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

[Niklas Richardson]

Here's some reading for calculating charges and interest for the "new" late
payment regulations:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/138129/bis-13-705-a-users-guide-to-the-recast-late-payment-directive.pdf

Also, calling the accounts department regularly chasing the debt will help.
I know it's a pain for you. But unfortunately if it's a business's decision
to not pay on 14 days then they won't until they feel the screws being
turned.

I had a client that would pay at 90 days as that was their policy to all
invoices, regardles. They wouldn't change that. So, we upped our rates for
them to cover that delay in payment.

Regards

Niklas

--

Niklas Richardson
Kyan Ltd.

Main number: 01483 548 282
Mobile: 07590 568 417

http://kyan.com

Registered office: 171 High Street, Guildford GU1 3AJ. Registered in
England: Company number: 4575679


On 8 August 2014 11:19, Niklas Richardson <niklas at kyan.com> wrote:

> If you have it clearly stated in your terms that you'll start charging
> them interest I'd follow through with that with clear letters after they're
> late.
>
> Send a reminder that payment is due in 7 days.
> Send them a letter when they're 7 days late telling them that if they
> don't pay within 7 days you'll start charging them interest as per your T&Cs
> If they still don't pay send them a letter telling them interest is now
> accruing and you'll be sending them a separate invoice for that interest.
>
> I'll dig out the link to the proper templates.
>
> I'd send this direct to the accounts department. Cut out your contact. Let
> accounts escalate.
>
> Regards
>
> Niklas
>
> --
>
> Niklas Richardson
> Kyan Ltd.
>
> Main number: 01483 548 282
> Mobile: 07590 568 417
>
> http://kyan.com
>
> Registered office: 171 High Street, Guildford GU1 3AJ. Registered in
> England: Company number: 4575679
>
>
> On 8 August 2014 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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>
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