Invoicing / Credit Terms

ballooba

What is the term that I put in the small print to indicate that an invoice is immediately payable? i.e. that no credit applies.

kluivert

Just exactly that. Might also be good to have a sign as well stating that "No credit available".

ck1

Just a little note which you might find interesting. As from the 8th Aug 2002 an EU Regulation came into force in this country wherenby you can charge interest on payment due if not paid after 30 days. I think that the interest rate is around 1.25% per month but this rate is only from memory.

kluivert

ck1 is right there. You have to disclose this in a note on the invoice though.

The rate is connected to the European Central Bank Interest Rate and your allowed to charge a certain percentage of that rate higher than the ECB's Rate. Sounds confusing sorry.

Our man in Havana

kluivert wrote:

ck1 is right there. You have to disclose this in a note on the invoice though.

The rate is connected to the European Central Bank Interest Rate and your allowed to charge a certain percentage of that rate higher than the ECB's Rate. Sounds confusing sorry.

7% over the ECB rate is allowed.

Fitzer12345

As well as talking about the credit terms, your best putting a line saying you retain full rights over the goods full payment is recieved.

ROVER

ballooba wrote:

What is the term that I put in the small print to indicate that an invoice is immediately payable? i.e. that no credit applies.

PAYABLE AT SIGHT

Victor

"Payment due ..... August 2005", but you should really make it clear to them up front that payment is due on completion of the (section of) work.

shatter

ballooba wrote:

What is the term that I put in the small print to indicate that an invoice is immediately payable? i.e. that no credit applies.

In Germany I use:

The invoice amount is payable without deductions until xx.08.2005. All goods remain property of (my) YYY company until complete payment.

This enables me to charge interest without further notice, if the payment date is exceeded. It also gives me the right to collect the invoice amount through court - w/o further notice.

Joachim

vector

Question is answered now if I could ask another related.


I send a customer a 30day invoice, 45 days later I've heard and received nothing, I could phone and remind, but if I take the paper route do I just resend the invoice by post endorsed as "PAYMENT OVERDUE REMINDER" & "COPY"?

Victor

vector wrote:

I send a customer a 30day invoice, 45 days later I've heard and received nothing, I could phone and remind, but if I take the paper route do I just resend the invoice by post endorsed as "PAYMENT OVERDUE REMINDER" & "COPY"?

Phone is better - to your contact and/or their accounts payable people. Then if there is no response, write and phone.

shatter

vector wrote:

I could phone and remind, but if I take the paper route do I just resend the invoice by post endorsed as "PAYMENT OVERDUE REMINDER" & "COPY"?

basicially yes, but - as Victor stated - phone gives better results. If the customer has payment problems, you can offer pay by installments (so you help the customer and get at least some of it). Also a friendly "talk on the line" can result in further orders. Customer relations managment ...

Joachim