Large Business Not paying invoices

[Madairy]

I've been in business for 11 years and have begun doing contract work with a large retirment company. I've engaged in work from hanging art to framing art. They have become over 60 days in paying. How should I handle this account? At the very least I require large accounts to pay within 30 days.

thanks for any help

Jay

[Doug Gemmell]

Have you sent them an invoice? Have you called them?

Your initial contact (the person who contracted you to do the work) may be able to resolve the problem if you talk to them about it. If not, send another invoice noting the overdue amount, wait a week, then call the accounting department.

[GUMBY, GCF]

yriadam
Okay First as Doug stated call the contact person make sure there were no problems with the job and the bill had been approved to be paid!~ If not hten resolve that!~ If that is clear then ask him if he wants you to call the accounting dept. and if so who should you talk to and what is the contact number!~ Have the PO & invoice # handy!~ If he says he will contact them for you. Have him have them call you today so you know when payment will be sent out. If they say payment ahs been sent ask for the check number and the date!~ Wait max 4 day then call back if no payment has been recieved!~ Or you can just send them a bill for late payment fee of $35.00 and !% of the balance. If they payit fine if they don't. The ball is in your court!~ Depends on the amont where you go from here!~ Make sure if and when the payment comes you do a follow up call to your contact person and thank them!~

[DTWDSM]

Jay,

Don't know what you mean by "retirement" company but if this is a company that is involved in the retirement home/nursing home business, get used to it.

I sold medical supplies for 10 years before doing this and 60 or 90 days is standard in that business. Be nice and do what the people above said, if they have more work to be done tell them that they are on hold til you get some payment. The person who purchased is probably not the one who pays and they more than likely do not realize you have not been paid, let them do some work for you.

[Elaine]

I worked at a Medical Mfg. company, and 90 days was standard unless you offered a discount. They paid discounted invoices first and rest were scheduled out to 90 days. They make money off your money graemlins/shrug.gif This wasn't always the case, but they changed their practices under new finance management, so rules change depending on who's making them.

But, some vendors for custom work required a deposit before work commenced; for larger invoices (many, many thousands),a deposit, a progress payment and then final payment on delivery.

Make some of your own rules, you can't afford not to be paid and not keep your cashflow moving

my 2 cents

Elaine

[JFeig]

Here in the land of the weak auto industry, 90-120 days was the normal delay. That is why I do not accept any open accounts from them any more. I will only accept COD via a credit card.


They do this to hold onto their cash.

From past experience, working in accounts payable for a major company (GM) this was a planned process. However, with that said, vendors with a bigger hammer :D were paid on time (utilities, Gov't taxes, trucking companies, tier 1 suppliers).

[Madairy]

Thank you all so much for the input. I at least know that I am on the right track. And thank you for the "inside" information. This is the first contract account for a nursing home facility - so I have much to learn. You have to wonder why anyone would want to do work for a company who's payables are 60 to 120 days. I'm a small business so I guess my hammer remains "small" THANK YOU ALL FOR THE ADVICE!

[Dave]

Originally posted by yriadam:
They have become over 60 days in paying. How should I handle this account?

Jay [/QB]The wording of the above indicates that they have some history with you and this is a new trend or ocurrence. If this was a first sale to them on credit, how did you qualify the account?

My advise in today's world is do not open any new in-store accounts. Nearly everyone and every company has a major credit card. Most purchasers for universities do too. Often municipalities do not, but are controlled such that if everything is in order you do get paid timely with a P.O.

Studies show that it cost a major corporation anywhere from $ 50.00 to $ 150.00+ to issue and do the accounting for a P.O. Many major institutions now require purchasers to use an institutional credit card to pay for any purchase below a set amount...say $ 100.00.

I only have in-store accounts for those I've had as such for many years and have a proven payment record. All others pay cash...or check or credit card. In fact, if someone I had not dealt with expected to establish open credit with me even with a purchase order it would immediately throw up a red flag that they may be using vendor financing. There are so many alternatives to in-store accounts that I'd say "Sorry, in God we trust...all others pay cash."

Dave Makielski


"What we have here is a failure to communicate."
(Name that movie)

[Jerry Ervin]

Dave

'Cool Hand Luke'

[Dave]

Your good, Jerry...how about...

"I can't help it, I'm just drawn that way."

Sorry to jump off the thread subject and take a brief recess... :rolleyes:

Dave Makielski

[Jerry Ervin]

I think that one was in Who Framed Roger Rabbit.

[Dave]

Right again...two of my favorite lines.

Another paraphrased quote from from 'Cool Hand Luke'...


"She doesn't know what she's doing to us."

"Oh yes she does!"

Here's another one and again I paraphrase. I can't resist one last one...

"You packed beer up here?"

"No, You did." :D

Dave Makielski

[Donna at MetroAF]

We recently had an issue with a company that never paid us on time. We finally got to the point where we told them we not not take any new orders until they paid their open invoices, then anything new was c.o.d.

They had one invoice left, and the company folded. We called, left several messages and emails. No one would return our call. Finally, we got through to someone who said there was no accounts payable department and we would have to wait until there was.

We made up a collections letter and finally got payment.

I wouldn't think you'll have the same problem, but sometimes, threats do work.

[WarEaglemtn]

One way to deal with this is to add on a bit more than normal in charges and offer a 2% discount for payment within 10 days. Many companies have a policy of always paying discounted billings immediately. If you build in the 'extra' so they can pay fast with a discount it may help.

[JFeig]

not always.........GM had apolicy to take the discounts no matter how long the discount period had lapsed. I.E. they would take a discount even though they paid 120 - 150 days