[TVCS]

Hi guys.

Been busy over the last few months working for a housing association, doing cleans and re decorating.  Been putting in the invoices but they have got behind by about 2 months with some of the payments.  ( its beginning to hurt now  )   
My point is that I want to add on the bottom of all my invoices now about late payment interest charges but am not sure as to what % is charged for late payments.  When we started the work with them they stated that payment would be paid monthly on the 23rd of every month and all invoices put in before this date would be paid.   
I had a natter with the contracts manager and he has got onto the wages department a couple of times but they are still dragging their heels. 
Any advice  always welcome.

[mk1]

some thing like this ?? on the bottom of all our invoices and used 

PAYMENT IN FULL IS DUE WITHIN 14 DAYS FROM INVOICE DATE. WE RESERVE THE RIGHT TO CLAIM STATUTORY INTEREST AT 8 % ABOVE THE BANK OF ENGLAND BASE RATE AT THE DATE THE DEBT BECOMES OVERDUE IN ACCORDANCE WITH THE LATE PAYMENT OF COMMERCIAL DEBTS. (INTEREST ACT 1998)

[cml]

Remember! Just putting information on the bottom of your invoice does not guarantee they will pay any quicker.  You might want to consider putting a framework in place for chasing your invoices before payment is applied.

Unfortunately we found ourselves in the same position and had to kick in with our debt chasing policy.  Some people may think they may lose their contract is they keep ringing or writing to their clients but believe me when you operate in a systematic way they start paying attention. After issuing a number of late payment invoices payment came in on time.  However now and again they do lapse but a late payment invoice or warning sees it right.

With Housing Associations or Local Authority you have to be proactively chasing your invoices as some officer who authorises these for payment are quite happy to leave your invoices at the bottom of their in-tray; they only seem to remember to send it to their finance department on production of a late payment warning or invoice. 

As a suggestion, you may want to inform your client that if no payment is received in X days you will be exercising your right to charge a late payment fee of X% or £'00 each month/day (depending on method used) until payment is made.

Good Luck!

[Les]

I see the point for the 'Stick' way of handling late payment, but how about trying the 'Carrot' approach ?

Work out your fees, add the amount you would charge for late payment, but add a discounted price, (the price you really wanted in the first place) for 'early settlement, which can be any reasonable period you wish to choose. 

We all get a similar situation every day...the shops are now beginning to offer, 'Pre end of event prices'.

Buy now for ONLY  £299, after event price £799  and even if your as cynical as I am, you have to admit that it works.

Hope that helps.

Les

[mk1]

there is also the 5% trick invoice for £200.00 + 5%=£210.00

if this invoice is paid within x days we will deduct 5% works with some.

[TVCS]

thanks for the replies people.  sorry not been online for a while thats why I've not replied.

Had a natter with the accounts department and they have agreed to make our payments or a 2 weekly basis.
Result

[clinton]

Sounds like you have made a good arrangment there and a good example for us all to follow

Least you will be geting paid every couple of weeks and helps with the cash flow

[poleman]

Payment in full is due within 30 days from invoice date
We reserve the right to claim statutory interest at 8% above the Bank of England base rate at the date the debt becomes overdue in accordance with the Late Payment of Commercial Debts (Interest) Act 1998."

[TVCS]

Thanks for everyones input and advice.
Ant TVCS