Any legal minded out there have started to get slow payers and have no terms or conditions on my invoices yet. I know that i have to wait for 30 days as the defalt this time but want to set something up for next months invoice run. Ok i give a service as a book keeper so think 14 days is more than fare and that i think i should with hold my services untill payment receiced too - any idears on wording for this would be a great help
2007-01-13 04:06:34 · 4 answers · asked by Anonymous in Business & Finance ➔ Small Business
Ok will say 7 days - and i do remind allready want idears of correct WORDING!
Oh and im training to be an accounant.
2007-01-13 04:26:28 · update #1
Something like
" ... To avoid any surcharge, the sum due under this contract must be immediately payable. If the amount is not received by us within 5 working days, a 25% penalty fine on late payment will be imposed. In addition, we have to charge interest at the rate of 2% on a daily basis to cover administration cost. ..."
If you prefer professional help, try
http://www.agreements.co.uk/
2007-01-13 04:33:50 · answer #1 · answered by Zenithia 3 · 0⤊ 0⤋
Try sending a reminder ie " I write with ref to the above mentioned outstanding invoice and should be obliged if you would kindly arrange to settle this within the next seven days".
If they don't; send another reminder but this time tell them as this is your second reminder if the debt is not paid within a further seven days you will have no choice than to commence legal action to obtain the outstanding funds.
This usually scares people into paying up.
Hope this helps.
2007-01-13 04:21:40 · answer #2 · answered by RUTH M 3 · 0⤊ 0⤋
Yes you should have done this from the start. Most businesses have a 10 day grace period. This is however, on it's way out and poeple are more using 7 days. As for rates on late fees you have to look up what's legal for your state. An accountant or business lawyer can help you with that.
I use incentive. 2% discount for prompt or prepay. etc.
There's also mechanic's leins, and selling the debt.
2007-01-13 04:23:08 · answer #3 · answered by Ricky J. 6 · 0⤊ 0⤋
First of all you need to check your spelling!
How about a much more polite way of wording.
The cost is X if paid within 10 days.
The cost after 10 days is X+10%
This encourages fast payment as people are thinking that they are saving money. Easier to collect as well.
Send reminders out!
2007-01-13 06:08:57 · answer #4 · answered by Biz Guru 5 · 1⤊ 0⤋