Taxi Driver Online

How much leeway do you give high spending customers?

Do you bend a little bit on late payment or do you put them on a stop pretty quickly and risk losing that big, corporate account?

What credit control procedures do you have in place?

Common sense is a good approach.

Its an established fact that some will allow their bill to creep up, pay on time when a new account and then delay payments as you begin to need the account.

Fraser Eagle springs to mind.

Advice is.......you have payment terms, you should enforce them, they were designed to protect you.

CC

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

One of the best credit control procedures on really big accounts is to offer a discount of between 1-2% on payment within 10 days of invoice, otherwise they pay the full amount within 30 days.

And in these times, you go collecting the cheque from them on the 31st day.

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Kind regards,

Brummie Cabbie.

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One guy I know doesn't give anyone leeway when it comes to paying bills. If payments aren't on time he charges them above bank base rate everyday they are late.

Sounds good to me. It encourages early payment for those that are careful with thier money



This seems only fair as well.

A mixture of the two would be perfect. A discount for early payment, standard payment if on time and interest charged if late

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

I suspect most firms give too much leeway to their bigger customers.

But in a recession have they any other option?

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IDFIMH

I believe that 4% above Barclays base rate it seen as the standard for most businesses.

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Grandad,

But does that mean that those charging interest on overdue bills are then deemed to be money lender & as such need the appropriate licence fron the FSA?

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Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

If he has to pay the drivers out weekly on contracts done for the company I'd say yes he has a right to charge above the basr rate of his bank.

If we wanted anything from them on the chuckie and at 2% discount they'd tell us to do one wouldn't they??

I don't think so.
By offering to let the customer pay monthly you are already offering credit but I don't think you need a license for that.

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Grandad,

A discount for prompt payment works best, BUT, it has to be at least 5% to be worth anybodies time. Otherwise they just query a bill under any pretext and delay payment for a month.

I give what i recieve


FCK ALL, tescos dont let me walk out without paying, BT and Bgas take what i owe by DDM