rumours that the company you worked for was unable or unwilling to pay it's bills in a timely fashion? Because that's what we're discussing here and it's a pretty serious accusation...Fair enough. Having slept on it, I suppose the company concerned should at least be given a quantum of credit, for being up front and open about the situation, rather than relying on the usual, above-mentioned delaying tactics of losing invoices etc.; although I suspect that will be of little comfort to their regulars ;) I remember the last recession in the early 90s and it wasn't pretty. If ever there was a time, when freelancers needed to get their T&Cs in order and start running themselves as businesses, it's now. Just make sure your T&Cs don't compromise your self-employed status ;) Link to comment Share on other sites More sharing options...
Brian Posted October 11, 2008 Share Posted October 11, 2008 ***IMPORTANT*** OK, if anyone has a copy of this letter and access to a scanner or a fax machine, and feels strongly about this then please PM me for contact details. Feel free to remove your name from the top of the letter if you wish or I can do it for you. Link to comment Share on other sites More sharing options...
zonino Posted October 11, 2008 Share Posted October 11, 2008 Certainly, there is legislation in place to prevent companies from making unlawful deductions from wages. Whether this holds true for the invoicing self-employed, again, worth investigating. if the law applied to "self-employed" it would rather constitute a contract of service relationship(i.e. employer-employee), rather than services. I don't think you'll be too lucky there ;-) in essence what the company is doing is stating their terms and conditions to you, so they will apply to any further contracts put in place with them, if you agree to carry out work for the company. Of course, any other invoices should be paid under the T&C provided when the work was agreed (you did agree T&C before the work was carried out, right?) Link to comment Share on other sites More sharing options...
tokm Posted October 11, 2008 Share Posted October 11, 2008 Whilst you all seem to be complaining about this, just dont work for them? They are offering you work and you will get paid in 60 days time, if you dont like those terms, dont work for them? Go work for someone else. As the company, they have the work, do you want to work for them? No? OK the next person will.The problem is though, freelancers might have to put up with it.. if that's the only work going. Thus we get back to the points about larger companies abusing they're powers.. they know people rely on them to survive, so will just have to accept it. Perhaps you'd not be saying that so candidly if you we're freelance ... Going back to the original point.. I've noticed quite a few other corporate/event companies changing their payment scheme's over the past month.. The thing is, most already had some sort of 'hand in by' date (usually two at points in the month) for invoices & payment date (usually a week or so later) type system already in place, they coped fine like that for years, so any excuses of 'oh we just want to make payment of invoice's from freelancers easier for our accounts dept' really don't wash with me and while I'm not going to say who from, a couple have tried that! Luckily I doubt I'll be affected by any of this till the new year as I've got several projects booked in/lined up already.. I doubt any of this will have changed to something more sensible by then, so I'll just have to see if this has any affect on who I choose to take work from, I already know a few people who have started choose who to take work from based heavily on they how quick they are to pay! T Link to comment Share on other sites More sharing options...
indyld Posted October 11, 2008 Share Posted October 11, 2008 Myself and many other freelancers have long made engagement decisions on the speed/reliability of payment. I have often thought about creating a prompt payment "discount" but don't really think that enforcement would be any easier than it is to charge late payment interest. I have been known to present an invoice for payment BEFORE starting work, in cases where I have no connection or history with the client. It is interesting that, probably due in part to the global economic climate and endless news reports, I heard several rumours just this week about the solvency of at least 3 companies in the business. One was a cashflow related problem, similar to the one mentioned earlier in this thread. I suppose it's to be expected at the moment, even it they are only hearsay. // Edit to add: It's also interesting that JDP thinks that things are so desperate in the RnR world that it has become necessary to do corporate gigs. It must be hard having to lower your standards, earn more money, do less work etc. Link to comment Share on other sites More sharing options...
JDP Posted October 11, 2008 Author Share Posted October 11, 2008 If you haven't already agreed terms for the next job ... make your bill 5% larger and then deduct 5% to get paid in 20 days...So you want £100 for a job ... make the invoice £105 then mark the invoice as "less 5%, pay within 20 days" so you still get your £100. True, but read the above part of my post. They won't put any rates up - otherwise I would of clocked that one Link to comment Share on other sites More sharing options...
djw1981 Posted October 11, 2008 Share Posted October 11, 2008 Allegedly, Central Government departments are going to 90days. It was alleged by a representative of small businesses on the Today Prog on BBC Radio4 this week. This has not been 'made official' by the treasury, but they are encouraging departments to delay payment as it shortens the period over which government needs to borrow money - and with our current national debt, thats a big interest bill. Link to comment Share on other sites More sharing options...
Guest lightnix Posted October 11, 2008 Share Posted October 11, 2008 Allegedly, Central Government departments are going to 90days...Now that's worrying - if it's true. For years, Government departments have been paying on 30 days, in order to set an example to the private sector. However, it does contradict this article, which says that Broon has promised small businesses (i.e. those with less than 250 employees), who work on Government contracts, payment within 10 days; although this promise has not been matched by the Scottish Government. Mind you, given the tenous relationship that New Labour has with The Truth... :) e2a... JDP - you need to clear you PMs - your box is full :) Link to comment Share on other sites More sharing options...
Colin Posted October 12, 2008 Share Posted October 12, 2008 The biggest problem with this whole thing is that with most companies I generally dont go chasing up my money until about 40 days after an invoice date (30days + a little time for them to f up without me looking like an a hole) If I apply this to the 60 day rule I could have potentially have 70 days of work they owe me money for and the company could go the way of SKL... In the uncertain times it is always worth keeping a closer eye on your invoices and anything looking suspect talk to other freelancers. When you discover a company is taking the piss with everyone refuse to work for them until they start paying people, a few phone calls suggesting company X might be incapable of freelancers will generally force action as people attempt to get their money/reduce potential losses. Link to comment Share on other sites More sharing options...
aidso Posted October 12, 2008 Share Posted October 12, 2008 Did we not talk about payment terms not too long ago and it was pointed out that the last communication sets the terms. So company A sends me a letter stating their payment terms are 60 days. I send company A an invoice which at the bottom/back says "payment to be made within 30 days". If company A does not reply saying our payment terms are 60 days then the 30 day terms stands. It does not matter if they sent you a letter 6 months ago stating their terms cause your invoice was the last communication stating terms. So if company A doesn’t pay by 30 days, send them a final demand letter by record delivery on the 30th day stating they have 5 working days to pay. If they don’t pay then send them another letter giving them 48 hours. If no payment is made pay a solicitor £30 to send them a letter saying they are now defaulting on payment. If no payment is made go to your small claims court. I know this is a bit harsh but it just takes one freelancer to do this to shake the company up. Link to comment Share on other sites More sharing options...
zonino Posted October 12, 2008 Share Posted October 12, 2008 erm, no! Payment terms should be agreed in advance, a further communication without acceptance by the other party does not result in a binding contract, the initial terms and conditions of the contract would stand. Link to comment Share on other sites More sharing options...
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