We have a great way of getting around late payment.Jamez wrote:Hence why all invoices I produce have a date in four weeks from when the invoice was printed which clients must make sure payment is received.
If they don't pay within four weeks of the first invoice, a second is issued and after a further four weeks (12 weeks after the initial invoice date) a legal warning would be sent to them from my solicitor.
If they STILL don't pay (after two invoices, a solicitors letter and probably a few dozen phone calls) then I would be forced to seek legal action and/or debt recovery agents (for outstanding amounts of over 200 GBP).
We sell everything at a discount. Whether it's an order for £100 or £250 or £400, everything we sell is at £775 + VAT.
Why £775 + VAT? If the customer pays late or looks like they will default on payment, we say that the standard rate applies subject to our discretion.
The bankruptcy limit is £750. If anyone owes you more than that and will not pay, you can sue them for bankruptcy. Will any business risk bankruptcy for around £750? No.
Send them a solicitor's letter saying you will bankrupt them if they do not pay and that when they do pay, they owe you the collection fee on top.
They ALWAYS pay up, the lying bastards. Hence, we have, in 8 years, never had a debt not paid.