How To Get Your Invoices Paid. What Terms Should I Use

[nellypope]

I am a sole trader (Graphic Designer) and new to it. I managed to get rather large client on board and over the last 6 weeks or so I have completed a number projects for them. Being a large company they issue PO numbers and then I invoice immediately giving 30 day terms for them to pay. For two of those invoices that 30 day deadline has been and gone. I emailed their accounts department yesterday with details of the two outstanding invoices. It was friendly nudge but the reply I got was very curt, they said they only pay on 45 day terms and I could expect payment on the next pay run.

They didn't say when this pay run would be.

They owe me for a number of invoices, altogether it only amounts to around £400 but as a small business I need it.

I was not told that they had 45 day terms, I simply advised to issue an invoice, can I challenge this? Also should I complete anymore work.

Really not sure how to progress on this. Any advice?

[Barmaid]

Were the "45 day terms" ever put into any form of contractual agreement with you? For instance, does it say on the PO number "we pay on a 45 day cycle"?

[ummmm]

This happens loads. Big firms dictating the terms.

Have you tried phoning the accounts department? It's usually better to talk to an actual person.

[rockyracoon]

My OH has this all the time, the trouble is if you create too many waves they just won't use you so he usually goes to the person who ordered the work and puts a bit of pressure on them to get the invoice paid. Local Councils are the worst, don't do any work for them, you'll wait frigging ages to get paid.

[nellypope]

Thanks everyone. It's a little odd, if I take their 45 day rule, then one of the invoices is due on Thursday, seems a little odd that a payment run hasn't taken place since then?? They are also conveniently unavailable everytime I call. I have sent an email, hopefully striking the right balance between curt, and "Pleeeeease pay me" . . . perhaps it was a little more on the curt side. Fingers crossed.

[Barmaid]

I do sympathise. (I am still chasing invoices from 3 years ago!)

It is right what has been said - if you chase too hard, they may not use you again. However, if they are a large company, the Purchase Ledger dept probably doesn't actually talk to the instructing client and so they may not care.

Check to see if the 45 day rule is referred to in any terms and conditions or purchase orders. If it isnt and you want to go in hard, check out the Late Payment of Commercial Debts Act:-

http://www.legislation.gov.uk/ukpga/1998/20/contents

That is an implied term into every contract unless it has been varied by agreement. You get a fixed fee for every late debt, plus interest. It might be worth a crack.

[mosesg]

I have worked in a purchase ledger dept of a large company and we did a payment run every Friday. Often we would tell people that their invoice would be paid in the next run even though it wasn't approved in the system to be paid. We also took 45 days to pay, unfortunately it is the small companies that suffer.

[ummmm]

And some companies we did work for wouldn't pay until we sent them a statement.

[snags]

Some useful tips here:

http://www.graphicdesignblender.com/designers-guide-to-invoicing

[tamborine]

I use this one

http://static.wishuponahero.com/wishes/2013/9/23/a0fb977e9f8a040b7bbb3275249d3543.jpg