Ideas/thoughts/opinions needed please

[sherrardk]

Himself has his own business supplying/installing wood burning stoves. People are so slow in paying that his cash flow (and mood) are suffering. I think he should offer a discount for same day payment by BACs and he thinks he should just stand there until he gets a cheque. Which method do you think would be most effective or have you got a different idea? (PS - all ideas gratefully received as I am fed up of his moaning.)

[237SJ]

I agree with your OH. The price is the price and people should pay up regardless. I remember my Dad had problems with the occasional bad payer but that is one of the perils of business.

[LoftyLottie]

I agree with your OH. However, rather than offering a discount for same day payment, he should levy a charge on late payment and make it clear in his terms and conditions.

(Mr LL is just installing our 2nd woodburning stove (the last one is 30+ years old and they have much improved since then). He is also lining our chimney for the first time. Can we borrow Mr S please to give him a hand!!)

[sherrardk]

Hi both - Lofty, the mood he's in you wouldn't want him around! (Good job Mr LL is doing this now as there are plans afoot to stop anyone putting a stove in who is not qualified. Make sure you have got a carbon monoxide monitor thing too.)

[mazie]

I think he should ask for payment on completion. You dont go down the pub and ask the landlord if you can pay for your pint next month..... My husband was a carpenter for 40+ years and it was alsways cash on completion, he told them that at the start of the job and never had any problems. Just manage your customers expectations... Anyway good luck with the Grumpy old Man Sher xxx

[askyourgran]

I agree with your OH, he has quoted the price he expects to be paid for his work. Perhaps the invoice should say in large letters that full payment is required within 7 days, (or even ask for a deposit).

[sherrardk]

Hi all - he does take a deposit (so that he is not lumbered with a stove that no one else wants). I get mad on his behalf, for most people a wood burner is luxury item - if they haven't got the money they shouldn't have one installed. He has only been in business for two years and it has been a struggle getting to this point but now he is really down about it all (I think he has done well to survive this far as he has had a major setback but we got over it).

[starone]

Very difficult. It would be nice to get a deposit but people don't want to give a deposit in case you run off without doing the job. A bit of mutual trust would be nice too. A carpenter friend of mine made a beautiful gate for someone who didn't pay after many requests . In the end he took the gate off the hinges loaded on to his lorry and took it away. He reckoned as the bloke hadn't paid it was his and although he could not do anything else with it - it was purpose made - he was so incensed he wouldn't let the other chap have it. My opinion is that people should pay their debts and if they know they cannot afford it they should not have it in the first place.

[boxtops]

Is there such a thing as a postdated cheque, these days?
The other option is to state on your invoice very clearly that your terms are 30 days from completion, following which (whatever wording is legal) he will take steps to recover the debt through the courts. Do his customers sign a contract before he starts the work, laying out the payment schedule?

[seadogg]

There seem to be so many people wanting to have them at present he ought to be able to insist on payment on completion. Late payers are often up to their hocks in debt and some may never be able to settle. A sole trader or small business cannot afford the services of bad debt collecting companies.

[Barmaid]

I can't offer any advice Sherrard - I am in the same position and it pisses me off. I recently looked at my aged debt and was shocked to find that some of it was more than 4 years old. I can't sue on a fee though (my code of conduct won't allow it), so I am effectively offering free credit. Not that I get any free credit offered to me.........

[sherrardk]

I am really proud of the way that my husband has started this business and over come the huge obstacles that have been put in his way. He hasn't got loads of cash sloshing around the place and must be owed about £10k at the moment (which he needs for stock, etc). He gets so down about it and does the man thing of not talking (which obviously affects the rest of us). He also uses me to chase up the people who haven't paid (which is a bit of a problem if thing 1 and thing 2 want some attention).

Sorry for ranting everyone, it's all just so irritating.

[tamborine]

Could he charge an APR, high interest on debts. His customers are obviously householders and would have a lot to loose.

[sherrardk]

Hi Tambo - I did think about that but I am pretty sure he would have to be a licensed credit broker.

[tamborine]

Surely anyone can charge interest on debts, though there may be standard rates. Council tax rates would be a good guide.

First you threaten the charge if the bill isn't settled within 14days and initiate the cost after.

[albaqwerty]

Couldn't he state on his invoice that until the goods are paid for in full they remain the propert of Mr S

I realise that his labour isn't included in that term but am unsure about the law on this matter.

My OH when self-employed did about 15 grands worth of work (many moons ago)
only received 5 g and the house-owner never received his 'fit for living abode' certificate. Excuse me it's late and was a long time ago

[tamborine]

Here:

https://payontime.co....y-interest-calculator

[Rik-H]

Sorry to but in....but could he hold back any certificates he give untill they pay. I got certs. when mine was installed.
If it's any help (whichI know it isn't!) I go through this myself and I can see in my wife's eyes that I'm being a grump. Not easy.

[sherrardk]

Hi Rik H - the certificates are only important if you want to sell your house really. He's still being a right misery about it, and still getting me to be his debt collector! It's just the general attitude of the customers, quite happy to pay a deposit but really slow in coughing up the rest of the dosh. I wouldn't mind so much if it was something that people really needed, wood burning stoves are a bit of a luxury item really (well, the majority of the ones he fits are, some people around here have got more money than sense).

[welshlibranr]

Sher, I see where you are coming from, but the price is the price, however, maybe he should load the price by about 10 or 15 per cent and offer a discount for early payment, then it should help to get the client to pay up sooner!......

[MarkRae]

Has he considered factoring?
http://en.wikipedia.o...i/Factoring_(finance)

If, as you say, most of his customers "have more money than sense", he could simply up his prices to cover the factoring costs...