[LRUG] [FINANCE] Startup/finance question around invoices

[Sam Phippen]

Hi Sleepyfox,

At my company (Fun and Plausible Solutions), we have a clause in our contract which says work stops if a client is 4 weeks late (interest starts after 2). That way the resolution is easy, obvious and automatic. We always let them know this will happen when we’re signing and so the expectation is there. I think you’re probably within your rights to withdraw the person from their team if they continue to be late, but obviously having it in your contract is always better than not. I hope that helps :)

Thanks
—
Sam Phippen

On 8 Aug 2014, at 10:59, Sleepyfox <sleepyfox at gmail.com> wrote:

> Apologies if this is off-topic, but I know a lot of people on the list run their own startups or consultancies and so may be interested in the discussion.
> 
> # Challenge
> I have a client that for the third time running is late with paying their invoice. They have one of our team members working for them out with one of *their* clients (DWP), but despite our client being a multi-national consultancy employing 1600 people our best attempts to try and gently escalate the issue within their organisation have met with responses ranging from "stop rocking the boat", "why are you wasting my time", "go through proper channels" and "this is business as usual".
> 
> I'm wondering if anyone here has any helpful advice on how to persuade clients to be more prompt with paying up. We're very clear with our T&Cs (payment due within 14 days of receipt, interest due afterwards at X% rate etc. etc.) and we're very prompt with issuing invoices and very responsive to any queries from clients' finance departments or accountants.
> 
> I'm at a loss for what I can be doing better/differently - any clues?
> 
> Thanks, and apologies again if this is [too] off-topic,
> 
> Fox
> --
> "What does the @sleepyfox say?"
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