FAO Fire Risk Assessors

[lingmoor]

Could anyone give their experiences of companies that have been slow to make the payments for your services,  what is the time you give from invoice to payment and what action you would take if the invoice is not acknowledged. Thanks.

[kurnal]

I always state in contracts that the  terms are 30 days, but that is unheard of. I reckon 50% pay  between 60 and 90 days, many take 6 months and a few never pay. I use a no win no fee debt recovery agency if it goes over about 9 months.  I have had many bad experiences with the licensed trade and am now reluctant to work for pubs and clubs, and if I do its got to be payment up front. Wrote off £4k bad debt in 2006, £1200 in 2007 all licenced trade. And thats a lot of work for nowt.
I think since the demise of the licensing justices there has been a huge increase in rogues and  lowlife being given licences.

[lingmoor]

Thanks Kurnal

well that puts my 60 days I've been waiting in the shade.. its the first time it's happened to me and it's a multi chain business

It was a hell of a drive getting there as well!!


£5.200 written off!...Ouch

[Tom W]

30 day terms from when the report is recieved, we pretty much always get paid around then but we have a good accounts team

only written off one £1200 job in two years due to company going into administration

[John Dragon]

We are not risk assessors, but as alarm/extinguisher installers/maintainers we have a few bad pennies.
Try using Higgins solicitors, an online based debt recovery firm who send solicitors letters out for about 2 quid each.
If debt not then paid, they will pursue it (you have to stump up an upfront sum (about £65, which is then recovered from the debtor in the event of a successful outcome).
The letter before action usually does the trick.
www.thomashiggins.com

[kurnal]

What you may be working with Lingmoor is the common practice of many larger organisations to pay you within 30 days of their monthly accounting day usually the last day of the month. So get your invoice in on the 29th and it will be paid within 31 days. Get your account in on the 1st and you will wait 60 days. I find this fairly common with some of the bigger companies

[Davo]

Prof K

Good job your rates are reasonable then, eh, or you would have lost a lot more!
Most Local Gov do pay, but generally takes 60 days as M'learned colleague states.

davo

[Ashley Wood]

For the sort of money you are talking about I would be camped outside the directors house. Seriously though, did you find they were in breach of the RRO when you did the work? If they are I would warn them that you are duty bound to inform the fire authority and warn them that you will do this if you do not receive payment immediately. Alternatively, if they are a limited company give them 7 days notice in writing that you will seek a winding up notice on the business if they do not pay within the 7 days.

I am fortunate, I have only ever had one problem payer but he paid up the £1500 after I blocked off the entrance of his hotel drive with my car! He paid cash..

another solution is to factor your invoices. The only problem is you are giving away a large lump of profit in favour of cash flow.

good luck.

[Wiz]

The first rule of business is to never to give anybody credit facilities unless they have agreed to your terms and conditions of trading in writing and you have carried out a credit reference check.

If you are prepared to carry out work without doing the above, expect to be shafted on a regular basis. This world is full of rogues and crooks.

If your customer is not prepared to pay up front or to undergo credit reference checks and also agree to your terms and conditions of trading then don't work for them. You might as well sit at home and earn nothing, than to work hard and still earn nothing!

You can carry out a simple credit reference check yourself on a Company's financial stability by using information stored at Companies House for a very reasonable fee:

www.companieshouse.gov.uk

When your customer agress to your terms ask him for a written purchase order for your services on the terms, and if possible, the price agreed.

In the unlikely event you still don't get paid within the terms of your terms and conditions take legal action through the courts under the Late payment of Commercial Debts (interest) Act 1998. You can even do this on-line.

www.courtservice.gov.uk

When taking court action you are entitled to claim interest at 8% over base, a late payment compensation fee and repayment of court fees.

By the way, the late Payment of Commercial Debts (interest) Act 1998 also states that unless your terms and conditions ask for anything different then the recognised legal period for payment is 30 days from submission of invoice.

More information regarding how to get paid on time can be found at

www.payontime.co.uk

I have only ever not received payment when the debtor has gone into liquidation. This was mainly during the last recession. No customer of mine went into liquidation between 1998-2007. I have had one this year but I expect some more in the future - a new recession is on the way! Protect yourself now by having a robust 'debt recovery' system. The good times are over!

[kurnal]

No Ashley.
I'm not as brave as you. Some of these chaps are nasty pieces of work. You know when you work for them that their values and objectives are very differnet to yours and they couldn't give a hoot about public safety but you do your bit and hope that some good wears off. One of the big debts was on a place that we turned round after a prohibition notice had been served.
In some cases bankruptcy is the problem, and the licencd trade is really having a hard time at the moment. In other cases some of these people dont pay their taxes and when the Revenue or Customs and Excise catch up with them they have first claim. That was the case with the last one, he had a £90k surcharge on him for non payment of VAT, Yes I could get him wound up but I would have to pay the legal costs in full knowledge that at the bottom of the pecking order I won't get a penny.  And that was his final insult to me and many others to whom he remains in debt. I would much rather have the knowledge that the debt collection agency keep spoiling his day by reminding him that I am still around.

[kurnal]

Thanks Wiz
Will check all that out. Must admit to having been very naive and green behind the ears and still am. Always see the best in people and can easily get caught up in misplaced enthusiasm. All part of lifes rich tapestry.

[kurnal]

Prof K

Good job your rates are reasonable then, eh, or you would have lost a lot more!

davo

Nice one Davo. Like your style!    (I dont mean in terms of fashion)

[lingmoor]

Thanks for all the replies...it is a 'nip and tuck' clinic....maybe I should ask for some cosmetic surgery in exchange

[beltandbraces]

I never hand over a Fire Risk Assessment without payment!  This is made perfectly clear from the start.  This system has never failed me.

[nearlythere]

I never hand over a Fire Risk Assessment without payment!  This is made perfectly clear from the start.  This system has never failed me.

Tjhats probably the best approach however if you did not offer some form of credit you may not be in great demand.
All businesses have a non payment problem of varying levels. It come with the territory.