Taxi Driver Online

We have a few companies who we have accounts with on our invoices it says our payment terms are "30 day terms"
But one insists they only pay out on 90 days. I was under the impression they have to agree to our terms as we are the supplier. Any thoughts would be helpful

_________________
Life? Don't talk to me about life!
http://www.youtube.com/watch?v=wjm2eslm6hI

Depends how much you value the account? I would inform them of the terms of the contract and that you cannot make exceptions and if they are not happy with these arrangements then you will have no other option but to terminate the contract.

On the other hand if you value the account then you are going to have to come to a compromise.

Regards

JD

_________________
Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.

Thanks JD seems like I'll be on the phone all day again tomorrow then "Press 1 if you want a robot" "Press 2 if you want to wait in a queue for a day" etc

_________________
Life? Don't talk to me about life!
http://www.youtube.com/watch?v=wjm2eslm6hI

It all comes down to the terms of the contract, not which party is the supplier.

Did they agree with your terms before the contract commenced?

However, as JD says in practice it all comes down to economic power and how much credit you wish to give in order that you can keep a particular contract - if you want to press the issue then you may get them to pay up, but that might lead to the work drying up.

Didn't the Government introduce provisions to help small businesses against big businesses in this regard?

However, the same pitfall remains even if you could use such legislation.

_________________
Taxi Driver Online
www.taxi-driver.co.uk

Yeah thats what I thought I'll get on to them in the morning and find out what was agreed by our office. Deep Joy!
Thanks for the help

_________________
Life? Don't talk to me about life!
http://www.youtube.com/watch?v=wjm2eslm6hI

If you can try and up your rates on this account, then at least you will have some sort of 'last laugh'.

_________________
IDFIMH

I would not entertain a 90 day account under any circumstances. I used to work in engineering and we had a couple of customers that had 90 day accounts. All would be well for a while but then you would get a big increase in business from them but 4 months down the line, 90 days from invoice plus the month that the invoice was for, you don't get paid. You spend the next month chasing the payment and now it is nearly 5 months so you put them on stop. You now have outstanding balances from 5 months of work and the company goes bust owing you all the money. You can't get it because there are no assets. The company starts up again with a slightly different name but you have been well and truly stuffed.

_________________
Grandad,

The only contract you can be positive of being paid out on if it runs over is with the council....... alarm bells ring when people cannot pay at the end of the month..... you're better off without it

_________________
Justice for the 96. It has only taken 27 years...........repeat the same lies for 27 years and the truth sounds strange to people!

Wise words, but many big businesses have been notoriously slow payers, particularly in relation to small businesses, but getting paid isn't wnecessarily an issue - it's how long you have to wait for it.

Many big businesses basically use their commercial muscle to dictate terms to smaller businesses, because they know that to a large extent the smaller entity has no choice in the matter.

After all, if a big business can delay paying thousands of small suppliers while demanding promt payment from its customers then it can help their liquidity enormously and they know they can get away with it.

For the small business it's just like any other commercial transaction - are the payment terms worth it to keep the business? It's not black and white, it's a question of weighing up the various pros and cons.

_________________
Taxi Driver Online
www.taxi-driver.co.uk

I agree. I have weighed up the pros and cons and I wouldn't take on a job with 90 days terms.
Although having said that there is always the option of factoring. For those that don't know what this is, it is a sort of insurance/loan against your invoice. If you have an invoice that is on say 90 day terms you can, for a small percentage of the total, get your money straight away and then the company pays the invoice to the factoring company.

_________________
Grandad,

It breaks my heart waiting a week.

_________________
IDFIMH

Our bank is offering to factor the invoices for 10% I don't suppose we would get it much cheaper anywhere else!

Still on the plus side we took 2 people to the Small Claims Court and got a result today!

_________________
Life? Don't talk to me about life!
http://www.youtube.com/watch?v=wjm2eslm6hI

Jeez, my business must be pretty unsophisticated - my current dilemma is whether to use the Coinsorter in Tesco for my 1p, 2p and 5p coins, at an exorbitant 6% charge

_________________
Taxi Driver Online
www.taxi-driver.co.uk

Around here, most companies rely on contracts with the big oil companies (Shell, BP etc). Them going bust isn't really an issue but considering that they use dozens (sometimes hundreds) of cabs a day, their monthly bills are tens or hundreds of thousands of pounds. Most of them pay 90 day. thats a lot of dough to have outstanding. Drivers won't wait 4 or 5 months to get paid, so the offices have to carry most of the burden. Many smaller outfits just don't do them as they can't afford it.

_________________

http://wingsoverscotland.com/ http://www.newsnetscotland.com/

the one at asda is 7.9% so your getting a good deal there

_________________

http://wingsoverscotland.com/ http://www.newsnetscotland.com/