news and information from Shed 5, the online logistics billboard for couriers and hauliers

27 July 2011

How to be a bad subby – five tips to avoid getting more work!

by Mike George

Do you want more time at home with your family? Want to watch more daytime television? Fed up with driving?

The answer is simple — just read this “courier bible for non-believers” to learn the five secrets to NOT getting more subby work!

1. don’t communicate!

Whatever you do, don’t communicate!

The aim is to keep the customer guessing, avoid making a commitment and keep your options open. Whatever you do, DO NOT do any of these:

  • confirm “GOB” (goods on board) when you have collected the consignment
  • tell the subber about any problems or delays
  • call in a “POD” (proof of delivery) when you have delivered the goods

And you should avoid answering your phone, but if you do answer don’t say who you are — a general-purpose “ug” is the best thing to say. You get extra points if you answer the phone while driving, but drop it on the floor and shout “I’ll call you back”.

2. don’t be too professional

Remember, nobody likes a smartass, so you need to keep a good layer of dirt on your van, wear scruffy clothes, call everybody “mate” or “squire”, and always swear in front of the customer.

If the inside of your van is clean and tidy it will look too professional, so always carry a few tools and some odd boxes. You won’t want to use blankets or straps for your loads, but it’s good to have a few scattered on the floor of the van.

And if you can pick up an ebay job to deliver some spare wheels that will add to overall image. You can always fit this kind of job in while you’re doing a “dedicated” delivery.

3. advertise yourself

You should take every opportunity to advertise yourself, and steal some customers if you can. The cheapest way to advertise is to carry cards and flyers with you and hand them out whenever you do a subby job.

Don’t worry that this will bring in too much work, the customers won’t be interested and the subber won’t give you any more subby work — result!

4. don’t waste time on paperwork

You didn’t become a courier to do paperwork, right? So don’t waste too much time on it — all these are good tips:

  • don’t write down any instructions for the job, the subber is just fussing and you can work it out as you go
  • don’t get a clear signature on PODs, and don’t ask for printed names
  • when you take the job, don’t ask for job numbers, names or purchase order numbers
  • when you send your invoice, don’t use invoice numbers and don’t include any job details on the invoice

5. have high expectations

You’ve got to aim high, so always demand top rates for subby work and demand payment in 7 days. Remember you have to get at least 45p per mile for backloads, and you’ll want extra for working on Fridays or weekends.

Find more work at Shed 5 logistics billboard for couriers and hauliers.
Reliable owner drivers wanted with vehicles from motorbikes to trucks.
Filed under: Articles,for new couriers
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Are courier guides any good?

by Mike George

I expect you’ve seen ads that say you can earn “£275 per trip” or “£350 per day” or “£35 per hour” as a courier driving your own car or van.

They are all scams and cons.

Most of these ads are for courier guides, books or manuals. If you fall for the spiel you will pay around £40 for a book which will tell you more lies.

The fact is that courier work is very competitive and it’s hard to make a good profit. You can sometimes take £300 in a day, but out of that you have to pay for your fuel, insurance, road tax, wear and tear, advertising, etc, so the profit you make will be a lot lower. And there will be plenty of days when you don’t get any work at all.

If you want to find out what the courier business is really like and how much money you can make, try these links:

the instant guide to being a courier

codforum FAQs

courier info

Find more work at Shed 5 logistics billboard for couriers and hauliers.
Reliable owner drivers wanted with vehicles from motorbikes to trucks.
Filed under: Articles,for new couriers
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10 January 2011

The instant guide to being a courier

by Mike George

Everything you need to know on one page!

This is the essential guide to getting started as a courier.

Everything on this page is based on my own experience and my opinions. Not everything will be right for you, but you can follow it to start with, then learn from other people and your own experience.

How the business works

This is how it works:

A customer calls a courier to get a load taken from A to B.
The courier will either do the job, or find another courier to do it for them at a lower rate — this is called ‘subbing’.
They agree a price and the subby does the job
The customer pays the first courier and eventually the courier pays the subby.
You should start off as a subby. You will be self–employed and drive your own van as an owner driver (OD).

When you have done this for a couple of months you will probably want to get your own customers, and maybe sub some work out to other ODs.

Before you start

These are some things you need to know before you start:

Don‘t call yourself ‘freelance’ because everybody will think you are an amateur.
There is no easy money in it — you will work hard and work long hours.
You have to do it full time and give it 100% commitment.
You will need a van, not a car.
You will not ‘make’ £250 a day — your income will be around £400–£700 a week when you are busy, but you will have to pay around £150 a week for fuel, your insurance will be around £20 a week, and your van at least £75 a week.
You will need £5,000 to £10,000 in the bank before you start, to cover all your costs for a few months. You will have to pay a lot of costs up front, but you won‘t ge paid for 6–10 weeks after you do the work.

