# Getting paid for printing work!



## bertiewooster (Jul 7, 2007)

Just thought I'd throw this question at my fellow t shirt printers. Do you manage to get paid for all the orders you do.
We do not do so bad, but here in the UK there are companies who expect credit terms, the usual is that 30 days after order, they pay.
However in reality, if you offer the terms there are a good few out there who just ignore them!
I've just withdrawn terms from one of my customers who decided that he would pay me 5 months after the order instead of 1 month and that's after many requests from us to pay.
Thankfully a big percentage now pay on credit card and despite the loss of around 4% of the bill, at least we know it's in our bank.
We have a government who do nothing to protect small businesses from people who pay late or not at all.
Is it the same in the US and other countries?


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## suthernkumfert (Jun 29, 2010)

bertiewooster said:


> Just thought I'd throw this question at my fellow t shirt printers. Do you manage to get paid for all the orders you do.
> We do not do so bad, but here in the UK there are companies who expect credit terms, the usual is that 30 days after order, they pay.
> However in reality, if you offer the terms there are a good few out there who just ignore them!
> I've just withdrawn terms from one of my customers who decided that he would pay me 5 months after the order instead of 1 month and that's after many requests from us to pay.
> ...


 
yes it is the same in the us, the thing over here is most ccompanies do as you described and you could start to charge them late fees and even take them to court but by the time you take them to court to get your money you would spend more than you would get and that would be an headache. All you can really do is tell them that they have to pay up front or with in what ever time you all agree on. if they dont and they pay late then the next time they order just make them pay before you print. also you can charge late fees when they dont pay on time. i hope this helps.


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## Dan K (Nov 15, 2006)

We've been able to survive and grow year after year not offering terms to anyone. 50% deposit, balance due upon completion for most orders. Contract orders on customer supplied garments after the first 1 or 2 orders don't require deposit. Even our largest corporate and contract customers are willing to comply with these terms, so I'd say give it a try and see what happens. I know a few will scoff at it, but in my experience the majority are OK with it...


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## bertiewooster (Jul 7, 2007)

Thanks for the replies.
We do have a 'Late Payment Act' in the UK, which allows us to charge interest on invoices, to late payers. In reality every time we have tried to do it the customer has ignored it!
The costs to take them to court make it difficult to really do anything about it.
I think the 50% deposit idea works well and have used it to good effect here.
Thankfully most people we deal with are happy to supply card details and we take the whole amount on despatch day.
It's when you get to the bigger orders that they want credit terms, my view now is if they do not pay then we will not deal with them.

There are a few exceptions of course: schools, universities, colleges, local councils and the ones we have known long enough to trust.


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## EnMartian (Feb 14, 2008)

Do you have your customers who are granted terms fill out a credit application? We do that, and check references before terms are granted. It does help. 

Also, on a completely unrelated note, love the screen name, is that because of the Wodehouse books, or the Fry and Laurie television series?


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## Dkenzie1 (Sep 22, 2011)

About the credit card thing, alot of the bushiness in the state that I'm in give a cash discount that is equal to the credit card percentage. that way if you pay by credit card you loose the discount and recoup the 5 loss to the credit card company.


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## selanac (Jan 8, 2007)

Dan, I thought that was illegal to give a cash discount. I know companies do it, but don't think it's a good idea. 

It cost money to be in business, and we either lose money or charge it back to the customer.


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## binki (Jul 16, 2006)

How do you qualify the lead? In the USA we have a business credit rating company called Dunn & Bradstreet. If they don't have a favorable profile on D&B then they pay cash up front unless they have a history with us and still we never do work for less than 50% down.

If you are giving credit then you need to qualify the sale. 

In the USA you can have a contract that states that interest is due if the payment is not made on time and you can go to court to get it if they do not pay. 

Now some will say winning and collecting are two different things but those that say that don't know the law. Around these parts a winner in a lawsuit can file for a statement of assets and then have the court order a sale of property to collect the judgement and court costs.


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## wormil (Jan 7, 2008)

Everyone pays 100% upfront unless I say different, but occasionally I say different. But those occasions usually turned out bad so now everyone pays upfront.


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## bertiewooster (Jul 7, 2007)

Yes the name is down to the brilliant Wodehouse writing and the superb Fry & Laurie tv version!

As for credit application forms, we have tried this route and it can be OK but it's not fool proof. I think it's about time all businesses were paid on collection. 
When we go for our weekly shopping, we either pay or we don't get it, what's the difference!! : )


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## binki (Jul 16, 2006)

The easy way to do it is to only take 100% payment on order for new customers and maybe 50% down and 50% due at pickup for established customers. 

Never let them pick up without payment.


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## jimprinter (Oct 13, 2011)

From my understanding it is allowed to give cash discounts. What is not allowed is to charge more for credit card purchases, but giving a discount for cash is fine.





selanac said:


> Dan, I thought that was illegal to give a cash discount. I know companies do it, but don't think it's a good idea.
> 
> It cost money to be in business, and we either lose money or charge it back to the customer.


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## Alice1984 (Jan 16, 2012)

I require a 50% payment upfront, and 50% upon the completion of the project. I also offer an early payment discount of 5% as an incentive, which is appealing to majority of my clients.


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## wozzars (Apr 26, 2011)

So do we. this works fantastic and we haven't had to take anyone to court for non-payment since we introduced this.


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## Just Teesing (Dec 12, 2011)

We take 50% deposit on most order (only schools do we allow PO), because larger corps can pay within in one week when a bill is submitted.. And I they buy online, a credit card is required.


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## Ribcage (Nov 4, 2010)

+1 for 50% deposit and balance on delivery for all orders, 5% discount for prepaid orders. Even larger companies that expect 30 day terms seem to appreciate the 5% discount and are happy enough to prepay.


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## mimic (Nov 28, 2011)

same here. half down to cover materials and half upon completion.

i feel this covers both party's interest.


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## binki (Jul 16, 2006)

binki said:


> ...
> 
> Now some will say winning and collecting are two different things but those that say that don't know the law. Around these parts a winner in a lawsuit can file for a statement of assets and then have the court order a sale of property to collect the judgment and court costs.


This is so powerful you will never go without getting paid. You would be amazed at what happens when someone has to bring into court a statement of their net worth and all their assets; cash, real and tangible. They pony up pretty quick. If they don't show a bench warrent is issued for their arrest. Just walk park in front of their house when they are there and call the local police or sheriff and badger them to come out. 


One more thing. If a customer gives you a bad check they are responsible for treble damages (California, not sure about the rest of the USA.) So a $1000 bad check turns into $3000 and it is automatic (you do have to go to court though.)


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