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Poll: Do you usually charge interest for late payment of invoices?
Thread poster: ProZ.com Staff
ProZ.com Staff
Local time: 12:46
SITE STAFF
Sep 6, 2005

This forum topic is for the discussion of the poll question "Do you usually charge interest for late payment of invoices?".

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A forum topic will appear each time a new poll is run. For more information, see: http://proz.com/topic/33629


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Claudia Iglesias  Identity Verified
Chile
Local time: 15:46
Member (2002)
Spanish to French
+ ...
I don't charge interest Sep 6, 2005

but I try not to work for that client again if it happens systematically.

Claudia


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Roberta Anderson  Identity Verified
Italy
Local time: 21:46
Member (2001)
English to Italian
+ ...
just mentioning interest in final reminder has proved sufficient Sep 6, 2005

no, but just mentioning (in final reminder) that interest will be charged (quoting applicable Italian law and interest rate) should payment not be received within 10 days, has been enough to ensure prompt payment in the couple of cases I came across so far.

Roberta


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xxxBrandis
Local time: 21:46
English to German
+ ...
pricing is done usually while agreeing upon the PO terms Sep 6, 2005

Hi! if the outsourcer comes with 20% down payment + 30 invoice clearance, then the originally quoted price will be held. No down payment and 30 - 45 - 60 days etc., depending upon the viability and scope of the project a nominal interest around 2.5 - 3.5 max 4%per 30 days is built into the price. It would be interesting to know how much interest you guys usually charge.Best regards, Brandis

[Edited at 2005-09-06 08:33]

[Edited at 2005-09-06 09:18]


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Pernille Chapman  Identity Verified
United Kingdom
Local time: 20:46
Member (2004)
English to Danish
+ ...
I voted 'Yes'... Sep 6, 2005

...because I state in my payment terms that interest will be charged on overdue payments. That doesn't mean, though, that I always receive said interest! Usually, if I don't hear from clients after a polite reminder, I send out a new invoice including interest approx. 10 days after the original payment date. Clients tend to ignore this, but at least it makes (most of!) them pay the original amount. And I have actually received interest once or twice, so perhaps we just need to enforce our terms more heavily!

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Nikki Graham  Identity Verified
United Kingdom
Local time: 20:46
Partial member (2003)
Spanish to English
I need help with this one... Sep 6, 2005

I have never charged interest or mentioned it, but am beginning to think I should. One of my main customers (an agency) seems to be taking me for a ride on an increasingly regular basis and payments are getting later and later, and, of course, it's always the largest invoices that take the longest to be paid.

So how much interest does one charge? What's the wording used? Do you have to send out another invoice with the revised amount to pay? How does this get recorded for income tax purposes?

Sorry about all the questions, but I'm totally ignorant on this one Thanks


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Nikki Graham  Identity Verified
United Kingdom
Local time: 20:46
Partial member (2003)
Spanish to English
Ignoring 2nd invoice Sep 6, 2005

Pernille Chapman wrote:

...I state in my payment terms that interest will be charged on overdue payments. That doesn't mean, though, that I always receive said interest! Usually, if I don't hear from clients after a polite reminder, I send out a new invoice including interest approx. 10 days after the original payment date. Clients tend to ignore this, but at least it makes (most of!) them pay the original amount. And I have actually received interest once or twice, so perhaps we just need to enforce our terms more heavily!


Hi Pernille, I notice that you are in the UK too. How do you record this 2nd invoice for tax purposes? And if they don't pay the interest but the new amount has gone into the books, doesn't that mean we actually get paid less than the amount we say we're earning?


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