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Join Date: Nov 2008
Location: North Ryde NSW
Thanked 33 Times in 31 Posts
| | Re: Invoice Payment Terms
I cut out all these payment terms and just use CASH on COMPLETION.
Works a charm, every one knows exactly what they are up for and in the last 15 years Ive never had a bad debt.
Start operating on a cash basis only, NO credit.
The majority of my customers didnt have a problem with this when I changed over from a 30 day account system to cash on completion. Its about educating your customers. They expect to collect their wages or salaries regularly so do you, so stop pussyfooting around CASH on completion.
Remember you have worked very had to earn this money so ASK for it dont give discounts or credit because thats how you attract BAD DEBTS.
One of my companies used to do a lot of work for Managing Agents of properties owned by one of Australia's wealthiest men. Unfortunately two of my employees were involved in an accident and did not let me know until several days later, consquently we lost a very nice contract and the manageing agents refused to pay us. I'm talking several thousands of dollars here. I wont go into the boring details but it cost me a small fortune chasing what they owed.
Dont fall into the trap of being a credit facility for you clients ( they have more money than you ever will) so become payment on completeion.
Let those in you industry who are desparate offer dicount term but stick to your guns . Initially you may loose a little bit of business, but your quality and honesty will bring these customers back, and they will bring others.
Bite the bullet you are a professional who does quality work at a reasonable price so WHY are you DISCOUNTING.
PAYMENT on completeion or better still a deposit so that you can start the project and then balance on completeion.
Just remember the customer NEEDS you as much as YOU need them, so why DISCOUNT your services.
Thats my opinion.
__________________ Patrick Burgess
(old and eccentric
WoolSafe Carpet Complaints Inspector www.woolsafe.org
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