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BUSINESS GUIDE NO.2 PAYMENT TERMS
Your business could come under real financial pressure if payment fails to arrive for goods or services you have provided. If you think you are being paid on one date but your customer has a different date in mind, you could be in trouble. The importance of formally agreeing payment terms in advance of supplying goods or services is vital.
Green Door Debt Recovery Solicitors recommend the following steps;
1. Discuss and agree payment terms with your customers before you accept an order.
2. Confirm the agreed payment terms and deadlines in writing prior to supplying goods or services.
3. Consider having standard payment terms in place and a strict policy that these cannot be changed in any circumstances.
4. Ensure that the payment due date is clearly shown on all invoices.
5. Consider preparing a set of ‘Standard Terms and Conditions of Business’ which you can send to your customers prior to supplying goods or services. These ‘Standard Terms and Conditions of Business’ can include such items as standard payment terms, the charging of interest on late payment of any invoices and the recovery of all legal costs incurred if debt recovery action is required. Green Door are able to assist in the preparation of such ‘Standard Terms and Conditions of Business’. Please contact either Philip Boulton or Angela Shaw at Green Door on 0161 836 9970 to discuss this service.
6 Refer unpaid accounts to Green Door Solicitors sooner rather than later. We would strongly advise referring to us any invoices that remain unpaid 30 days after the due date. If you fail to chase your invoices promptly, you may find that your customer has gone into administration or liquidation, and that the prospects of recovering money are significantly reduced.
“Step in and see how, when it comes to debt recovery, we do things differently.”
I am a clinical psychologist and medical expert witness. I have been in private practice for 20 years and although I have strict terms of business, on occasion I experience great difficulty receiving payment from referring agents. As a sole practitioner this requires me to spend a great deal of time chasing payment and obviously has an adverse effect on my cash flow. Recently a firm of personal injury lawyers refused to pay my fees as their client absconded, despite the fact that the firm had agreed in writing that they would be responsible for my fees and not their client. Green Door were extremely helpful and managed to extract my fees from the lawyers within 2 weeks. They were professional, supportive and kept me informed at all times. It made a huge difference having someone on my side and I have since learnt that many medical experts faced with this situation, admit defeat and waive their fee as they can’t face the battle alone. I highly recommend this service.
We have been using Green Door debt recovery solicitors for the last 2 years to help with our debt recovery and we find them to be a very organised and professional company. Angela and the team are always happy to help, they have a good success rate and the No Win No Fee policy is great.
In mid 2010 I sold my small café business to Mr A and Mr B. We agreed to take payment in instalments over a period of time. At first, the instalments were received on time but at the end of February 2012 an instalment was missed. The contract stipulated that any monies outstanding after 10 working days rendered the entire balance, in this case just over £23,000, was due immediately. I made contact with Angela Shaw on 21st March 2012 and she explained very simply the debt collection process. Feeling confident that Angela understood the situation, and that Green Door were going to fight tooth and nail for me, I decided to ask them to act on my behalf. Although both Mr A and Mr B were legally in debt to me, morally it was very much Mr A that owed the money. I would of course have taken the money from Mr B but I really wanted it to come from Mr A, as the debt was morally his. During the process I was kept informed of progress until I got “the call” on 20th April 2012. The entire sum – £23,160 recovered from the right one… Mr A, in just under 1 month!
What a result!
I have been really pleased with your service. You have managed to recover debt that I thought wasn’t possible, your charges were fair and explained upfront and you did exactly as you said by keeping touch and letting me know if there was a chance to recover the debt or whether it was a waste of time. It has also made me review our own credit control procedures, hopefully we won’t have any further problems but if we do I’ll definitely be in touch.