How do you word your invoices?
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I agree it’s a great idea to set payment terms up front. My proposal includes: my name, clients name, description of the work, when & what will be delivered and payment terms (when due, how to pay). Before I start, I require the client to sign and send it back to me.
I do the same with changes along the way.
Glenn -
Agree with Modelhead, and setting terms in writing at outset, not always necessary in invoices. That said, such wording is not uncommon. For example, printers here in Calif. often layout a penalty schedule on the bottom of the page.
You could just put "Go ahead, pay late. Make my day." at the bottom.
I have professional clients who know quite well that the invoice is my actual monthly pay check, but they seem to be fine with funding their business through me, for a few weeks longer.
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I do the same thing... I just cut and paste this from an invoice.... it honestly doesnt do anything though because i'm usually too scared to piss off the client..haha.. actually, i have sent updated invoices after a couple months, but i have yet to actually get the 1%
I think this is stated in my proposals as well, i cant remember..
Total due in thirty days. Overdue accounts subject to a service charge of 1% per week.
I do like the bit about the 5%... encourages repeat business too.
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Wait until they are 30 days overdue then send them this image with caption.
Could you please pay your delinquent account as my family is starving!!
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Pete, I'm going to have to use that one!
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I have run into late payers for my freelance work... generally persistent reminders do get paid... but for some new customers we have done a "pay up front half" type of arrangement.
but for another small business I own that is run by my wife our main client is late paying every other invoice.
We had stated at the bottom, from the start, the date by which payment is due (we were giving 10 bus. days)then we charged 5% late fee as was also specified on the cover letter to the invoice, as it was being faxed at the time.
but I don't think the amount of the late fee was specified on the invoice itself...they were almost 2 mnths late last month, and I got them to pay by saying that we would 'waive' the late fee this month if I received it w/in 5 days from that phone call.
that worked.
but if UK has 30 standard and everyone knows it, no reason to put it on there. I'd just live w/ it. A phone call a day after that could get you paid, or just not hired again... you have to take each case by case.
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'Dear Sir,
as you are aware and it is undoubtly an oversite on the part of your accountant, the following request for payment is overdue.
I have regretfully forwarded this to Big Lenny, who will be visiting soon with the boltcutters....'
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Adding my thoughts here,
Invoices are amounts due for the period covered and should not include contractural language. Payment terms and late payment are contractural. I try to put a late charge as the last paragraph before the signatures and when questioned by clients about late charges I always say that if they pay their bills on time, there are none and if they persist in complaining about late charges, then they're not the right client because they're telling you they WILL be late.
After the invoice is sent, the following month we send a statement not another invoice.
We also tell clients that payments due after a certain number of days then we reserve the right to stop working.
Hope this helps.
Allen
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Alex
I often find that the clients that insist you do their work in the shortest time are usually the same clients that take longest to pay. Only option, get half the money up front. As a freelancer I make it quite clear to all clients that I don't start work until I have 50%. On completion I expect payment within 7 days (unless it is a larger sum). If they want better terms, they can pay more for the same job elsewhere. If they are employing me I'll save them some money but those are my terms. Most of the time, clients are happy that they are getting a good deal and accept those terms.
@unknownuser said:
Under UK law, if there is no contract to specify otherwise, an invoice is due within 30 days of receipt. After 30 days, you have the legal right to charge a late penalty charge (about £50), as well as interest.
I think it would be very difficult to enforce the payment of a penalty charge.
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Just came upon this thread, oh woe is me too having to ask for my money!
I've just thought maybe I/we could use what both my hardware supplier and boatchandler use.
To quote:" A settlement discount of 10% can be taken if this account is paid within our trading terms." (Which is 30 days from the end of the month.)
It's clever because its carrot not stick, I know that I try to pay them on time and when I can't I don't have too much guilt over it.
Of course this implies that you can afford the discount or that you increase your rate to cover it, which sounds the go, almost a win-win.As Jean would say "just ideas"
baz -
Ensure you have a 'proper agreement'.
Ask for "your money" [politely] NOW !
Point out [politely] that they should you pay within NNN days, from "NOW".
Point out [politely] that if they don't pay you "NOW" that they might be subject to 'penalties' [be vague ?]...
Since the anonymous 'accounts' are often dealt with by someone who is quite different from the guys you initially had dealings with, then c/c those guys... They might have a conscience ? ...
If all else fails appeal to those guys' 'better nature'... if they have one...
If 'all else' fails sue them !!! ...
We are all in the same s**t ! We can only hope that 'they' see that they can't stop the "wheel going round" and then continue on as they are.....
Rant over.
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