Getting paid by electronic transfer

[longdogs]

I don't know if any other trades have noticed this growing trend?

Before all this electronic transfer stuff came along, I would complete work for a customer who would then either hand me the cash or write a cheque on the spot before leaving the house. But what I seem to be getting these days is that they ask if they can pay by transfer (fair enough, saves me going to the bank) so I leave them my details, go home, check my balance but it's not been transfered. Not wishing to upset my customers, I give them a bit more time (normally a day or two), check my balance again - still not transfered. So then I have to ring them and ask for the money and they normally say 'sorry, completley forgot' or 'I'll be geting paid at the end of the week so I'll do it then'.

Is it just me or is this a new way of delaying payment? ie; having the work done when you can't really afford it.

 

[crystal ball]

Most of my main customers pay by transfer, usually 30 days later, and thats the quick payers

 

[longdogs]

That's interesting actually. Years ago I was self employed in advertising and, like you, expected a wait of thirty days before payment, but as a plumber, I expect payment instantly, I suppose because I am dealing with the public and not businesses.

Am I wrong in expecting instant payment? Maybe I need to set out my terms of payment on my invoices.

It just amazes me that some people will happily let you do work for them, knowing that they don't have the money to pay you there and then.

I know I couldn't get away with that in a BP garage.

 

[maltaron]

Do you have supplier accounts? If so you are not normally required to pay for 30 days or in some cases the end of the following month. So it can cut both ways.

 

[Harbourwoodwork]

For the first time I had a delay with a BACs payment from a trusted client ,with documented back up, the payment had to be security checked its took 4 day's, anyone else had this problem, is this the start of bank melt down?

 

[Diyisfun]

I pay for all my work & most items, like coal,wood, salt by transfer, its easy there are records. Sometimes I may pay in advance.
Should you be slow in paying they can send you an email, & as said no need for me to get the cash & you to bank it.
I used 1 cheque in 2011 & one in 2012, I have used 1 this year, so far.

 

[EddieM]

get one of these if you want immediate payment.

BTW BACS are called Vocalink now.

 

[securespark]

Depends who you are with:

I'm with Santander and they call it Faster Payments.

 

[jeds]

I love it. Sent out 6 invoices on Thursday last week and 4 have been paid already. I hate going to the bank so it's great when the dosh just arrives in my account without me having to do anything. I get a text alert every day which lets me know what's gone in and out.

 

[securespark]

Maybe I need to set out my terms of payment on my invoices.

Even better, do as I did. When you do an estimate, put the terms on the bottom of there.

I still got some, though.

Friend of me Mum's wanted me to do some work for her. Large job. Explained I was just starting out, appreciated swift payment.

No problem, me and your Mum go way back.....

When the job was over, last day she was out, so left it a week then rang her.

I'm away till the end of next week I'll pay you then, is that OK? I'll even add a bit on extra for your inconvenience.

Came & went, no money. Eventually rang a fortnight later as bills coming in and no money to pay them with...

Rang her on her mobile.

She was really cross. Well, I'm on a train in Birmingham, so I can hardly pay you now, can I?

No, but your husband is at home. I can pop round and collect the money now, otherwise I can't pay my bills.

What about my bills?

If you have bills that needed paying why did you ask me to do all that expensive work for you?

Phone went dead.

I went round to collect the money.

 

[NickS601]

I am not a tradesman, however I think it is probaly down to the type of person. Those who would pay "on the nail" would do so irrespective of the payment being cash, cheque or BACS. I personally pay immediately unless it's a large job when I will ,ake weekly stage payments appropriate to the level of work carried out. Had a patio laid last year when I was away by a highly recommended friend of a friend and because I was 100% cinfident he would do it right or sort it out paid him before I went. My best mate is a roofer and his attitude is ... if a bill is £19.97 and the bloke gives you £20 and doesn't try to knock the bill down to £19 then you know what type of payer they are.

 

[EddieM]

Depends who you are with:

I'm with Santander and they call it Faster Payments.

Faster payments is a bank wide initiative. Nowt to do with Santander.

 

[EddieM]

I always pay on the nail, not really 'cos it's morally correct (which it is) but also so I know just how broke I'm gonna be!!

 

[longdogs]

Thanks for your replies. I guess it is just down to the individual whether they pay straight away or keep you waiting. Personally I would never keep a tradesman waiting for his money and wouldn't have the job done if I couldn't afford it.

I tend to stay clear of trade accounts as I have had bother in the past, again where customers have not paid me so I couldn't pay my bill.

I might get my hair cut later then tell them that I will pay them at the end of March.

 

[JBR]

We have never failed to pay up immediately on completion of the work.

It's a shame that tradesmen cannot have something like 'Which? Local', but with reviews on the speed of payment by customers! That would only be fair, surely.