When an account becomes 'overdue'

• If there is a problem with your workmanship or other matters at least you will know and (by law) you have the opportunity to put it right.

• If you don’t and ignore the problem technically, you don’t have a ‘bad debt’ anymore because it simply becomes impossible to undertake any recovery at all.

• Apart from commercial failures (bankruptcies) that occur from time to time the problem is full payment for your work rather than ‘bad debts’. Painting is a finishing trade and substrate problems have a nasty habit of translating into painter problems, that require considerable reworking, that leads to added expense (often disputed) and delays to payment.

• An additional difficulty is that there is a casual ‘best price’ bidding system and many quote, correctly to actually perform the painting systems, but without any regards to contract conditions and/or projected time frames.

• Any legal action you instigate for recovery of monies due takes time and trouble and money to carry out, so be absolutely sure:

  • The job you did was what the customer agreed to.

  • You have properly carried out your paperwork.

  • You are pursuing the correct person/ organisation.

  • You can reasonably expect the customer can pay (unlike debts surrounding chattels for example, you can’t exactly repossess paint or wallpaper!)

  • You are prepared to wait much longer than you ever believed possible.

In addition to prices each quotation should describe the preparations and painting systems and proposed materials.

Also include your terms of trade and particularly your payment requirements (sometimes of course these are prescribed in specifications you respond to).

Verify your liability insurances and health and safety protocols, clearly indicate any licences and qualifications held. While this may seem tedious and unnecessary with customers known to you it remains that occasionally things will go wrong and inclusions of all that is needed covers such contingencies. Also it is an excellent marketing strategy compared to casual responses.

Mostly inclusions of every type can be available as a ‘cut and paste’ basis.

Reducing your credit cycle is sensible.

Ask customers (in your quotation) for a deposit.

This, of course, eliminates tyre kickers, is also often seen favourably by customers because your services are secured and the payment for your work is spread out.

The painter’s benefits are the provision of immediate cash flow, the contract is secured and your contract terms confirmed legally.

Ensure your terms of trade are clearly stated – if you need weekly payments, state this requirement within your quotation.

Exceptions to this are when you respond to specifications (and contract conditions) offered by Architects, builders, property developers and managers etc., where the conditions of performance and payment etc are (or should be) stated.

Painters often may not be able to operate within some commercial markets simply because the funding requirements become too high due to retentions, guarantees and the longer payment terms (on average 70+ day credit cycle is typical).

Painters are in the credit business!