Late payers since converting to bacs

[Windowcleaner2013]

Before covid I would call back for collection and the cash flow would be great. During covid I got all of my customers to pay me online via bacs. It is great because its saving me a hell of a lot in fuel costs and its saving alot in time, more time for family, hobbies ect. However I'm noticing a trend where some of my customers sometimes forget to transfer the money, or they will transfer two payments on the next clean, or they will just take 6+ weeks to pay me (the majority of my customers are 8 weekly)

To get my cash flow running again iv put a note on the bit of paper with my account details that requests they transfer the money into my account within 3 weeks. Then I write down the date it needs to be paid by. If they fail to pay by that date I will call back with my card reader. If it becomes a trend then I may stop their service.

I'm interested to know others thoughts on my new method.

 

[Iron Giant]

3 weeks is far too long to expect a payment, I specify 3 working days for bacs payments some take a week to pay which is fine with me but I don't have many paying via bacs as most of mine pay by direct debit, ideally, you need customer's mobile numbers so you can send text reminders this is will be far more efficient for you

 

[marlowswindows]

I've been doing this for 5 years now. Best thing I did 90 pe4cent of customers pay with 2 days of clean.

I would say go with a more professional approach with your business cards front graphic and the back a receipt with bank details listed. Works a treat

 

[PDixon cvs]

Before covid I would call back for collection and the cash flow would be great. During covid I got all of my customers to pay me online via bacs. It is great because its saving me a hell of a lot in fuel costs and its saving alot in time, more time for family, hobbies ect. However I'm noticing a trend where some of my customers sometimes forget to transfer the money, or they will transfer two payments on the next clean, or they will just take 6+ weeks to pay me (the majority of my customers are 8 weekly)

To get my cash flow running again iv put a note on the bit of paper with my account details that requests they transfer the money into my account within 3 weeks. Then I write down the date it needs to be paid by. If they fail to pay by that date I will call back with my card reader. If it becomes a trend then I may stop their service.

I'm interested to know others thoughts on my new method.

mine say 24 hrs

 

[scottish cleaning service]

I have some who don't pay till three months and a few who pay every two months. As long as they pay i don't bother but i like the idea of standing order. One girl today asked if i wanted her to set up a standing order and i wondered how i didn't ask for it. When busy one doesn't pay much attention but you really need a payment system inplace.

 

[Part Timer]

We send a reminder after a week, vast majority apologise and pay immediately. We have some, that we know very well, say they'll pay double next time.
We are owed after 2 weeks, by residential customers, less than £100 so not a great problem

 

[Pjj]

Before covid I would call back for collection and the cash flow would be great. During covid I got all of my customers to pay me online via bacs. It is great because its saving me a hell of a lot in fuel costs and its saving alot in time, more time for family, hobbies ect. However I'm noticing a trend where some of my customers sometimes forget to transfer the money, or they will transfer two payments on the next clean, or they will just take 6+ weeks to pay me (the majority of my customers are 8 weekly)

To get my cash flow running again iv put a note on the bit of paper with my account details that requests they transfer the money into my account within 3 weeks. Then I write down the date it needs to be paid by. If they fail to pay by that date I will call back with my card reader. If it becomes a trend then I may stop their service.

I'm interested to know others thoughts on my new method.

We tend to allow up to 28 days payments on all jobs domestic the same as commercial, but I do agree with what you are saying , I feel that cash flow is always happening , some months we are owed many thousands the next month it’s just a few hundred , but as long as it comes in I don’t tend to worry to much , I do keep an eye on certain jobs if I think there might be a problem building up though

 

[Windowcleaner2013]

I've been doing this for 5 years now. Best thing I did 90 pe4cent of customers pay with 2 days of clean.

I would say go with a more professional approach with your business cards front graphic and the back a receipt with bank details listed. Works a treat

Thank you for your reply. What time frame do you give them to pay in and how do you fraze it on your card please?

 

[Windowcleaner2013]

3 weeks is far too long to expect a payment, I specify 3 working days for bacs payments some take a week to pay which is fine with me but I don't have many paying via bacs as most of mine pay by direct debit, ideally, you need customer's mobile numbers so you can send text reminders this is will be far more efficient for you

Thank you for your reply. How do you effectively ask for a customers mobile number please?

 

[scottish cleaning service]

I heard a fascinating story about a massive pvc installer in Cumbernauld. Won awards since their creation in 2006 and had 300 employees. Scottish success story and made all the curtain walling for new buildings. Owed my pvc company that I use £70k and they had to pay or no more Tic. Unit boss would call them up and they would pay £20k to get some more stuff. Anyhow they went above unit boss to director and he okayed £200k in credit. You know what's coming next, they went bust and owed everyone. When a company can't pay a bill then that's the first warning sign, the next is when they want to increase their credit to get stuff to stay afloat. When they can't pay their bill then you have to put them on COD or you end up playing the cat and mouse game. No matter what size a company is, they can go bust and take alot of small companies with them. I heard folk are now returning to cash rather than use a debit card. ?

 

[Chris34]

Before covid I would call back for collection and the cash flow would be great. During covid I got all of my customers to pay me online via bacs. It is great because its saving me a hell of a lot in fuel costs and its saving alot in time, more time for family, hobbies ect. However I'm noticing a trend where some of my customers sometimes forget to transfer the money, or they will transfer two payments on the next clean, or they will just take 6+ weeks to pay me (the majority of my customers are 8 weekly)

To get my cash flow running again iv put a note on the bit of paper with my account details that requests they transfer the money into my account within 3 weeks. Then I write down the date it needs to be paid by. If they fail to pay by that date I will call back with my card reader. If it becomes a trend then I may stop their service.

