Thread: Self Employed-Any Tricks for getting paid on time

The Local Government Authority I once worked for had a clause in their Purchase Orders stating no payment for 90 days.
The only times this was ignored if there was financial gain in paying on time.
Offer a ten percent discount if paid by months end.

There's a bloke around town called Mick G...... who allegedly is very good at getting money out of people.

Fairly easy to track down, cough up your payment and you will have your money.

Easy.

Originally Posted by Feral

There's a bloke around town called Mick G who allegedly is very good at getting money out of people.

Fairly easy to track down, cough up your payment and you will have your money.

Easy.

tempted to pay myself to do it!!

Add 20% to your quotes and offer discount if paid within 7 days. In my earthmoving equipment days we used to do this to some of our crappy clients who always wanted to argue about the account, the work done, etc.

Otherwise, one of the Brisbane motor cycle "clubs" have a debt collection service. They keep 25% of what is collected. They send a couple of negotiators around to visit the slow payer. Negotiators are usually 7' tall and 150kgs, in colours, chains etc. They offer a form of health insurance.

Thanks for that, good to have a laugh at the thought of doing that, the thought of the mole of a woman responsible for processing my invoices being confronted by a couple of 150kg healthcare brokers would be worth watching
Things are a little stressfull this week, limited earning potential with the disco off the road, wedding coming up in a few weeks and people not paying!!!!!!! Oh and did i mention parents coming to stay for 3 weeks...

We run a small business that services the rural sector in fertiliser ect. We have the same problem with corporates, solicitors and accountants who own farms in the Kyneton / outer Melb. area. They are the worst payers. I have a 3 page credit application form that I make them sign which clearly states the trading terms and the interest component for late payment. You also have to be timely in the sending of statements & overdues. We send statements for two months Then we send a letter that requests payment and ask if there is any reason the account has not been paid. If no reply we send a letter of demand in a registered letter that explains that inspite of previous letters and no response was recieved, we now ask for payment in 7 days or the matter will be put in to the hands of a debt collector, that means the the person it is addressed to must sign for it and you then know he has recieved it. Give them 7 days (no more) and put in in the hands of someone who can take the action further. It costs us an initial $6.50 for them to then send a letter of demand and then leave it their hands.
Remember a job is not a job until you have been paid.
I have a template here for you to change if you need.
This does not always work as we have one going through bankrupsy? at the moment.

Write up a set of dunning letters, or get a lawyer to do it for you.

Start with the seven day terms at the bottom of the first invoice. Followed by the, 'it's been seven days and we haven't received payment,' etc.

A firmly worded letter to the accounts department might get the money moving and keep the relationship with the face to face client jolly.

Or send in the wife and kids to wait for the cheque, or somebody else's wife and kids if you don't have one.

The discount for quick payment, as above, is a great one since it doesn't get you arguing with the client.

Cheers
Simon

Some good advice thanks, i've been running my own business since the start of the year and its a steep learning curve, very rewarding in some aspects and bloody hard work in others