cabbyman wrote:
How much leeway do you give high spending customers?
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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| Author: | cabbyman [ Sat Oct 02, 2010 12:09 am ] |
| Post subject: | Credit control. |
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? |
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| Author: | captain cab [ Sat Oct 02, 2010 12:13 am ] |
| Post subject: | Re: Credit control. |
cabbyman wrote: 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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| Author: | Brummie Cabbie [ Sat Oct 02, 2010 12:13 am ] |
| Post subject: | Re: Credit control. |
cabbyman wrote: 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? 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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| Author: | Nigel [ Sat Oct 02, 2010 6:28 am ] |
| Post subject: | |
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. |
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| Author: | toots [ Sat Oct 02, 2010 7:22 am ] |
| Post subject: | |
Quote: 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. Sounds good to me. It encourages early payment for those that are careful with thier money Quote: 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.
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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| Author: | Sussex [ Sat Oct 02, 2010 7:45 am ] |
| Post subject: | Re: Credit control. |
cabbyman wrote: How much leeway do you give high spending customers?
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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| Author: | grandad [ Sat Oct 02, 2010 8:17 am ] |
| Post subject: | |
Nigel wrote: 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.
I believe that 4% above Barclays base rate it seen as the standard for most businesses. |
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| Author: | Brummie Cabbie [ Sat Oct 02, 2010 9:11 am ] |
| Post subject: | |
grandad wrote: Nigel wrote: 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. I believe that 4% above Barclays base rate it seen as the standard for most businesses. 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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| Author: | Nigel [ Sat Oct 02, 2010 11:21 am ] |
| Post subject: | |
Brummie Cabbie wrote: grandad wrote: Nigel wrote: 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. I believe that 4% above Barclays base rate it seen as the standard for most businesses. 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? 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?? |
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| Author: | grandad [ Sat Oct 02, 2010 12:47 pm ] |
| Post subject: | |
Brummie Cabbie wrote: grandad wrote: Nigel wrote: 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. I believe that 4% above Barclays base rate it seen as the standard for most businesses. 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? 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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| Author: | tom2907 [ Sat Oct 02, 2010 6:42 pm ] |
| Post subject: | |
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. |
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| Author: | wannabeeahack [ Sat Oct 02, 2010 7:00 pm ] |
| Post subject: | |
I give what i recieve FCK ALL, tescos dont let me walk out without paying, BT and Bgas take what i owe by DDM |
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