Bitch Better Have My Money
After speaking on #VexInTheCityLive yesterday on Instagram (thank you to all of those that tuned in!) I promised the Renegades that I would speak about invoices and an important act that many self employed businesses are not aware of!
BUT..
The reason that we even got onto this topic was I was speaking to Renegades about the importance of having several streams of income. I've spoken before during the #YearOfTheLavish when setting your financial goals the importance of not having just one revenue. It's imperative to save more than you spend (this is something that I'm still practising guys, please believe I'm not perfect at this!) and also to have a little hustle, especially something that you enjoy and you're good at. Some of the Renegades were speaking about braiding children's hair, to making logos, and cupcakes and I told them straight...you need to charge!
At the end of the day you are providing a service and you are taken time out of your day to do something for someone.
Now, obviously you use your intuition as to whom you choose to charge...I said in my Instagram Live that when it comes to my godchildren and my nieces I will happily do their hair every week and I don't charge..that's my duty as their aunty and godmother. But if it was anyone else...oh you gonna have to pay boo.
Additionally, when you do provide a service for people especially when you start out this may be your friends and family that you have a contract with them. Let me repeat that:
You must complete a signed contract for everyone that you collaborate in business with, even your friends and family.
I don't care if it your friend from Primary School, when you are dealing with business...you have a brand and reputation to protect. That's not to say that you believe they will do anything to tarnish it...but you are presenting them with a level of professionalism. And I know, that you Renegades do not play when it comes to their coins...just like me.
BUT....
What do you do when you've provided a service and they haven't paid for your service on time?
I find it hil-ar-io-us (yes I clapped through every syllable) that when it comes to paying for a service, people can do this BLINDLY, QUICKLY and EASILY for celebrities or major brands but when it comes to small businesses or friends/family...they come with a bag of excuses or a side eye. They tried it.
This is why it's important to set the tone and expectations from day one when it comes to your business. Furthermore for your livelihood. But it comes from gaining the knowledge and I didn't even know about this act until 2 weeks ago and had I known this, it would have saved myself a lot of stress, chasing people with emails and calls and nearly ruining my clean CRB because you're upsetting my ovaries with not giving me my money. I'm St. Lucian...we don't play with our l'argent (that's money in English) and so it's only right that I extend the knowledge to you all because I want us all to stay out of jail AMEN!
Late Payment of Commercial Debts 2002
This Act allows any businesses in the United Kingdom, Scotland, and Northern Ireland to charge interest and compensation for overdue payments/invoices/accounts.
This is broken into two parts: "statutory interest" and "compensation"
STATUTORY INTEREST is the right to charge interest to overdue payments relation to the the supply of a service or the sale of a good.
STATUTORY INTEREST can be charged:
30 DAYS after the supply was completed or the goods were supplied.
30 DAYS after the receipt of an invoice.
or the AGREED DATE of payment.
The STATUTORY INTEREST is currently 8% of what you are owed PLUS the Bank of England base rate of 0.5%.
You then add the STATUTORY INTEREST to a NEW INVOICE at the rate of how overdue the payment is.
Courtesy of gov.uk
In addition to the STATUTORY INTEREST you can claim COMPENSATION to the business for recovering the late payment.
The COMPENSATION depends on the amount that they owe you.
Courtesy of gov.uk
Please note this per invoice guys so the sooner the pay their late payment...the less STATUTORY INTEREST they will owe so it's in their best interest to pay it as soon as possible.
SO
Unless they want you to be acting like Rihanna out here, let them know that in 20 Cre-18 we don't play when it comes to our coins!