Setting up your company

free distribution advice and tips,and jobs

What you charge for your services is totally up to you, what is important is that you remain competitive. How you charge is a different matter. it is normal to charge half up front and half at the end of the job.

The reason for this is that clients will often complain and refuse to pay if they are not happy with the results, even though it’s no fault of your own. Having half the money is a bit of a safety net in case things get ugly. Some companies also have a 30 day payment policy and large companies, local councils and other government bodies will expect to you wait up 30 before payment . This means taking on a large contract will often require you to have a cash flow available to take care your expenses before you are paid. This is not an everyday occurrence and most companies will pay your upfront fees if you ask them.

Chasing Late Payments

Another part of leaflet distribution is chasing late payments. Below are emails you can use to chase clients who are have not paid for a completed job.

Payment Reminder Email

Re. Invoice Numbers <000>

Dear <SIR/MADAM>,

Further to our letter dated <date> we am surprised to see that no payment has yet been received for the outstanding amount of <amount(s)>.

No doubt you will agree that it is in all our best interests to clear this account.

I look forward to receiving your payment immediately.

If you are unable to settle this debt in full please provide us with a proposal immediately.

Should payment not be forthcoming or we fail to agree alternative payment terms within 5 working days we will be obliged to put the matter in the hands of <our solicitors>.

Yours sincerely,

<Name>

<Title>

Final Payment Letter

Re. Invoice Numbers <000>

Dear <SIR/MADAM>,

Further to my letter dated [<Date>], to which I have received no [satisfactory] reply, I am writing to you to inform of my intentions.

If I do not receive your proposals for the satisfactory settlement of my outstanding claim within the next <number> days I shall have no alternative but to issue a summons against you in the County Court without further reference to you. Yours sincerely,

<Name>

<Title>

Payment demand letter (example)

Re: Non Payment of Invoices (No: XXXXX) (No: XXXX)

In Nov 08 & Dec 08 “ABC-Distributions ltd” distributed 4,000 (Nov) & 3,500 (Dec) Leaflets for your company as per your instructions

We sent you invoices and Feedback Map but have yet to receive payment.

Please Make Payment ASAP

We do not wish to take this matter further but will do so reluctantly if payment is not made in 10 working days

Payment can be made by BACS,

Bank: HSBC
Account Name: ABC-Distributions ltd
Account: XXXXXX
Sort Code: XX-XX-XX

Cheques are to be made payable to ABC-Distributions ltd

Pricing your Jobs for Maximum Profits.

Setting up your company

Chasing Late Payments