Account customers - charging interest

[Corabar Entertainment]

Thanks for that James... so basically (as I suspected), invoice larger amount and issue a credit note afterwards if paid early. (but obviously showing the full details on the first invoice)

[DJ James Lake]

Which means you have more hassle recovering the balance and sending copy invoices and statements out.

To be honest it rarely happens as most companies will either take advantage of the discount or not and pay the full amount.

Accounts departments know the score with prompt payment discounts and from experience they work very well.

Sending statements out shouldn't be hassle anyway if you are invoicing them on a regular basis. I do it as a matter of course when invoicing so that clients can see that payments are up to date.

If they aren't up to date it acts as a prompt for them to settle outstanding payments.

[Twinspin]

I had it when i was a resident dj at a hotel in Hull. When it come to payments they were always late paying.

everytime i did a gig for them it took them 4 months at the least to pay up at christmas it took them while july to pay the full balance.

For this reason i will not work for these places as a resident. Recommended supplier fair enough.

[STEVE HANLEY]

I know in the electrical trade some firms who insist on 60 days will even take a 2.5% settlement discount if they pay within the alotted timescale

[ppentertainments]

I know in the electrical trade some firms who insist on 60 days will even take a 2.5% settlement discount if they pay within the alotted timescale

I have just received a pro-forma for a last minute corporate gig next Thursday. Their terms are 75 days from the end of the invoice month with a 2.5% discount for payments made in time.

Agreement verbally was that payment would take 14 days, which I have agreed to, but nothing about a discount. Will be ringing the client tomorrow to find out.

[nisfo]

Interest!! As in what you could make if the money was in your account?

Play the game without taking the michael. If it is in their account, then they will be earning on what is owed to you.

Just make it clear that loyalty is everything, especially when you plan to serve long term