Setting up

These are the things you need to do to set up on your own as an owner driver.

know what you are talking about

Read about the business and understand how it works, and what it all means.

Print a copy of the courier‘s glossary, join codforum and read all the topics.

make plans

Do some serious research and put together a simple business plan, including:

where your work is going to come from
what rates you will charge
what your income will be, and when
what your outgoings will be, and when
sort out your money
Set up a business bank account. The bank manager might want to see a business plan.

You don’t have to have an accountant but you might want one to take care of your accounts and records, wages and tax calculations etc.

If you are self-employed you have to tell the tax man within three months. You don’t have to register for VAT straight away, but it’s easier if you do.

get a van

Rent a plain white van from Norflex. Start with a small van like a Combo — you will be able to swap it for a different size later, and you won’t have to worry about servicing or breakdowns.

Make sure you know what weight and size of load your van will safely carry.

get insured

You will need van insurance, goods–in–transit insurance, and public liability insurance. You should be abe to pay monthly.

get some equipment

The basic equipment is:

PPE (personal protective equipment) — hi–viz vest, steel toe shoes, gloves, hard hat. You can buy them from places like Screwfix, workwear shops and tool shops.
Ratchet straps — to take at least twice your payload weight. You will need these to hold heavy loads in place, and to stop small loads sliding about
A mobile phone and hands–free kit.
Satnav — not essential, but cheaper than a set of maps, and easier to use, and also lets you work out mileages for quoting.
A computer with internet access and a reasonable quality printer.

get some business stationery

You will need some business cards and letterheads — don’t waste time with flyers to start with.

You will also need some delivery notes or ‘PODs’. You can print your own and use carbon paper for copies, or get a duplicate book, or get some carbonless ones printed.

You don’t need special invoices — print them on your ordinary letterheads.

start looking for work

The first thing to do is to visit all your local courier companies — don’t send letters, don’t call yourself freelance, and don’t ask to speak to the ‘collections controller’.

When you speak to couriers tell them:

what van you’ve got
what weight and size of load it will carry (how many standard pallets or Euro pallets)
what insurances you’ve got
when you are available — try to make it 24/7
Start with the small courier companies that have got a few vans and drivers of their own. Then try the OD businesses. Don’t bother with the ‘big boys’ like TNT or DHL.

When you have visited all the local couriers, try the ones further away — up to 40 minutes away. Then call the ones up to an hour away.

don’t fall for the scams!

Don’t join anything where you have to pay an up–front charge, or a weekly or monthly fee, to get work — they are mostly scams.

If you do want to sign up for something that looks OK, check on the forums first to see if anybody else is a member.

carry on networking

Now you are ready to go, join one of the courier sheds (like Shed 5 or Fetch it Now), and introduce yourself to the other members. These sites advertise available subby work, and you will be able to make some useful contacts on their forums.

Doing the job

Now that you are ready to go you will hopefully get some work — so how do you do it?

There is more information in the new subbies checklist but the basics are:

somebody asks you to quote for a job, you give them an ETA and a price
if they agree, they give you the collection address and you do the job
you call them when you’ve collected, and again on the journey if there are any problems
you deliver the goods and get a POD signed
you call in with the POD details, then you send them the POD

Getting paid

You can send your invoice with the POD, or weekly or monthly.

Expect to get paid a week or two after the end of the following month.

If payment doesn’t turn up, call them, send a statement, then send a letter, and call them in between as well.

Avoiding problems

Here are some ideas to help you avoid some common problems:

Try to work for at least 6 different couriers or customers — if you rely on one or two and they go bust, you will probably go down too.
Keep good records of your jobs, invoices, etc, including copies of all PODs in case the originals get lost in the post.
Keep on top of invoices — don’t let them go too long without payment, and don’t work for anybody who owes for more than one month’s worth.
Keep any promises you make, and don’t make promises you can’t keep.
Don’t over–commit yourself — for example, taking on too many part loads, giving an ETA for backloads.
Pay all your bills on time.

Find more work at Shed 5 logistics billboard for couriers and hauliers.
Reliable owner drivers wanted with vehicles from motorbikes to trucks.
Filed under: how to be a courier
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The courier’s research checklist

by Mike George

What is research?

Research is what you do to find out all the facts and figures you need for your planning, so that you can go into the business with a good idea of how it will work out.

Ask any established courier how you should start and they will tell you to start with research — but what? and how? and where will you find the information?

how long does it take?

Some people spend a couple of days looking into the business and others spend months doing detailed research and planning. It depends on how much detail you want to get, and how much of a risk you are willing to take.

For example, if you’ve got some money in the bank and you can afford to take a risk, you could just rent a van, get some insurance and ‘sub’ for a courier company to see if it works out. (But you still have to be committed — if companies think you’re just playing at it they won’t give you work.)

