Slow paying client

[itiba]

I'm not too sure every client of mine would be happy with adding an extra amount to my invoices with conditions imposed - and I'm not too sure it would be held up in court as the extra 15% or whatever wouldn't have been discussed at the time the contract was agreed (or text message replied to as is often the case). Surely the compensation and interest penalties imposed by the late payment of commercial debt regulations are a much better tool for getting prompt payment (and enforceable too). IIRC for an invoice of £1500 I was able to claim an extra £70 as well as 8.5% of the total amount (but that's what you get when you take 12 months to pay!)

[Joe Fernand]

Climbing the roster said - 'The only way to deal with this behavior is for everyone to set realistic credit limits for people, particularly sole traders,and to withdraw all credit if terms are not met. These people tend to get in an"emergency" because someone won't supply something beaucas they have not been paid. These are also the kind of people that undercut everyone to get a job then piece it together from sub hired kit, pushing for heavy discounts to try to make a profit from an underpriced job. They undermine the profitability of the entire industry' –vs. LTD Co.'s who run up millions of pounds of debt, fold tomorrow AM and Phoenix tomorrow PM running up even more debt!!!

 

Paulears said – 'A client I do occasional work for - usually emergency "help'. Money up front every time or you don't go onsite – keeps it simple and they know exactly when you want paying.

 

Joe