Paying Up On Time...

[Rob]

A quick question...

 

Is it a legal requirement that freelance invoices are paid within 28 or 30 days? If so, is it 28 or 30 days and can anyone point me in the direction of the specific chapter / verse?

[JohnMac]

Rob,

 

I'm owed money for work done in February.... I believe the government have

streamlined the procedure for taking non payers to court, which is my next step.

I'm off on holiday for a week but if I've not received payment then it's off to the local courts and/ or citizen advice for the next step.

 

Have you sent reminders and duplicate invoices marked overdue? The last reminder I sent was via registered post so I got proof of delivery.

 

Best of luck

 

regards

 

John

[Kevin Robertson]

As far as I'm aware, there is no time limit for payment. I think the documentation states 'a resonable amount of time'. On all my invoices and contacts I state when payment is due. I also state if there is a penalty for late payment. This usually ensures prompt payment. (although there is a certain theatre in Edinburgh during the festival that insisted that 5 months was a resonable time...)

[Paul J Need]

The Government did introduce legislation to assist small businesses with late payments in 1998 and businesses.soul traders are allowed to charge interest on overdue invoices. Its something like 4-7% above the base rate.

 

One way to deal with this is :

 

Write your invoice in the same way but add the following at the botton.

 

Add a 5% finance charge to the total, then add:

 

If paid within 30 days you may deduct 'x amount' (finance charge figure)

If paid within 60 days please add .......(add another finance charge)

If paid within 90 days please add........(add another finance charge)

 

A lot of people do not push hard enough when trying to get paid, you have supplied a service - you should get paid within a reasonable time. People think that if one presses too hard and makes threats of using legal action etc. the client will not use your services again. Well frankly.. if they want to use you AND take 90 days to pay you.... you are possibly better off WITHOUT that particular client? This is a business decision you have to decide.

 

Useful further reading............... ( CLICK HERE)

[Tom]

Its something like 4-7% above the base rate.

8% according the the info in your link.

 

Very handy by the way but still nothing definitive about what constitutes a late payment. I guess this will depend on the contract (you did have a contract didn't you?)

 

If you have got a contract it should state when you will be paid. If it doesn't then get it added before you sign. I always make sure that contracts specify a payment schedule and which expenses (phone, travel, accommodation etc) are included.

 

Of course for much freelance casual work you will not have a contract. In this case I think that 30 days seems to be fairly industry standard. I'm not sure it would stand up in court but then, if you got to court and they still hadn't paid it would be well beyond 30 days.

[gareth]

Whatever terms you state on your invoice, that's what counts. My invoices all state "Payable within 30 days of invoice date". Your mileage may vary, of course!

 

As long as it's there in black and white, there can be no argument. Once the 30 days (or whatever) is passed, then it's up to you to negotiate further terms. This could be anything from a friendly reminder to something much stronger if payment is VERY late. For the first time, I recently had to threaten a client with the use of legal proceedings to recover what they owe me. I'd been hassling them for ages, and they came up with all sorts of excuses - stolen cheque book, "family problems", etc. etc. But as soon as there was mention of the Small Claims Court, they miraculously found their cheque book and paid up! :** laughs out loud **:

[Ben]

problem is in small claims court you ant claim back legal fees or court costs so it may well end up costing you more than you get back

[mark b]

I hope that you have more luck freelancing than I did. The late payers are what made me quit freelancing and go full time. In fact my worst payer was a local city council there longest outstanding invoice was some six months. It got nasty and I had to go to small claims they then settled out of court as my lawyer was chasing them for a heavy hit of compensation in a higher court.

[Bryson]

From the other side:

 

I work for a council. I'm pretty dilligent in processing invoices as soon as I get them....BUT....our finance department are the most obstructive, awkward set of people I've had to work with. They constantly return invoices for tiny, niggling details. (Like being pence different to the PO, for example) It can cause me real problems. Luckily most of my suppliers are quite understanding, but I have lost accounts over our finance dept. exteme slowness. :** laughs out loud **:

 

Bryson

 

(If we owe you money at the minute...sorry...I've been on holiday...)

[Ben]

well the worst I have had is 8 months at the end of which I snet them an invoice with a large amount of interest added as the contract said I would bne paid within a week of the invoice date, its amazing how fast the paperwork clears when you try to get an extra few hundred out of them... :** laughs out loud **:

[timmath]

within 30 days is nice and accepted as the norm but as an induvidual you have to workby the terms the company your working for pays you. you say 30, they pay in 60 tuff #### really.

 

There aren't may options,

 

1. you could take them to court, they offer to pay £1 per month... your stuffed and don't get any more work

 

2. hound them until they pay (sometimes works)

 

3. don't work for them again.

 

options 1 + 3 you lose, option 2 - they get fed up of you.

 

moral of msg. Deal with it - you don't always get paid on time.

 

regards

 

tim

[Ben]

its just that attitude that does the rest of us wrong, if everyone stands up and says pay me on time then they will pay, if some do and others say pay me when you will all that happens is they are seen as pushovers and the others are seen as rigid, in my oppinion I would rather be rigid and get paid what I deserve when I deserve it, not when somone in an office somwhere decides its tilme to get out the check book, I do work and I expect to get paid ontime, if I did not do a fit up till 30 days into the show it would be a problem so why should I get paid 30 days late?

[Paul J Need]

problem is in small claims court you ant claim back legal fees or court costs so it may well end up costing you more than you get back

This is not actually true. If things get as far as the small claims court, you add the legals costs, interest, even the travelling costs of getting to court to the summons ( claim) If judgement does in your favour - and it usually does - your client then has to pay : For example

 

Fee #200.00

Legal fee #38.00

Interest + travel costs

 

Once you have judgement, however then starts the new problem of enforcing it!?

[Rob]

moral of msg. Deal with it - you don't always get paid on time

 

Cue: Mr Cooke enters SR :** laughs out loud **:

[colinmonk]

Tims Right,

 

Most companies will pay you within your terms, but you would have to state your payment terms to begin with (Rob have you added payment terms to your invoices?, if not its up to them when they pay you, be thankful!)

If your that precious about payment within 28days then you need to speak to them to check before hand or let them know.

 

 

Hounding some companies will just not work, you'll get paid and not work again, simple... Its life and you just need to get on with it!

 

its just that attitude that does the rest of us wrong, if everyone stands up and says pay me on time then they will pay,

 

Not true Ben, they will pay you, and they wont employ you again, simple as that im afraid. Most companies will pay on time, sometimes they cant, and sometimes they have very good reasons!

 

 

You dont always get paid on time! You want to carry on working for them again, accept it!

Its life, live with it!!!!