Unpaid Fee's

Unpaid Fee's

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How often do you send reminders to clients about overdue fee invoices?

we currently give 14 days payment terms and then reminders every 20 days overdue

Never really had a problem but have several clients overdue at the moment and I have to admit I'm getting annoyed with by some weak excuses

what do others do? I don't want to bombard clients with reminders and pee them off

Replies (11)

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By ShirleyM
02nd Mar 2015 16:43

Are you joking?

"I don't want to bombard clients with reminders and pee them off"

You don't think you should be pee'd off then? I know from my earlier days in accounts dept for larger businesses ... the ones that make the most noise get paid first.

... and don't carry on providing services to clients who haven't paid for what they have already received (lol... that sounds a bit like someones saying grace before they devour whatever is in front of them). ;)

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By Tim Vane
02nd Mar 2015 16:50

I agree with Shirley.

Get angry and make sure they know that you are angry. You don't want to give the impression that you are an easy touch or they'll fob you off forever. Niceness should never be a consideration when asking for payment for services rendered. Politeness yes, but firm and insistent.

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By mrme89
02nd Mar 2015 16:50

If they don't want to be reminded that their account is overdue, the solution is simple ... they settle the account.

 

If their excuses are weak, you need to be forceful with your payment terms.

 

Can you get the constant late payers on standing orders?

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James Reeves
By James Reeves
02nd Mar 2015 16:51

Fees not fee's

Just saying.

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By andy.partridge
02nd Mar 2015 16:52

If you are perceived as weak . . .

 . . how do you think they might rate you in an enquiry? Would they want you to represent them and protect them from HMRC?

There is a positive in getting tough, but the trick is how to do it without impacting on the relationship.

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By tom123
02nd Mar 2015 19:24

Credit control is a weekly activity (minimum)

Now, I am coming from the industrial rather than practice side but - in my view, credit control should be a weekly activity. This is what I do:

Day 1 of the month - statements

Week 1 - advise customers over terms (in my case 60 days) on stop.

Week 2 - debtor letters (of which there are four automatic templates in my software)

Week 3 - advanced warning to customers going on stop this month.

Week 4 - Further stop notices / Seven day letters.

 

In between, phone the most recalcitrant. Compared to a few years ago I find email gets a better response than phone - does it seem more 'formal' perhaps? Less scope for being fobbed off.

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By Howard Marks
03rd Mar 2015 07:43

Advanced payments

My clients pay in advance throughout the year.

 

If they haven't paid their standing order by the end of the month, they get a reminder on the 1st.

 

After 3 consecutive months I reserve the right to bin them off with no refund of in-year payments.

 

If account isn't fully in advance come year-end they don't get their CT/SA's filed.

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By Jekyll and Hyde
03rd Mar 2015 09:21

monthly statement....

Followed up by:

First month - gently nice telephone reminder

Second month - telephone reminder and ask if there is a payment problem. Most have settled by this time. If there is a genuine payment issue then I agree a payment plan. Usually works for the remainder if debtors. I also discuss a payment plan in advance for next year.

If any still outstanding (not many) after 3rd month then a strict letter. I tend to ask for payment up front the following year.

Oh and I invoice when I draft the accounts/tax returns so I will also be seeing the client to finalise and sign these at the later date. I find a lot of people pay around this finalise meeting.

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By pawncob
03rd Mar 2015 11:42

Charge It.

Always  add the Late Payments notification to invoices sent to late payers. The thought of additional charges and high interest rates does jolly them up.

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By mbee1
03rd Mar 2015 12:35

Our terms are 30 days and we review our debtors usually on the last Wednesday of each month.  Any one over 30 days is sent a first reminder by email if that's the usual way we correspond with them.  Any unpaid after 60 days is given a telephone call and sent another reminder by email and post.  After 90 days they're sent a recorded letter threatening court action but these are very few and far between as they've usually paid by then. 

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By petersaxton
03rd Mar 2015 13:54

My attitude

I wait a month - most pay a lot faster than that.

After a month I will send an email every couple of days.

After a week I will phone them up.

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