Support Payontime

  1. Forum
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Do we have to accept payment by instalments?
× Welcome to the late payment of commercial debts (interest) act. Forum!

Post questions here regarding the use of the Late Payment Legislation

Do we have to accept payment by instalments?

More
9 years 8 months ago #1645 by Sisterhood85
Do we have to accept payment by instalments? was created by Sisterhood85
Thank goodness I've found this forum! My brother owns a small decorating refurbishment firm and I do bookwork invoicing etc for him. I must admit we have usually been very lucky with invoices being paid on time. At the beginning of the year he did some work for a company agreed price of £1800. Work was completed on time client invoiced. After 30 days he hadn't paid so I started to phone, never any answer and sent various emails letters, no reply. On the 10th March I received a letter apologising for non payment and asking if we were aware that his company was a subsidiary of another company and that they had a cash flow problem. He has offered to pay 6 instalments of £250 every fortnight and then a final payment of £300. I have to say that this sort of puts my brother in a cash flow problem as well and he wonders does he have to accept these terms. I said perhaps we should charge interest if the company will only pay in instalments

Please Log in or Create an account to join the conversation.

More
9 years 8 months ago #1647 by David J
Replied by David J on topic Re: Do we have to accept payment by instalments?
Hello Sisterhood!
If your customers business does have a cash flow problem then this really isn't your issue. You could claim interest and compensation but that might make the situation more difficult.
However at least the client is talking to you and offering a solution. So in the first instance I would ask if the current offer of installments could be improved. Then perhaps ask if a token additional amount could be paid to cover the inconvenience.
This may help retain the client and once they are over their cash flow problem then you may get more business (just make sure you get paid up front of have some sort of retention in your terms though!).
Others may say just make a claim and go legal but that could tip them into liquidation and you end up with nothing. Unless the client is bluffing of course..
I would see how the installments go and if one is missed, even by a day, then I would take action.

Ultimately it is your call.

Good luck

David

Please Log in or Create an account to join the conversation.

  1. Forum
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Do we have to accept payment by instalments?
Time to create page: 0.130 seconds