Invoicing early (to get paid early

Apr 15, 2008 2 Replies

Hi All



I've just started at a new firm. We have a supplier who provides monthly IT support. Per the contract it stated "billing: monthly in advance" and no mention of credit terms - on invoices it says 30 days. I believe the quality of their work is not to the agreed standard. This will take further investigation which I don't have time for at the moment.



I've had their snotty credit controller on wanting money (We've already given them a number of annual contracts where we have paid up front for the year - we have been using them 6 months). I feel a bit annoyed that they are wanting money before doing the job - and then not doing the job well.



So for the month of April support - they invoiced on 1 March and were chasing for payment 31 March.



I stated that they had back-dated their invoice date and that the contract stated that "billing: monthly in advance" means a month in advance of the service being provided - as the service is provide during April its one month before 30 April - being 31 March paid by 30 April. She said no, its monthly in advance of commencement - but it doesn't say that in the contract.



This may sound nit-picky - as we have the money - but I don't really want to pay them till the end of the month when the work has been done. She also hinted that they may stop the service if we don't pay.



Do people think that "Billing: Monthly in advance" with no mention of credit terms means that we must pay by 31 March - or can I say no, the invoice should be dated 31 March not 1 March I'll pay you at the end of April.



Many thanks :-)


In message , " snipped-for-privacy@googlemail.com" writes

As you are not happy with their work or their billing arrangements it would be best if you just let them go asap and found someone else but it looks like you have no choice but to continue for the next six months or so in respect of the annual contracts that were paid up front unless you want to write that off. It just shows the folly of falling for such an arrangement.

As for billing monthly in advance that can mean whatever people choose as it is loose enough to be correct with billing on the first, the last or any other day during the month before the work is due. As the annual contracts were paid in advance it sounds like that is their normal mode of operation so it would be difficult to argue against paying early especially if the previous bills have been settled on that basis.

I have never paid for IT support in advance although it is not unheard of and I can understand them wanting the money as soon as possible to ease their cash flow position. It should be acceptable for them to bill on the first of the month with payment on the last day of month after all most companies don't bill until the end of the month in which the work has been done and then give 30 days but as they have been paid in advance for several months they understandably think they can get away with the same thing going forward. You can express your displeasure and see whether they are willing to change especially if they can see the contract ending if they don't accommodate you but it doesn't sound as if you will get far without some leverage unless of course you just sit on the bill and let them walk away. It really depends how strongly you feel about it and how far short of standard you think their work is falling.

Further investigation? You say to them I don't think you did a good job because .... and see what their response is. You have a problem with IT support and you don't have time to deal with it?

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