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outstanding invoices
- Thread starter nashvillesigns
- Start date
BIG EASY DOES IT
New Member
Don't let them go without paying or getting a card on file... that's my tip. When people don't want to pay they don't pay. There is no way to get them to pay unless it is enough that you would want to take them to court over it. Or just keep everything cash only on pick up.
reQ
New Member
Unspoken rule, but pretty much most businesses follow it - 30 net to pay the invoice. But if its a person with 50-150-200 dollar sign/decal etc who i won't probably see anymore - should be paid right away. You need to understand when you have to get paid right away and where you can wait 30 days. Most bigger account won't pay you right away, its where this 30 day buffer time comes into play. After 30 days just call the customer and ask to speak to accounts payable, be nice and explain that the invoice is overdue and you need payment. Always works for us, having zero issues.
SameDay Signs
New Member
I am in the same boat and have recently decided to change my relaxed half down method to anything under $100 gets paid in full anything over that is atleast 1/2 down depending on job and nothing is taken without the rest of payment in full. The few exceptions are a couple colleges and factories we deal with. Be firm and if they don't like it let them rip someone else off
James Burke
Being a grandpa is more fun than working
In our haste, we've sometimes missed our standard protocol of filling out work orders for every job.
To prevent that from happening in the future, we've made a pad of sequentially numbered job tickets get stapled any piece of documentation (customer email, written customer instructions, etc...) we use to do a job. When we sit down to review our work orders (and then invoice), we are able to track each job even if a work order hadn't been completed.
If you have employees (or subcontractors who use your materials and supplies), you'll definitely need some way of accurately tracking jobs or else you leave yourself open to the risk of uncontrolled use, loss or pilferage.
JB
To prevent that from happening in the future, we've made a pad of sequentially numbered job tickets get stapled any piece of documentation (customer email, written customer instructions, etc...) we use to do a job. When we sit down to review our work orders (and then invoice), we are able to track each job even if a work order hadn't been completed.
If you have employees (or subcontractors who use your materials and supplies), you'll definitely need some way of accurately tracking jobs or else you leave yourself open to the risk of uncontrolled use, loss or pilferage.
JB
I also had a problem with a large A/R and having to chase money so I implemented payment in full before production begins. My larger corporate customers are still net 30 but everybody else is payment up front and it is working great.
This is also helping with people approving artwork and completing orders. Our art proof outs was large from people not finishing up jobs after we had worked up the proofs. Now since their orders are paid up they are approving them.
This is also helping with people approving artwork and completing orders. Our art proof outs was large from people not finishing up jobs after we had worked up the proofs. Now since their orders are paid up they are approving them.
The majority of the time, we are paid in full at the time signs are delivered. Every once in a while, we don't get payment for one reason or another. I've found that calling and emailing invoices is not nearly as effective as sending them an invoice in the mail. And bonus, our overdue invoices have a HUGE red stripe across the top indicating its past due. Its like the disconnection notice from the power company that you just don't ignore.
Last month I had 5 invoices outstanding, all for small amounts ($60-125), within a week of mailing those out, I got 4 checks in the mail. I was about to call the last one (again) and say "WTF Man?!? Pay your $60 bill already!!" but I'm glad I didn't because I received a check that day.
We are much more strict about collecting payment when the invoice is higher than $150.
Last month I had 5 invoices outstanding, all for small amounts ($60-125), within a week of mailing those out, I got 4 checks in the mail. I was about to call the last one (again) and say "WTF Man?!? Pay your $60 bill already!!" but I'm glad I didn't because I received a check that day.
We are much more strict about collecting payment when the invoice is higher than $150.
Mosh
New Member
Pay when they pick up. Simple. The exceptions are big corps that have to pay net 30-60 I have one (Cargill) that pays 90 days, yes three months.
On those I give them an invoice WHEN they order so the payment will at least be that much faster. Also ask them, a lot of companies will pay with a credit card if you press them hard enough.
Never had a customer steal a sign though...LOL
On those I give them an invoice WHEN they order so the payment will at least be that much faster. Also ask them, a lot of companies will pay with a credit card if you press them hard enough.
Never had a customer steal a sign though...LOL
I used to have problems with some customers wanting to take 60 days to pay a bill less than $50. I put a sign up in my shop, that read "Prompt payment , insures Good credit". Another read "Cash Makes No Enemies, Let's be Friends!" They got the drift. Now most of my work is paid before I get the job done. The scope of this customer's work takes me more time to do, but I receive payment before the job gets finished. Win, Win all the way around. They seem to be happy with the situation and I know that I am!
copythat
New Member
Fire them!
I implemented payment up front for any orders up to $100. Over $100 Proofs paid up front and 50% on order. Someone else posted same something similar to this. This is very important. At the very least, you get paid for your time. For those that steal. [never Pay for your services] FIRE THEM! Your not a bank...
