Invoices

[Hicks]

I am new to contracting so wanted to gain some views on the above.

I am up to date in presenting my invoices to my client (the EB) but they seem to be settling the invoice one week in arrears.

To be honest, I am not comfortable with this but, as it is early in our 'relationship, am not sure whether to raise it as an issue.

Would welcome any thoughts or feedback on others' scenarios.

TIA.

[~Craig~]

what does your contract say?

To be honest one week is nothing. Many agencies wait 30 days before payment, or if you go direct some clients are 90 days.

[miffy]

what does your contract say?

To be honest one week is nothing. Many agencies wait 30 days before payment, or if you go direct some clients are 90 days.

What he said.

When it goes over 30 days then you need to start worrying.

Obviously becomes less and less of an issue once you've bagged a load of money and things aren't so tight for you.

[moorfield]

I am new to contracting so wanted to gain some views on the above.

I am up to date in presenting my invoices to my client (the EB) but they seem to be settling the invoice one week in arrears.

To be honest, I am not comfortable with this but, as it is early in our 'relationship, am not sure whether to raise it as an issue.

Would welcome any thoughts or feedback on others' scenarios.

TIA.

Check your contract - but one week is pretty good. Shouldn't be much of a problem for you once your cashflow gets going. Tip - make sure you have "Due Date" stated on your invoices in case you do need to chase up / dispute.

[Sockpuppet]

I am new to contracting so wanted to gain some views on the above.

I am up to date in presenting my invoices to my client (the EB) but they seem to be settling the invoice one week in arrears.

To be honest, I am not comfortable with this but, as it is early in our 'relationship, am not sure whether to raise it as an issue.

Would welcome any thoughts or feedback on others' scenarios.

TIA.

Wow.

Are you saying you get paid 7 days after invoicing? Geez!

I get paid 60 days after invoicing!

You want to work as a business and get the perks (dividends) start acting like one.

[Hicks]

Thank you for your feedback and you are right, I think I am concerned because I have just started out and there is not a lot of cash flow at the moment.

Also, a very good tip regarding the due date being included on all future invoices.

What would be a reasonable amount of time? 7 days?

Also, what would be the best wording to use?

[Sockpuppet]

I still don't see the problem.

Are you expecting payment the same day as invoicing? Are you expecting the agency to pay £40 for a CHAPS transfer each week? A Bacs transfer takes 3 working days so if you are getting paid on the 7th day then they are authing it after 2.

A reasonable amount of time is what has been agreed. Is 60 days reasonable? Yes, becuase that is what we agreed.

If your getting paid after 7 days then be thankful. Your not going to get paid any faster.

Cash flow is your problem not the clients. You really should be able to survive for 3 months at any time without any money. I've had to take 2 clients to court to get paid. It was fixed price work not this quasi-employment most contractors do. They decided that as it was low value they thought I wouldn't bother chasing payment.

Virtually guaranteed payment after seven days is a luxury.

[TheFaQQer]

Thank you for your feedback and you are right, I think I am concerned because I have just started out and there is not a lot of cash flow at the moment.

Also, a very good tip regarding the due date being included on all future invoices.

What would be a reasonable amount of time? 7 days?

Also, what would be the best wording to use?

A reasonable amount of time is whatever you agreed in the contract - if that is 7 days then fantastic, lucky you. If that is 90 days, then unfortunate but still reasonable.

If you feel that you need to use wording, then something like "Payment Terms: 7 days from receipt of invoice" should suffice.

If it's a real problem, then you could offer a discount for early payment - but to be honest, it's never going to happen if they are already paying in 7 days. It'll take 3 days to clear payment, so unless you're expecting cash, what more can they do??

[miffy]

What would be a reasonable amount of time? 7 days?

Also, what would be the best wording to use?

I always give them 30 days (no reason why you shouldn't as you're a business after all remember). I think that should be the minimum. Again, depends on your contract, ensure you're up to speed with what's contained within it. Most agencies will pay faster than your terms anyway.

As for wording, theres plenty of invoice examples to be found dotted around the net, mine reads...

Terms:
Payment to be made within 30 days receipt of this invoice, as per the contract governing this agreement.
Please pay either by cheque (to the above address) or via BACS to the following bank account, quoting the invoice number as a reference.

As for 7 days, christ no. You're still thinking way to much like a permie...

[TheFaQQer]

As for 7 days, christ no. You're still thinking way to much like a permie...

cash-in-hand builder / temp