How do you get people to pay you on time ??

Question

I am a builder and have a lot of work , it happens all the time people want me to do a job as quick as possible and then when it comes to paying some take for ever. I always check work is carried out to a high standard and get lots of recomendations what can i do to get clients to pay on time ?? ps only suggestions that are legal please.

Answer 1

Make them pay in advance...Or have a signed contract outlining the payment due dates. Or you can ask a certain percentage of payment upfront, and then during varying stages of the work. If they don't pay you dont finish...

Answer 2

I appreciate what you're saying, but it's not a problem I've ever had to tell you the truth. I always get paid on time. I think the nature of work makes a difference. Domestic work always pays quicker than anything commercial or worse still if you're contracting to a contractor. Also a lot of companies have billing cycles etc. At the top of estimates and invoices I always put the words 'prompt payment is always appreciated'. It's sutle, but it gives the payment issue some attention and at least they know that you expect to get paid as soon as possible. It's a polite way of saying 'pay me when I'm finished'. I also have no qualms about asking for the money. I will knock on their door and ask for it. I don't send or post bills unless it's the norm' to do that. I also make sure that the work is being completed when they are there, so that I can show them it's finished and then ask for payment. There's no reason I can think of why they shouldn't pay you at this point. Are you sure you're not a bit hung up about asking for the money? Is it something that embarrass you? Also, another thing I'm very careful about is that I never become the customer's friend. I'm very polite, professional and courteous but I'm not going to become their mate. It's a professional relationship and that definitely produces quicker payments. In a nutshell.....knock on the door and ask for the money and expect nothing less.

Oh! 7 days, 14 days, 21 days and all that nonsense, just don't do it. Payment on completion! You eat now and you want paying now.

I'm in the process of selling my business to pursue a career in something else. Had enough...too much hard work!

Answer 3

Simjam - I would suggest 2 strategies:

1) Improve the payment terms you have with your suppliers. If you have a good trading record with them, see if you can extend your payments a further 30-days or so. If you are paying in cash, move to an account with your suppliers.

2) Get a contract in place before you do any work for any customer. Contracts needn't be any more than a description of the work, the period it will be done in, and the price agreed. Put a line in the payment section, in bold, such as:

- "A 3% discount will apply for full settlement within 14days. A 2.5% discount will apply for full settlement within 28days" You can either add this to the total anyhow, or truly discount (up to you) but the important thing is that you are subconciously planting in their heads that they will either be paying within 2 weeks or 4 weeks.

Combining both will see your cash-flow improve dramatically

Answer 4

If you don't know a person or haven't dealt with them before, ask for a down payment after work has begun. You should set up payment schedules all along the construction of the work.
Possibly when the job is half done, they should have paid you half the wages. Don't ask them to pay ahead. They should only pay for what is done.
Offer them a 3% or 5% discount for paying in full in one month, etc.

Answer 5

when youve done the job invoice it straight away and give 28 days to pay do not allow more that 3 days after that to start polite chasing but within a week go round to collect if they haven't paid by the next 28 days advise that legal action will be taken. with the amount of bill people have they will pay the ones who push the hardest. you have done the work you deserve paying

Answer 6

Give them a set amount of time to pay (14 days for example) and state this on invoice with note saying that all goods remain yours until the invoice has been paid in full, also say that interest will be added on late payments beyond the 14 days. Should they still refuse to pay then you should get solictors involved. If you register with Thomas Higgins (they on internet) they will send a strongly worded letter out for £2 + VAT!! They are really good and have managed to get about £4k worth of invoices paid to us from people who were avoiding us. Thomas Higgins gives them 7 days to pay or it goes to court.

Answer 7

Ask for payment on delivery on initial jobs, this way you get to know your customers.

Also when giving credit write a contract or purchase order which penalizes late payments.

Finally you have to make collection calls when people don't pay. Do this through a third party, preferably a law firm or collection agency.

Answer 8

Get 50% down before starting the job, then 25% when job is 50% completed, now the balance before your men leave the job. First of all anyone who is willing to give you the 50% upfront is more likely to pay in full. It always seems to work for me.

Answer 9

Hi, perhaps you can try Google adwords to market your service/product.

Google adwords is a text-based system for advertising on its site and its partner sites. The service allows you to create your own ads, choose keywords to help match your ads to your audience, and control the cost of your advertising—you pay only when people click on your ad (a cost per click plan). Anyone wishing to promote a product on Google can enroll in this program.

you can get a 5 detail pages information about Google adwords at :

http://www.adcenter.net.cn/google-adwords-1.html

Good Luck && Best Wishes!

Answer 10

give them a quote in detail of charges . tell them material cost is due before work is started and when job is completed they have 15 business days , then have a contract stating some interest will be applied starting the 16th business day