Sign Up!
I implemented payment up front for any orders up to $100. Over $100 Proofs paid up front and 50% on order. Someone else posted same something similar to this. This is very important. At the very least, you get paid for your time. For those that steal. [never Pay for your services] FIRE THEM! Your not a bank...
Sign Up!
Solventinkjet
DIY Printer Fixing Guide
Charge a 5%, daily accrued, interest on past due accounts. If they are going to treat you like a bank you might as well make some money for the trouble.
brycesteiner
New Member
2 steps
Since it's already happened to you changing policies won't change the past, but it can change the future. Here is what I recommend.
1. Yes. Change your policies so you don't go through this again. Cash upfront or on completion of job. I may not be easy but you must do it. Don't give a way out such as, "Sure payment when you pick it up. Oh, you'll have the check in the morning. No problem." Don't give your work until morning then.
2. For existing Accounts receivables go after them now. Email, call, drop in. Don't use the excuse that you are busy. If it gets too far behind, it's more likely to lose a good customer who just lost an invoice or didn't receive it. I had this happen.
I know some of the above responses said mail worked much better than email. I don't find this to be the case. In the 12 months from October 2013 to September 2014 I counted about 180 invoices that people did not receive in the mail (or so they said). I'm sure some of them were valid because there were good regular payers who said this. There were others who are just consistently behind. Do you know how many I got back in the mail as just undeliverable? None. It doesn't surprise me at all. In that time period we also averaged $12,000-15000 per month in postage (We mail out a newspaper). Many of them didn't get delivered either because I had people I contacted to find out if they received them.
I'm not saying I'm a saint on this. I really need to do a better job myself. Most of my billing is different because our main revenue is printing and newspaper advertising. We will bill ahead when the ads come instead of at the end of the run cycle like we used to. This has helped alot. We also require certain ads paid for upfront, like our signs.
If you don't have time to call, have someone in your office do it and do it regularly.
Hope this helps.
Since it's already happened to you changing policies won't change the past, but it can change the future. Here is what I recommend.
1. Yes. Change your policies so you don't go through this again. Cash upfront or on completion of job. I may not be easy but you must do it. Don't give a way out such as, "Sure payment when you pick it up. Oh, you'll have the check in the morning. No problem." Don't give your work until morning then.
2. For existing Accounts receivables go after them now. Email, call, drop in. Don't use the excuse that you are busy. If it gets too far behind, it's more likely to lose a good customer who just lost an invoice or didn't receive it. I had this happen.
I know some of the above responses said mail worked much better than email. I don't find this to be the case. In the 12 months from October 2013 to September 2014 I counted about 180 invoices that people did not receive in the mail (or so they said). I'm sure some of them were valid because there were good regular payers who said this. There were others who are just consistently behind. Do you know how many I got back in the mail as just undeliverable? None. It doesn't surprise me at all. In that time period we also averaged $12,000-15000 per month in postage (We mail out a newspaper). Many of them didn't get delivered either because I had people I contacted to find out if they received them.
I'm not saying I'm a saint on this. I really need to do a better job myself. Most of my billing is different because our main revenue is printing and newspaper advertising. We will bill ahead when the ads come instead of at the end of the run cycle like we used to. This has helped alot. We also require certain ads paid for upfront, like our signs.
If you don't have time to call, have someone in your office do it and do it regularly.
Hope this helps.
reQ
New Member
You have to understand that big account would not deal with you if you will demand your payment right away. There is no way i will go chase Burger King/McDonalds/Police etc. accounts to pay us right away, because there is a chance that they will find another vendor who will agree to work with net 30/45/60. Average Joe - yes, pay right away, its what i said in previous post.
Gino
Premium Subscriber
Therein lies your problem. No one HAS to do anything, be it understand or play by their rules.
Would you define "big account" ?? Is it someone will known..... or someone who spends large amounts with you ??
Regardless for whom we perform work, they pay on our terms. Had one recently, we instructed them of our terms once again, they balked and I thought they left, but they just placed an order and said they would pay upon receiving the order.
If you, or any other shop here sets down terms, you either heed by them or break them. That's your call. If you're afraid of losing a customer because you won't finance a large company, that's on you for running scared. We deal with some hefty companies, and they all work within our terms.
Something to be said about presentation, not only how you present your own company, but how confident you conduct yourself..... not to be confused with cockiness. Put them in the know by telling them up front how you expect things to go. Any deviation will be dealt with accordingly. No need for you to be on the 'defense' just because you're a little guy or something.
If they come to you, its for a reason. Is that reason because you're good or because you give good credit terms ??
reQ
New Member
I see your point. In my experience sometimes it works, sometimes you see them go to different shop after and it kinda makes me sad a bit. I can't complain about not having enough work but its never enough lol