In my experience, the larger the client, the slower they pay. I enjoy working with small outfits because they generally pay promptly being in the same position as myself, but large companies? You get passed from Dept to Dept and they hide behind their anonymity.

Be careful, start doing something now! This problem ruined Portuguese small and med business. Now if we are lucky we get payed in 240 days!!

We offer discount for prompt payment. Seems to work.

In my experience it’s an Irish trait. While Euro and International customers are willing to pay by credit card and use their banks for credit, Irish business usually ask for a months credit, take two and then send a series of post dated cheques.

I know a good few companies that look for 50% upfront before they do the job, some even look for 70% for a new client. If I was operating a company that is what I’d be doing.

There are ways to deal with slow paying B2B customers.
1. Request payment by call or visit the minute it’s due and not a day later.
2. Follow up with another call in two days time notifying them of a disruption to service if non payment. (Don’t worry about the threat of them buying elsewhere, this is almost key a bluff)
3. Follow up with another call in two days. Pay personal visit by your Rep or Agent on the road.
4. Negotiate a payment plan with your customer. If plan not followed then stop service to them.

For non paying customers.
1. For companies, threaten a winding up petition, this will let other suppliers know that there is payment problems which could put off credit to the same customer.

For sole traders.
1. Start legal proceedings with the view of getting a charge attached to property or assets for the value outstanding. Asset is sold then debt is paid. This can force them into paying.

Change your credit policy and payment methods.

1. No credit from such a date. Customers with a balance convert to 12 month loan for them.
2. Insist on credit card payments or bank transfers.

In my opinion two problem is two fold.

1. Cheques, are time consuming and not worth the paper. We insist on bank transfers now

2. Attitude, “sure don’t I always pay you”. I hear this all the time. But Irish don’t like asking for money either. Re adjustment needed both sides.

This has been the way the past 4 years and I would be happy if I got it in 56 days.