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Can my client set their own payment terms?

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11 years 7 months ago #930 by BornToBeFree-lance
I'm new to this forum so Hello!
I have been freelance for 4 years and thankfully have very lovely clients who all pay promptly - apart from one. I set out in my invoices that my payment terms are 30 days and they always pay late meaning I have to chase them a lot. Recently when I emailed them to complain (again) they replied saying "Our standard payment settlement terms are net 60 - 90 days, however we reserve the right to extend this if necessary". This seems a bit unreasonable to me and I haven't agreed to this. Can they do this? I hope someone can help. Thankfully they do always pay up eventually but I do a lot of work for them and waiting around for their money is really tough. Thanks in advance x

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11 years 6 months ago - 11 years 6 months ago #931 by Safe_UK
Hi :)

Generally payment terms are agreed by both parties in advance. If no terms are explicitly set then the legislation states that the "default" 30 day terms would apply.

However...

Some customers may impose what are called purchase terms, generally these are sent across with an order for work and if these are the last document in the paper trail these terms would take precedence.

Check the documentation received with any order and see if you have received terms from the purchaser. If you have received this document and subsequently supplied the goods or service then these are the payment terms in force.

But we think it is more likely that the supplier is simply trying to excuse their repeated late payments.

Hope that helps :)

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11 years 6 months ago #933 by BornToBeFree-lance
Thank you, that is very helpful. Their Purchase Order does actually state these terms (in small writing at the bottom) but they often send me this after I've done the work as the work is often carried out fairly last-minute. Looks like I'll have to get used to waiting for the dosh!

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11 years 6 months ago #934 by Safe_UK
Technically the purchase order is only binding if issued before the work is done.

Afterwards makes it a post contractual term and therefore almost impossible to enforce.

Have you considered any other options? Could you ask this client to pay in advance or go on a retainer?

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