Customers paying late

[plumber_UK]

I just got a payleven card machine and also I don't leave until I'm paid. It can get pretty awkward hanging about but if you stand your ground and tell them you require payment they usually fetch it from somewhere. I've even waited in the van while they head to the bank/cash machine. It's not nice but it's the only way sometimes.

Ha
Your right, stood there waiting for them to find the cash is so awkward, maybe i give in too easily.

I think things need to change in the New year

 

[Ray Stafford]

If you have a reasonable amount of work, can I suggest asking for a 10% (or even 15%) booking fee on the acceptance of a quote, then 40% (or materials value) when materials are on site, leaving just the balance for completion?

Obviously it means that you already have half the money, but more importantly it helps identify those customers who are likely to be poor payers (or cancel at the last minute).

If someone is not happy paying 10% up front, look them straight in the eye and ask why you should trust them for 100% if they won't trust you for 10%.

 

[Ray Stafford]

Another possibility is to give them the invoice on the second to last day of the job, reminding them that full payment will be due tomorrow. It might also be worth investing in those service interval programmers, and set it for +7 days before it shuts the heating off. When paid, plug an ordinary unit into the backplate.

 

[Masood]

Yes I think that's my only choice.

Which one did you use?

I had a Streamline / Cardsave one until recently. £25/month plus a small percentage. I've just got rid of that and gone for a Worldpay Zinc one. No monthly fee but 2.75% on all transactions. I pass on part of the transaction fee and swallow part of it as the price of convenience.

 

[Ray Stafford]

I pass on part of the transaction fee and swallow part of it as the price of convenience.

Which is what all businesses do.

Chasing overdue invoices isn't free. If you have to do it yourself, then you should consider that it costs whatever your hourly rate is.

On a job worth £2000, 2.75% is £55. If it saves you one hour of time chasing payment, you are probably breaking even. If it saves you 2 hrs, you should be ahead of the game. If it saves you going to court, or (worse still) taking a bad debt, then you could pay for a whole years worth of charges in one transaction.

 

[lame plumber]

Another possibility is to give them the invoice on the second to last day of the job, reminding them that full payment will be due tomorrow. It might also be worth investing in those service interval programmers, and set it for +7 days before it shuts the heating off. When paid, plug an ordinary unit into the backplate.

Ray's new top seller for 2016, brilliant lateral thinking. Me I get all materials plus 20% paid before they are delivered or when delivered, then you are just looking at labour. If they quibble you can always walk away, I have twice now and been proved right on one of them as the lad who followed me in, never got paid!!

 

[newcastle phill]

Also have the worldpay zinc
24hr helpline based in gateshead. England.

Works fine. Good battery life and can also take 'cardholder not present ' payments via a web portal to your account.

 

[JCSPLUMBING]

It's 2.75%, I just accept it. I don't pass the charge on