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I have been talking to other tradesmen about payments and it seams that at the moment no one is paying!!! ???
I have tens of thousands outstanding from people we have worked for years and all the feed back I am getting is that it is a major issue for everyone in our industry, AND others, electricians painters etc, it seams a subby issue.
how is every one fairing ??
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I have 4-5k outstanding - not much in comparison really, more smaller stuff as well which is a real pain having to chase more than one at a time - we were looking to expand this yr but rumors of the problems you mention have made us hesitant to pursue - will keep trucking on as is for a while I think - I know many people refusing to work with some housing groups due to non payments and getting d'd around - commercial side a bit better but they all milk there "supposed" three months...
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It is a constant battle - some things that have worked for us are:
1. Get your invoices out promptly - and on domestic have seven day payment terms (just having this on the invoice will mean you get paid faster)
2. Get their email address and email invoices - often they will pay immediately while at the computer
3. Chase every debt no matter how small - it's your money - you earned it. Try to get hold of the customer at home first or on their mobile. If they don't return calls ring them at their work. Leave a message with the receptionist if you have to saying its about an overdue debt (this one is particularly effective).
Ensure you have terms and conditions that state payment requirements and allow you to go to debt collection if necessary with costs passed on to customer.
I haven't found people not paying to be a problem (apart from commercial jobs where they are taking us right to the last day of the month). Emailing invoices has worked a treat and often resulted in 24 hour turnaround of payment. Get all the information you can from the customer before doing the job e.g. phone number, mobile, email address etc. We tend to have customers by referral and stick to our regulars - the ones we know. Often the initial call if they don't pay is along the lines of - is everything ok - do you have a problem with the job etc.
My biggest headache is retentions - and after the Mainzeal fiasco I am keen to see Govt implement some legislation around it.
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There used to be a bad debtors website but I can't remember what it is called. Any ideas? Perhaps the retention issue could be raised with local MP. Could be something to make them promise in election year. Then again, they could just lie
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Bad debtors website??? Please share! :o
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I got so sick of bad debtors that I put it in my terms and conditions of trade that bad debtors get posted on my web site. As far as I'm concerned they stay there for ever and a day until they pay. I've had a couple threaten to take me to court but my response is they can explain to the judge why they think its unfair for their name goes in bright lights. Happy to take their name down if they pay.
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hmmm, I like your idea Wal :)
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I look at it this way. Everyone holds us accountable for our work but those above us aren't held accountable nor are those below us. It is left up to us to seek accountability for ourselves and the payment of invoices falls into being accountable as well.