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  John Cooke September 27, 2012 at 3:40pm

   I certainly wouldn't do business with anyone with whom I had to start court proceedings, but I think it's brilliant that you have enough business that you can afford to weed out the late payers.  My own experience wiyh commercial business is that even companies that state their terms are '30 days' will manage to drag payment out to 90 or 120 days.  I understand some large companies actually state tersm of 90 days and still pay well after that.  It's morally wrong and, I seem to remember, one of our usless governments made it illegal (?)  but if you want to deal with big companies that's the price you pay in the current climate.  Well done on making a stand but somebody will filll the gap you leave, Gordon.
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  Gordon Bowerman September 27, 2012 at 6:19pm

  they already have 4 times over ;) had a call asking if I wanted to go back as they cant get anybody to stick with the 120 day payments  but commuting into the city early hours of the morning and not knowing when your going to get paid no thanks. As for the court proceedings it was a last ditch attempt at getting paid and once paid never worked for them again.
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  Woodster September 27, 2012 at 6:26pm

  Its very difficult, well totally impossible to figure out, who is going to pay on time and who is going to create more unpaid time chasing.

  The only possible method to prevent this, is a contract, one that states your terms of payment, making sure your invoices also reiterate this and follow the invoice trail directly to the account department or administration. It won't stop the late payments but it might help with whittling out the companies who wish NOT to sign your terms. Its not always possible to turn work away, I don't live on cloud 9, but our clients are in the commercial sector and we have a very strong pay rate and invoices are usually paid on a monthly set rate with extra's being charged separately. 

  We still have to wait on the Corporate Clients though, strictly 90 for the big firms and we have to suffer it or turn the work away.
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  Lawncare-4u.co.uk September 27, 2012 at 8:32pm

  did they pay interest allowed legally .

  20 days is max for me .  usually 7 or less.   i wont have it any other way .

  the work is done satisfactory so pay up.   no tradesmen would wait long if at all.
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  Gary RK September 27, 2012 at 9:15pm

  Like a lot of situations discussed on LJN, it does depend on your marketplace & client base..from small resi - up to large national. There is no 'one size fits all'. We have most invoices paid with 30 days, but have a few large clients that pay @60 days.

  We have adjusted to their cycle and now do not have a problem. They are therefore regular payers and we value their income 12 months a year....to my mind a main benefit of commercial work.

  We have not experienced any non-payers in this scenario, so if you are set up well enough and have multiple commercial clients it is a fact you have to accept for the security of year round work.

  I am not saying I would not like them to pay within 30 days as it would be cash-flow positive, but it is a cost you have to 'pay'.........
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  Austin Powell-Allen September 27, 2012 at 10:48pm

  this is a tricky subject and i agree fortunity not come across this to much for regulars as most are domestic customers and I ask for payment after each visit or if on monthly invoice i expect payment within 14 days. the trouble customers i find are once off espcially rental although i try to do business on trust asking for payment after the job
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  Gary RK September 28, 2012 at 6:26am

  I certainly would not accept +30 days from a domestic client except in very extenuating circumstances...ideally it would on the day or within 7 days.

  Do you guys generally invoice on the day (direct to customer) or send in post after visit ?
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  John Baker September 28, 2012 at 9:00am

  I hate doing invoices so i wait until end of each month and send them out with the monthly staged reminder invoices....along with a flier for mowerthon!...

  http://www.filedropper.com/2012-07mowerthonleafletforprint
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  Nick @ NM Garden Services Ltd September 28, 2012 at 6:38pm

  
  This is almost what I was about to write about my company!!!!
  Duncan said:

  On the domestic maintenance side we make, mainly, weekly visits and deliver invoices at the end of every month (on the first visit of the next month). Hand it over in person or put it through the door if they are not at home. All of them pay either there and then, of by return via post, as soon as they get it.

  Apart from one. One customer takes their 30 days, sometimes more, sometimes six months. This doesn't effect our business really but I do find it a bit annoying as they have already had thirty days on the first visit they are being invoiced for, if you know what I mean. (they've also had 21 days on the second visit of the previous month, 14 days on the third visit, 7 days on the last visit). I just grin and bear it really, a bit rude though, as the fuel to get to their place and run our machines always comes off of our account long before we ever get paid for it.

  With all other customers they pay us in the first week of the month and we have the commercial mastercard set up to come off of the business account in the middle of the month, so the money spent on doing the previous month's work is always in the account before it leaves again.

  Our commercial clients, we just fall into their invoicing system mainly, you never wait more than 30 - 45 days though.

  Landscape construction, 50% up front, 50% on completion, all signed and agreed on paper before the work starts, never ever had a problem on that side of things, touch wood.
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  Gordon Bowerman September 28, 2012 at 11:45pm

  I invoice at the end of everyday using freshbooks great bit of software.