Getting Paid by customers

djk1000

Ok, this is a bit of a rant, I need to blow off some steam.

I have been in business now for over 3 years (business to business sales). I am absolutely sick of trying to get paid by people. Every month is the same, I have a list of debtors to get through and by the end of it I feel like hitting something! I go through the motions, from friendly phonecall to sitting in their office and refusing to move and like most business owners, I hate doing it.

Over the past few months, I have noticed that it is getting tougher and tougher. I have worked hard with my staff to grow sales and bring on new customers, but at the same time, more and more of my time is being taken up by people that just hate to pay!!!

I pay my bills on time, the only times I haven't are when I have been let down by slow paying customers. In those situatons, I contact the supplier and explain the situation straight away.

Why can't business owners in this country get their act together and bring a bit of professionalism to running their businesses? does anyone have any suggestions?

DJB

What business are you in? What products are you selling? What is the main reason for not getting paid?

I've a small business but I have a well executed payment plan with my clients and I only had trouble with 1 or 2 in the past... nothing major. As long as the payment plan is outlined in the contract, stages are delivered on time, invoices are sent and payment is received - everyone's happy and I'm paid on time.

EKRIUQ

Well to honest I can relate to you and understand your rant but when your dealing with business's your pretty sure of getting your money at some stage providing you don't loose your head where as if your dealing with the public you may as well forget about getting your money if your owed by them still after 2 months.

The only thing is to know you are going to get paid and by ranting at them your only going to loose business in the long run, Try saying something like this calmly that if the amount is a bit high we can work out some type of payment system.Give them impression that you don't think they have the funds, you should either get paid or a least a couple of post dated cheques.

Some business may just be slow and others may just not have the funds

Mr. Presentable

djk1000 wrote: »

Ok, this is a bit of a rant, I need to blow off some steam.

I have been in business now for over 3 years (business to business sales). I am absolutely sick of trying to get paid by people. Every month is the same, I have a list of debtors to get through and by the end of it I feel like hitting something! I go through the motions, from friendly phonecall to sitting in their office and refusing to move and like most business owners, I hate doing it.

Over the past few months, I have noticed that it is getting tougher and tougher. I have worked hard with my staff to grow sales and bring on new customers, but at the same time, more and more of my time is being taken up by people that just hate to pay!!!

I pay my bills on time, the only times I haven't are when I have been let down by slow paying customers. In those situatons, I contact the supplier and explain the situation straight away.

Why can't business owners in this country get their act together and bring a bit of professionalism to running their businesses? does anyone have any suggestions?

I sympathize. In a similar situation in recent months - customers treating me like a bank! My suggestion, if you can do it, is payment upon supply. We have been offering 30 days, but now don't for new customers and past offenders.

Mr. Presentable

BingoBongo wrote: »

Well to honest I can relate to you and understand your rant but when your dealing with business's your pretty sure of getting your money at some stage providing you don't loose your head where as if your dealing with the public you may as well forget about getting your money if your owed by them still after 2 months.

The only thing is to know you are going to get paid and by ranting at them your only going to loose business in the long run, Try saying something like this calmly that if the amount is a bit high we can work out some type of payment system.Give them impression that you don't think they have the funds, you should either get paid or a least a couple of post dated cheques.

Some business may just be slow and others may just not have the funds

The problem is he wants to pay his bills. People taking three months credit are also endangering your business.

cormie

What's the story with debt collectors for things like this? Is that a bit extreme? How much do they charge anyway?

djk1000

Thanks for the feedback guys,

I have a printing company, I turnover a lot of work, about 90% of customers are payment up front or payment on collection. It is a few offenders that just keep taking the p***. They know it too! I get the feeling that a lot of these places are just using me as a free overdraft and it gets on my nerves. I have a very very low percentage of bad debt. I can easily count the bad debts on one hand since I started, but by the time I have got money out of people, they and others are already late with the next months. What a pain...:mad:

egan007

Turn that 90% ionto 100% and you solve your problem

djk1000

Some people expect credit, with the amount of stuff they want to buy from me, it's not realistic to turn them down. I do insist on payment upfront for the first few orders though.

boomer_ie

Its an eternal problem with the job, I have a system where new clients pay up front but after a while they get 30 days from invoice date, not 30 days from the end of the month as one crowd tried (although half their invoice is still outstanding so the penalty clauses are going to be chucked in their direction tomorrow). The penalty clauses basically amount to a removal of all discounts applied to the invoice and interest can be added on as well. This is both in the T&C and of course the interest bit is in some legislation that I cant remember however it is quite tiny and is only really a deterrant for larger amounts outstanding.

