A grocery store buys a truck load of apples on 60 day payment terms. They sell the apples off at almost cost. Then they invest the revinue for 30 days and make their money on the "interest free loan" rather than the sale of the apples. Doing that to a subcontractor is shabby though. Here's the thing- they make next to nothing if you wait 60 days.
No this is not common practice and is a scam. You should have said to them, "Now that you have informed me that you can pay my invoice immediately, I expect payment in FULL from you immediately as per our agreement prior to the work being conducted. Should this not be done, I will I will be charging you 5% interest on top of the full amount on the invoice for each 7 days this is late."
I haven't heard of the discount offered before but big(ger) businesses can quite often try to delay their payments, especially to smaller businesses, for as long as possible to try to smooth out their cashflow during the year and probably earn interest on the money for as long as possible.A bit bullyish really as there isn't much you can do i assume, especially if you are a smaller business.
Bizarre. Puts me in mind of my own workplace that will give you a pass to park on work premises if you pay THEM £40 per month. I never understood it so have always parked 10mins away on principle. But this is different because it is about accessing your money earned in the first place. Wonder what the tax office make of it?
Sean! That is vile! You should complain to the better business bureau! If you do anything more for them, Up your invoice by 15% for service charges! also, put on your invoice that payment is due in 10 days! You know any service work you hire someone to do is payable up front!
I believe that this is theft. You should not have to take a pay cut to get your own money. Thank you for bringing this to my attention. I won't get scared like this. 😢
A grocery store buys a truck load of apples on 60 day payment terms. They sell the apples off at almost cost. Then they invest the revinue for 30 days and make their money on the "interest free loan" rather than the sale of the apples. Doing that to a subcontractor is shabby though. Here's the thing- they make next to nothing if you wait 60 days.
No this is not common practice and is a scam. You should have said to them, "Now that you have informed me that you can pay my invoice immediately, I expect payment in FULL from you immediately as per our agreement prior to the work being conducted. Should this not be done, I will I will be charging you 5% interest on top of the full amount on the invoice for each 7 days this is late."
If you work for them, again, do it pro forma...my friend does this to his customers, if they are bad payers.
I haven't heard of the discount offered before but big(ger) businesses can quite often try to delay their payments, especially to smaller businesses, for as long as possible to try to smooth out their cashflow during the year and probably earn interest on the money for as long as possible.A bit bullyish really as there isn't much you can do i assume, especially if you are a smaller business.
Bizarre. Puts me in mind of my own workplace that will give you a pass to park on work premises if you pay THEM £40 per month. I never understood it so have always parked 10mins away on principle. But this is different because it is about accessing your money earned in the first place. Wonder what the tax office make of it?
Sean! That is vile! You should complain to the better business bureau! If you do anything more for them, Up your invoice by 15% for service charges! also, put on your invoice that payment is due in 10 days! You know any service work you hire someone to do is payable up front!
I believe that this is theft. You should not have to take a pay cut to get your own money. Thank you for bringing this to my attention. I won't get scared like this. 😢