Home – New Forums Tell me straight… Chasing overdue invoice

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  • #995022
    nosakao
    Member
    • Total posts: 5
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    Hi everyone.
    I would like to hear your opinion about our situation.

    My husband and I have been running our company for last 10 years.
    We recently have an issue with a few customer not paying our invoices.

    We did a job for customer ( we know him as our friend’s friend ) – diagnosed issue on equipment, repaired and serviced at his restaurant in Feb 2016.
    That was first job for him.
    Our accounts team has been chasing payment for last 5 month.

    He told us he is waiting for insurance.
    Next, he told us he needs to talk to our technician.
    He wasn’t available to talk for a while.
    He asked us to provide a report for insurance claim after 3 month from the date we did the job.
    Then he told us he is waiting insurance again.

    Basically he won’t pay us untill he gets money from insurance.

    We gave him first and final letter to pass on to debt collections and we will make fInal decision tomorrow.

    I can not believe the way he think and the way he treats us.

    One day we eat at his restaurant and tell him send us a bill we pay you next year.
    I would like to see his reaction.

    #1199590
    Paul – FS Concierge
    Keymaster
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    Hi And Welcome to the Forums. It is great to have you!

    I have had a few customers not pay and it is very painful to think that people want to use and abuse others.

    I feel for your situation – it is hard to stop thinking about isn’t it?

    I feel it is important to think about it from a business point of view and try and leave the emotion behind.

    And get your business pointing forward again rather than looking back.

    #1199591
    nosakao
    Member
    • Total posts: 5
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    Paul, thank you for your nice comment.

    I know that it’s not worth it.
    I better move on and focus on business.

    But I already feeling better speaking out here also I realised lots of business have same issue.

    #1199592
    bb1
    Participant
    • Total posts: 4,485
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    Just send it straight to the debt collector, friends friend or cousin, doesn’t matter, just do it

    #1199593
    roxanne40
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    • Total posts: 82
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    You need to make the decision as a ‘Business’ decision not a personal one. Send it to the debt collector. Stand strong and firm and inform them that it is a “business decision” not a personal.
    Someone wise once said to be ” do it for the sake of the business”..

    #1199594
    bb1
    Participant
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    L-M-F, post: 236443, member: 80117 wrote:
    It’s no wonder more and more businesses request on the spot payments.

    This was the best decision I have made for my business. 100% upfront or nothing.

    I think I have already avoided 2 non payers. One of them said “I will pay when cashflow allows it”….. No worries, we will make your order when you pay….

    That works ok in the retail / goods industry. But is far harder to implement in the services industry. I don’t send any of my giftware until I see the colour of there money (or electronic confirmation), but with most service industries it is not viable.

    #1199595
    bb1
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    L-M-F, post: 236445, member: 80117 wrote:
    We had a plumber in last week at the restaurant to repair a tap (big company). Asked for payment after servicing (cash or Eftpos). Tax invoice issued electronically with his IPad.

    Is this something that would be too hard to implement for most service providers?

    Well I know me for sure, I have 5 jobs lined up for today, and I will see a total of zero clients on site, do I wait for them to turn up at night for payment.

    #1199596
    Easysmb
    Member
    • Total posts: 84
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    Hi There,
    The key for debtor management is to have credit policy in place and enforce the policy in strict way. You need to clarify your process and enforce within your business, which includes debt collection agency’s involve.

    With the enforced credit policy, you will be able to identify bad client and mange the engagement with them effectively, but not to cause a big problem in the end.

    Also need to adopt technology to issue invoices earlier and collect cash earlier and control the accounts receivable problem.

    If your business is involves field work, you can consider some job management solutions, like ServiceM8, which is job management for small business with field work force, you can check out to see if it suits your business.

    Good luck

    #1199597
    Byron Trzeciak
    Participant
    • Total posts: 423
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    What Michael said is very true. Get your terms of trade in place so that the debtor signs it before the work begins and is aware that debt collectors will be used.

    If you need to get this organised then http://www.jmacreditcontrol.com.au might be able to help you. I recommend them.

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