Prompt Payment Discounts

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i dont, although there is one company that i done a job for a few month ago who took 2 month to pay. if they ever phone, for the inconvenience i will be adding 20% to the bill, and stick a note on invoice saying 10% discount for payment with 14 days.

and the 'extra' is compensation for last time.

 
i would find this more of a hassle, you write an invoice for 1 amount they pay another arrrrrr.

the few job i have done i give them an invoice when i give them the cert and ask for a chq!

 
I have some commercial customers who generally take about 6 weeks to pay... but they get charged at a higher rate so I just get on with it...

Nae use when you come back from yer holidays though!!!

 
We don't with our company, but a company I used to work for did, the only trouble I found was some customers used to take the discount even though they didn't pay on time, and then you have a job to recover it.

 
Over the years I have found two problems with settlement discount.

1. Where do you draw the line if a customer pays a few days late but the cheque was posted before the cut off date? I have had numerous arguments over the years with this & if you leave the settlement amount outstanding it never gets paid & you end up issuing a debit note to cancel it.

2. It can play hell with VAT returns especially with the above scenarios.

Obvious solution is not to offer it & put customers on stop when their accounts are overdue.

 
We have done this on a few occasions; esp. if it`s a new customer & the 6th sense kicks off a bit.......

Normally 5% if paid within 7 days - mind you, that 5% goes ON the bill before I issue it - If they pay promptly, I get the amount I want. If they don`t, they owe more :)

(plus, after 28 days you can add interest at the statutory rate of 8% ; plus a late payment fee of

 
What is the legality of this? We were told by an accountant that we can't add interest as a percentage as we are not a licensed credit broker. We have a fixed price to re-issue an invoice.
late payments of debt act or something similar

see here for more info

 
With the post the way it is, cant believe they are striking, I am trying to get more customers to pay by bacs. I am having a lot of sucesss and it really helps the cash flow. I may offer a discount if paying by bacs in the future as the extra charge for the o'draft will be covered by quick payment, I hope!

 
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