Prompt Payment Discounts

[Riggy]

Does anyone offer prompt payment discounts?

How much and for how long?

Do they work?

(Please don't start a poll! )

 

[Andy™]

i dont, although there is one company that i done a job for a few month ago who took 2 month to pay. if they ever phone, for the inconvenience i will be adding 20% to the bill, and stick a note on invoice saying 10% discount for payment with 14 days.

and the 'extra' is compensation for last time.

 

[Evans Electric]

I don't, they should pay as agreed terms , mine are either , on completion , 30 days, 60days ( trusted customers)

 

[Apache]

We do - 2.5% if paid within 30 days. Not much and not sure it makes a scrap of difference.

 

[Riggy]

Thanks fellas, looks like not the way to go then.

 

[Badger]

i dont mainly becuase i give good prices anyway

 

[Riggy]

i dont mainly becuase i give good prices anyway

So do I, obviously I intended to add a bit on to cover the "discount"!

 

[Apache]

So do I, obviously I intended to add a bit on to cover the "discount"!

Just remember your percentages. If bill is

 

[Riggy]

Just remember your percentages. If bill is

 

[paul b b]

i would find this more of a hassle, you write an invoice for 1 amount they pay another arrrrrr.

the few job i have done i give them an invoice when i give them the cert and ask for a chq!

 

[Apache]

Obviously my posts don't portray me as very sharp! :coat

Blushing no offence intended

 

[Riggy]

Blushing no offence intended

 

[elvis]

I have some commercial customers who generally take about 6 weeks to pay... but they get charged at a higher rate so I just get on with it...

Nae use when you come back from yer holidays though!!!

 

[RussellR]

We don't with our company, but a company I used to work for did, the only trouble I found was some customers used to take the discount even though they didn't pay on time, and then you have a job to recover it.

 

[exbdc]

Over the years I have found two problems with settlement discount.

1. Where do you draw the line if a customer pays a few days late but the cheque was posted before the cut off date? I have had numerous arguments over the years with this & if you leave the settlement amount outstanding it never gets paid & you end up issuing a debit note to cancel it.

2. It can play hell with VAT returns especially with the above scenarios.

Obvious solution is not to offer it & put customers on stop when their accounts are overdue.

 

[kme]

We have done this on a few occasions; esp. if it`s a new customer & the 6th sense kicks off a bit.......

Normally 5% if paid within 7 days - mind you, that 5% goes ON the bill before I issue it - If they pay promptly, I get the amount I want. If they don`t, they owe more

(plus, after 28 days you can add interest at the statutory rate of 8% ; plus a late payment fee of

 

[Apache]

(plus, after 28 days you can add interest at the statutory rate of 8% ; plus a late payment fee of

 

[Andy™]

What is the legality of this? We were told by an accountant that we can't add interest as a percentage as we are not a licensed credit broker. We have a fixed price to re-issue an invoice.

late payments of debt act or something similar

see here for more info

 

[Tooold]

With the post the way it is, cant believe they are striking, I am trying to get more customers to pay by bacs. I am having a lot of sucesss and it really helps the cash flow. I may offer a discount if paying by bacs in the future as the extra charge for the o'draft will be covered by quick payment, I hope!

 

[Zeespark]

Too old, not to mire this thread in the postie strike, but its the government and RM management in the wrong, not the posties (I speak from experience of working at RM this century).

AndyGuiness Drink