# invoiced company - now 30 day wait?



## DavyJones (4 Apr 2008)

I am involved in a small business, recently we completed a contract for a bigger company.  Their contract for the work stated that payment would be received 5 working days from receipt of our invoice.  Since completing the work they now say they are oblidged to pay 30 days from invoice.

However about them renaging on their own 5 day rule, I just wanted to check is this 30day rule a statatory obligation? 

Many thanks.


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## Caveat (4 Apr 2008)

Statutory? I don't think so - some of our customers are payment in advance, some payment by return and some 60 days.  30 days is certainly the accepted norm - but AFAIK, you the service/goods provider, dictate the payment terms.

But unless you think you won't get paid, do you want to upset a (I assume) good customer?


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## DavyJones (4 Apr 2008)

Thanks for the response Caveat, We completed works early march and contractor has already come up with two reasons why payment has been delayed, we had been given two dates already for payment which have come and gone. It doesn't sit right with me. This is our first dealing with this company and since we are geographically in different parts of country (they had a contract in my part of world) I assume it will be a one off.
A large amount of money is outstanding and staff and suppliers still need to be paid. I feel like I could be taken for a ride here. Fingers crossed that doesn't happen!


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## zag (4 Apr 2008)

Sounds like they are out t ospin as much credit as possible out of you

I guess a lot of it depends on the size of the company - some large and huge companies have very rigid terms for payment which are set centrally, so if Johnnie in <remote county/country> tells a local supplier he will pay in 5 days it makes no difference to the central accounts function who only ever pay on 30 days.

Some small and not so small companies may simply say anything that will get the contractor to do the work . . . if the contractor says he will require payment in 5 days and this is what is needed (to be said) to get him on site then they will say it, regardless of whether they ever plan to pay in 5, 10 30, 60 or 90 days.

You will need to gauge yourself from the type of company whether you actually can expect payment in 30 days.

You should definitely mail/write to everyone you can think of (accounts, your contact, etc . . ) in the company telling them that the agreed date has already been missed, but you expect payment on 30 days - and give them a specific date.  Then ring them the day after that and ask for the cheque number.  If they have no cheque number then they haven't paid you, 30 days have expired and you have a struggle on your hands.

z


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## Complainer (6 Apr 2008)

Do you have any leverage with them? Are you supplying ongoing support? Did you supply goods or services?


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## dicey_reilly (9 Apr 2008)

DavyJones said:


> I am involved in a small business, recently we completed a contract for a bigger company. Their contract for the work stated that payment would be received 5 working days from receipt of our invoice. Since completing the work they now say they are oblidged to pay 30 days from invoice.
> 
> However about them renaging on their own 5 day rule, I just wanted to check is this 30day rule a statatory obligation?
> 
> Many thanks.


 

Hi Davy

A few points:

1. Credit is a privilege, not a right. If they have signed a contract for 5 days credit terms - it is wrong of them to change the terms.

2. As a tip for future contracts - try to avoid the phrase "from receipt of invoice". It is better to use "5/15/30 days from date of invoice". Unless you are sending invoices by registered post/courier - you cannot prove receipt of invoice. The most common delaying tactic is to wait until chased and then ask for a copy invoice and start the clock again from 'receipt of invoice'.
Always invoice as promptly as possible.

3. In this case, as it is unlikely that you will work with them again, I would write to the Financial Director of the company pointing out that their payment is in default and that you will refer the account for legal action with instructions to recover all monies due and costs - which might cost them a lot more in the long run.

Good luck with it

Cheers
Dicey


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## DavyJones (24 Apr 2008)

Thanks for all the advice, We finally got payment 40 odd days later. important lessons have been learnt and more to learn no doubt. Thanks again.


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## ButtermilkJa (24 Apr 2008)

40 days... How did you get the money off them so quick   All my clients take an average of 90 days to pay up. It's so bloody frustrating and time consuming. Yet I can't afford to tell them to get lost as I need their business. Catch 22 I'm afraid


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