Another option which I am looking into is a further 5% discount if paid in 14 days, that should hopefully improve the casflow nicely.

EKRIUQ

cormie wrote: »

What's the story with debt collectors for things like this? Is that a bit extreme? How much do they charge anyway?

There's plenty out there but there called "credit control company's" and you will get your money but its going to take months if someone refuses to pay. The cost is also a factor and really only worthwhile if you think the person is never going to pay, better off keep sending statements and phone calls, I don't believe in a lot of cases its because people won't pay it just laziness

heggie

know exactly what you mean djk1000! hopefully you can find more work so you don't have to rely on these late payers, and can ditch their custom

m83

complete n00b question but what method to companies most commonly use to pay eachother?

fintan

A few suggestions

1) Anyone you give credit to make sure you get a purchase order from them and a signed confirmation that they are happy with the goods you supplied. This will make it easier if you have to go to court

2) Anyone who has been slow in paying, the next time they want to place an order, explain that you will need 100% upfront

3) Have you considered offering early payment discounts ?

4) If its a small business and you do both sales and credit collections, you might find it easier to seperate out the two jobs and get yourself a part-timer to manage the collections eg. someone who has all day to harass people secretarys / accounts departments etc

Culchie

djk1000 wrote: »

Ok, this is a bit of a rant, I need to blow off some steam.

I have been in business now for over 3 years (business to business sales). I am absolutely sick of trying to get paid by people. Every month is the same, I have a list of debtors to get through and by the end of it I feel like hitting something! I go through the motions, from friendly phonecall to sitting in their office and refusing to move and like most business owners, I hate doing it.

Over the past few months, I have noticed that it is getting tougher and tougher. I have worked hard with my staff to grow sales and bring on new customers, but at the same time, more and more of my time is being taken up by people that just hate to pay!!!

I pay my bills on time, the only times I haven't are when I have been let down by slow paying customers. In those situatons, I contact the supplier and explain the situation straight away.

Why can't business owners in this country get their act together and bring a bit of professionalism to running their businesses? does anyone have any suggestions?

I'm in a similar business to yourself (primarily b2b as well), and without doubt the last couple of months, money has been harder to get in.

We're mad busy, but it seems that the economic plight is now starting to bite at our customer (that's my take on it anyway).
I'm tightening up alot now on my credit policy, like yourself, I haven't had a bad debt yet, and I need to keep it that way.

antoinolachtnai

Why don't you charge more? There is one particular company in Ireland (in an industry related to yours) which is famous for paying late. Their accounts payable department is basically legendary. Everybody knows that they pay late. They get charged more as a result. The people in purchasing know this and accept it.

Credit is just something you have to price into the job, the same as ink and paper.

jetsonx

djk1000 wrote: »

I turnover a lot of work, about 90% of customers are payment up front or payment on collection. It is a few offenders that just keep taking the p***. They know it too!

1) next time these jokers order from you - tell them your "new" terms i.e. payment in advance or delivery.


2) if they don't like it - then "fire" these customers. Let them mess around
someone else. If they don't like it - you will not be losing good customers anyway - you will only be losing liabilties. No business wants liabilities.

Jessica84

jetsonx wrote: »

1) next time these jokers order from you - tell them your "new" terms i.e. payment in advance or delivery.


2) if they don't like it - then "fire" these customers. Let them mess around
someone else. If they don't like it - you will not be losing good customers anyway - you will only be losing liabilties. No business wants liabilities.

I dont think any customer like "payment in advance or delivery" except your regulor customers. it really takes time to find a good customer.