I'm interested to know others thoughts on my new method.

Have you looked into using 'GoCardless'? Honestly I never have an issue with anyone using that method of payment, I've even got some that are set up to take a payment on a set date of every month, I love those ones as I don't have to do anything it's just automatic. I've got some that are cleaned once every 2 months but I have it automatically taking a payment each month, so if it's a £25 clean it will be £12.50 per month but cleaned once every 2 months, works really well for both the customer and for me.

 

[Iron Giant]

Thank you for your reply. How do you effectively ask for a customers mobile number please?

I just ask them straight out for a mobile number when signing them up I tell them it's for locked gates if a gate is an issue or text reminder for payment if they are paying bacs, I use Cleaner Planner so all details are added at the sign up and automated multiple texts are sent with the click of a button but for me it only 2-3 jobs at a time as that's the most owing via bacs


I will only sign up a customer with them wanting to pay bacs if they are an older customer who I feel won't mess me about for payment the rest it's GoCardless people are very busy and paying the windy can slip their mind I have had no issues in signing them up to GC direct debit in the last 8-9 years

 

[marlowswindows]

Thank you for your reply. What time frame do you give them to pay in and how do you fraze it on your card please?

I don't give any time frame. I have good customers 10 percent that pay online probably double up the month after. A game of luck really

 

[scottish cleaning service]

The best thing is to get their mobile number and send a text. Usually they pay right away.

 

[PDixon cvs]

I've started invoicing through quick books can send reminders from their I hate having to ask people lol

 

[AndyD]

Before covid I would call back for collection and the cash flow would be great. During covid I got all of my customers to pay me online via bacs. It is great because its saving me a hell of a lot in fuel costs and its saving alot in time, more time for family, hobbies ect. However I'm noticing a trend where some of my customers sometimes forget to transfer the money, or they will transfer two payments on the next clean, or they will just take 6+ weeks to pay me (the majority of my customers are 8 weekly)

To get my cash flow running again iv put a note on the bit of paper with my account details that requests they transfer the money into my account within 3 weeks. Then I write down the date it needs to be paid by. If they fail to pay by that date I will call back with my card reader. If it becomes a trend then I may stop their service.

I'm interested to know others thoughts on my new method.

They just get a text reminder after a few days, usually they are very apologetic and pay straight away. It’s just annoying when the same people do it every month! One customer pays the day before which is nice ? shame they all don’t do that.

 

[Chris34]

They just get a text reminder after a few days, usually they are very apologetic and pay straight away. It’s just annoying when the same people do it every month! One customer pays the day before which is nice ? shame they all don’t do that.

Yeah it gets to a point where it's embarrassing, sending out the text each month and them replying with the apology ? I've got a few like that that don't want direct debit, they always pay though so I don't worry about it. Never had anyone not pay so I always remind myself of that.

In the early days it's a big problem though as cash is tight and every £20 makes a difference to cover the bills. Which reminds me, I've got a £20 cash one I need to collect from last week, pensioner hiding from me ?

 

[scottish cleaning service]

Just ask them to set up standing order.

 

[Yogi1872]

I just ask them straight out for a mobile number when signing them up I tell them it's for locked gates if a gate is an issue or text reminder for payment if they are paying bacs, I use Cleaner Planner so all details are added at the sign up and automated multiple texts are sent with the click of a button but for me it only 2-3 jobs at a time as that's the most owing via bacs


I will only sign up a customer with them wanting to pay bacs if they are an older customer who I feel won't mess me about for payment the rest it's GoCardless people are very busy and paying the windy can slip their mind I have had no issues in signing them up to GC direct debit in the last 8-9 years

With go cardless what would happen if you decide to put £200 for every paymeant one month ? I know the customer gets an email but most probably don't look. Would go cardless let you go ahead and take that £200?. Or is there a system in place where the customer has already agreed a specific amount.

 

[Yogi1872]

I usually write on a piece of paper and staple it to the card next time round that it's due from the previous clean too. Changed my buisness cards to yellow aswell as they were white before so there not the same colour as envelopes.

 

[Chris34]

With go cardless what would happen if you decide to put £200 for every paymeant one month ? I know the customer gets an email but most probably don't look. Would go cardless let you go ahead and take that £200?. Or is there a system in place where the customer has already agreed a specific amount.

It would allow you to do it, what the implications of doing that is anyones guess as it's a contract between you and the customer. So lets say you verbally agreed to clean someones Fascias, conservatory roof and windows and then did the work and took £200 for doing it, well if the customer then contacted their bank and cancelled the payment then your problem is getting the customer to pay what they owe and possibly going via the court process, but it is your word against theirs.

On the other hand if you billed the customer for £200 for work that you didn't do then they can cancel it and claim it back from your bank.

If you tried to do say 100 x £200 payments then I really don't know what would happen. Technically it should be possible, but whether the banks have something in place to stop that happening... It does take 4 working day to do the transfer, but there is now an immediate instant payment that you can take straight away. So in theory, if you had lost the plot, you could bill 100 customers £200 and then flee the country.