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Nat S
Joined: 15 Aug 2008
Posts: 3609
Location: York
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 Posted: Thu Nov 19, 09 1:25 pm Post subject: protection against non-payers |
 
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If you charge for your services rather than an object/product then you would bill someone for your time after the event. What if they then turn round and deny all knowledge of you ever doing anything for them and refuse to cough up?
Presumably you can make them sign something beforehand saying 'I'm going to do X and we've agreed £X for this', but they could then deny you DID work Xhours and thus are only entitled to 20% of the £X.
What can you do about that? |
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Chez
Joined: 13 Aug 2006
Posts: 15132
Location: Quantock Hills, Somerset
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| Posted: Thu Nov 19, 09 1:36 pm Post subject: |
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I think that if you get them to give you a purchase order before hand, that counts as a contract. And then you put on your invoice something like 'invoices should be queried in writing within fourteen days.
That way, the PO is a statement from them that they have asked you to do the work and the invoice (plus the chance to query) is the statement that you have done it.
I mean 'statement' in a 'stating it' kind of way, rather than accounting-wise.
I also understand that the issuing of the PO means that they have to pony up even if they cancel. But I am not sure about that. |
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chicken feed
Joined: 27 Aug 2009
Posts: 435
Location: the fens cambs
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| Posted: Thu Nov 19, 09 1:44 pm Post subject: |
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we find the only safe way if unsure of the customers ability/willingness to pay is to first set out the job as a quotation stating payment terms ie. payment within **** days or payment on competion of works when they accept your terms get them to accept in writing quoting a order no if the work is for a larger company or for a smaller job just an acceptance of your terms. having been in business for over 25 years we have only had two non payments both bigger firms that went bust (touching wood)
we have had a few dud cheques that have had to be sorted if this happens we insist on cash. the other thing is if you state payment within say 7 days on day 7 start chassing the money and keep chassing.
as well as running my OH bussiness i was also credit control management for a number of years to a corporate company
p.s just a thought you could also raise a proforma invoice so they have to pay up front until you build up a trust/understanding |
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Penny
Downsizer Moderator
Joined: 18 Sep 2005
Posts: 17624
Location: Planet, not on the....
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| Posted: Thu Nov 19, 09 2:23 pm Post subject: |
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We always take payment up front, unless very well known. |
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Toffer
Joined: 01 Nov 2009
Posts: 85
Location: Greenwich (ish)
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| Posted: Thu Nov 19, 09 2:31 pm Post subject: |
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Basically you need to have a contract in place, doesn't necessarily mean that you need to spend money on lawyers, a contract is formed when the following conditions have been met:
1) There has been an offer of terms and those terms have been accepted (this is the signatures at the bottom)
2) There is a an intention to be bound by contractual terms i.e. not an unofficial agreeement between friends or family
3) The agreement is legal, lots of people fall foul of this one, if you accept cash to avoid the VAT, the contract cannot be enforced
4) There is "consideration" from both sides. That doesn't mean time taken to think about it, it means both sides have to offer something of value to the contract, i.e. you give a service and they pay you cash
Be careful about using the fact you've stated your terms on a quotation, a quotation is not a contract, admitedly a lot of your customers may not know their contractual law that well but if you're dealing with larger companies they will only accept properly agreed contracts.
You can also get stuck into something called "the battle of the forms" whereby because each round of paperwork will refer to either the customer or supplier's terms, there is never acceptance and therefore never a contract, the law sees this as a series of counter offers rather than a contract and the terms deemed to be applicable will often be the ones last exchanged before the work was done, therefore agreeing to the terms by conduct.
The simplest solution is to set everything out in one document, including description of the work, schedules, prices and terms, and get your cusomter to sign and date it and pass it back to you.
Sorry if that sounds a bit OTT, most of this stuff never comes up but it pays to be thorough! |
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tahir
Joined: 28 Oct 2004
Posts: 38236
Location: Essex
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| Posted: Thu Nov 19, 09 2:38 pm Post subject: |
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| Penny wrote: |
| We always take payment up front, unless very well known. |
Which reminds me, we need an "Employee of the Year" hoody for a young girl that's been helping on t'farm. |
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Penny
Downsizer Moderator
Joined: 18 Sep 2005
Posts: 17624
Location: Planet, not on the....
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| Posted: Thu Nov 19, 09 2:42 pm Post subject: |
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| tahir wrote: |
| Penny wrote: |
| We always take payment up front, unless very well known. |
Which reminds me, we need an "Employee of the Year" hoody for a young girl that's been helping on t'farm. |
Only if you pay up front  |
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sean
Downsizer Moderator
Joined: 28 Oct 2004
Posts: 28904
Location: North Devon
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| Posted: Thu Nov 19, 09 2:42 pm Post subject: |
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| tahir wrote: |
| Penny wrote: |
| We always take payment up front, unless very well known. |
Which reminds me, we need an "Employee of the Year" hoody for a young girl that's been helping on t'farm. |
You'd better pay up front then. |
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sean
Downsizer Moderator
Joined: 28 Oct 2004
Posts: 28904
Location: North Devon
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| Posted: Thu Nov 19, 09 2:42 pm Post subject: |
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Snap. |
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tahir
Joined: 28 Oct 2004
Posts: 38236
Location: Essex
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| Posted: Thu Nov 19, 09 2:45 pm Post subject: |
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I prefer Old Maid |
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sean
Downsizer Moderator
Joined: 28 Oct 2004
Posts: 28904
Location: North Devon
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| Posted: Thu Nov 19, 09 2:46 pm Post subject: |
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I'll tell your missus you called her that. |
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tahir
Joined: 28 Oct 2004
Posts: 38236
Location: Essex
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| Posted: Thu Nov 19, 09 2:49 pm Post subject: |
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| sean wrote: |
| I'll tell your missus you called her that. |
You think I'm scared? |
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sean
Downsizer Moderator
Joined: 28 Oct 2004
Posts: 28904
Location: North Devon
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| Posted: Thu Nov 19, 09 2:49 pm Post subject: |
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Yep. |
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tahir
Joined: 28 Oct 2004
Posts: 38236
Location: Essex
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| Posted: Thu Nov 19, 09 2:52 pm Post subject: |
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Hmm, you know me too well |
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vegplot
Joined: 19 Apr 2007
Posts: 11115
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| Posted: Thu Nov 19, 09 6:33 pm Post subject: |
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| tahir wrote: |
| sean wrote: |
| I'll tell your missus you called her that. |
You think I'm scared? |
I wouldn't cross her. |
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