Charging interest on overdue payment Thread poster: Carole Hognestad
|
I am based in Norway and have one client that consistently pays 2-3 months late. I have given them a chance but to no avail, so have now decided to start charging interest. Can anyone tell me how to calculate the interest, e.g. do I charge on a daily/weekly/monthly basis, and what rate do I use? | | | Tiến Anh Lê Vietnam Local time: 18:46 Member (2007) English to Vietnamese + ... Same problem | Apr 21, 2008 |
I really wonder if someone have successfully charged a client this kind of interest? I want to know the rate that they used. | | | Collection agency? | Apr 21, 2008 |
I have never heard that charging interest works, so why don't you hire a collection agency to get the money? | | | Perereinger (X) Local time: 13:46 EU directive on late payments | Apr 21, 2008 |
Carole Hognestad wrote: do I charge on a daily/weekly/monthly basis, and what rate do I use? There is an EU directive on late payments ec.europa.eu/enterprise/regulation/late_payments/index.htm in the uk see www.smebusinessnews.co.uk/ or google "EU Late Payment directive" | |
|
|
Ralf Lemster Germany Local time: 13:46 English to German + ... Charging interest *can* work | Apr 21, 2008 |
Hi all, Earlier this year, I charged interest to a French client who attempted to unilaterally impose 60 days, despite their explicit agreement with our terms (payment upon receipt of invoice). I charged interest in line with sections 286 and 288 of the Ge... See more Hi all, Earlier this year, I charged interest to a French client who attempted to unilaterally impose 60 days, despite their explicit agreement with our terms (payment upon receipt of invoice). I charged interest in line with sections 286 and 288 of the German Civil Code (which were enacted within the scope of implementing Directive 2000/35/EC into German law). Mind you, they paid by cheque, which meant that the bank charges ate up most of the interest, but the point was clearly made. Best regards, Ralf
[Edited at 2008-04-21 14:38] ▲ Collapse | | |
Thank you for all your comments. I do not want to use a collection agency for this client as they're monthly invoices only amount to around NOK 1-2,000 at the most (approx. £100-200). I guess a collection agency in Norway would be too expensive. It's not that the client doesn't pay it's just that they pay late EVERY time. I'll check out the link for the EU directive and hopefully this will do the trick. They may eventually get sick of paying interest and actually start... See more Thank you for all your comments. I do not want to use a collection agency for this client as they're monthly invoices only amount to around NOK 1-2,000 at the most (approx. £100-200). I guess a collection agency in Norway would be too expensive. It's not that the client doesn't pay it's just that they pay late EVERY time. I'll check out the link for the EU directive and hopefully this will do the trick. They may eventually get sick of paying interest and actually start paying on time. ▲ Collapse | | | Steffen Walter Germany Local time: 13:46 Member (2002) English to German + ... Drop the client | Apr 23, 2008 |
Carole Hognestad wrote: I do not want to use a collection agency for this client as they're monthly invoices only amount to around NOK 1-2,000 at the most (approx. £100-200). I guess a collection agency in Norway would be too expensive. It's not that the client doesn't pay it's just that they pay late EVERY time. Hi Carole, On a related note, it seems it is high time to drop this client (if you can afford to do so), especially when comparing the constant payment hassle to the low-volume jobs they offer. Steffen | | | To report site rules violations or get help, contact a site moderator: You can also contact site staff by submitting a support request » Charging interest on overdue payment CafeTran Espresso | You've never met a CAT tool this clever!
Translate faster & easier, using a sophisticated CAT tool built by a translator / developer.
Accept jobs from clients who use Trados, MemoQ, Wordfast & major CAT tools.
Download and start using CafeTran Espresso -- for free
Buy now! » |
| Protemos translation business management system | Create your account in minutes, and start working! 3-month trial for agencies, and free for freelancers!
The system lets you keep client/vendor database, with contacts and rates, manage projects and assign jobs to vendors, issue invoices, track payments, store and manage project files, generate business reports on turnover profit per client/manager etc.
More info » |
|
| | | | X Sign in to your ProZ.com account... | | | | | |