On the other hand, if you’re thinking of using your redundancy money to set up, and you need to be sure of a reasonable income, you’ll probably want to take a few months and get all the facts and figures before you take the plunge!

where to get the information

These are some of the places where you can find the information you need.

forums

There are some free forums on the internet, where you can pick up a lot of useful information before you start.

The courier owner driver forum (www.codforum.org.uk) is an independent forum for courier owner drivers and is friendly to new starters.
The Courier World forum (www.courierworld.co.uk) is another free forum which also has work listings.
Trucknet (trucknetuk.com) and the Professional Drivers Association forum (www.pda-uk.org) are both for truckers, but are good for learning more about the transport industry and life on the road.

other websites

Have a good look around the internet and you will find a lot of sites where you can get general information about transport and the courier business. Try a search on ‘courier work’, ‘courier sheds’, ‘transport’ and ‘logistics’ and see what you find. Here are some suggestions:

For information about all the different vans try the What Van? site (www.whatvan.co.uk).
Department for Transport
Vehicle and Operator Services Agency
HM Revenue & Customs (for information about VAT and other taxes)
The codforum links page also has lots of useful links for owner drivers.
books
There are several books and guides available online, most of which promise you can earn £250 or more a day! Don’t waste your money — there is plenty of free information available on the web.

couriers

Try ringing around your local couriers—both ODs and companies—and chat to them. They might be too busy to talk, but if you catch a friendly one in a talkative mood you’ll be able to get some good local information. It’s best to avoid Fridays — try Monday or Wednesday.

And remember when you’re talking to people that they might be busy, so try to stick to the important things and try to make it a friendly conversation, not a grilling — and don’t expect them to give away information about their own customers or finances.

suppliers

Suppliers are the people who will provide services to you — such as printers, accountants, banks, van hire companies, freight exchange sites, insurance companies etc.

Get some prices and quotes, find out what they offer and decide which ones you would want to do business with.

customers

Go out and speak to some local businesses that might become customers — find out whether they use couriers, how often, what kinds of loads, etc. If you can, find out how much they pay, and what is important to them — is it price? service? reliability?

Also, see for yourself — loiter on some industrial estates and business parks and look for vans going in and out.

personal contacts

Ask around among your friends and family — do their employers use couriers? Are they happy with the service and price they’re getting?

what to find out

When you do your research you will be looking for the information you need to fill in the gaps in your business plan.

So you should start working on your business plan when you start your research. Some key points to cover are:

costs
vehicle
equipment (phone, satnav, computer, etc)
stationery and advertising
insurances, subscriptions and fees
accountants
income
how much work there is, and what kind
what rates people will pay
other information
how many competitors there are locally, and what type
how many potential customers there are, and what types of courier service they use

how reliable is the information?

Generally speaking, if somebody takes the time to talk to you and answer your questions, they won’t deliberately give you bad information. On the other hand, it’s your future livelihood that’s at stake, so you have to be careful about accepting information at face value. So, what could be wrong with the information, and why?

optimism

It’s common for people to be a bit over-optimistic and paint a rosy picture of courier work, such as…

other couriers might exaggerate because they don’t want you to think they are doing badly, or you might catch them in a good month when business has been very good.
customers might exaggerate for the same reasons, or they might be expecting a lot of new business that doesn’t materialise.

lies

Sometimes people will tell deliberate lies, for example…

some books about courier work over–state the likely income, and how easy it is to get work, just to sell more books
a customer might lie about what prices they are paying, because they hope you are going to quote lower
a courier company might exaggerate the amount of work available, to encourage more ODs to sign up

misunderstandings

Another source of bad information is genuine misunderstanding, for example…

a customer might say they use couriers for ten loads a day, but they actually mean overnight or next day deliveries
someone in an office might tell you they don’t use couriers, but the post room or transport office will give you more reliable information.

what to do next

The next thing to do is to decide whether to carry on.

The information you have collected so far might make it obvious one way or the other, but you will probably need to do a simple business plan to be more sure about it.

Find more work at Shed 5 logistics billboard for couriers and hauliers.
Reliable owner drivers wanted with vehicles from motorbikes to trucks.
Filed under: courier business research,the courier business
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Technical courier work

by Mike George

“Are you going to plug it in?”
How many times have you delivered a new computer or component, and the customer has had to wait for an engineer to install it?

If you were a technical courier you would be able to do the whole job!

© Bruce Latto, 2006

Bruce Latto is The Ferryman, same day and technical courier based in Aberdeen.

What is a technical courier?

Every day, all around the country, couriers are delivering computer parts to offices, shops, and other commercial premises, and are often asked whether they will be installing them as well. Usually the answer is no, sorry, there will be an engineer along later. The next day the courier may well be back again to pick up the defective equipment and take it back for servicing.

In many cases, there is no other option, as quite a lot of technical expertise can be required to install and set up complex systems. What about simple replacements, though? All that is needed could be just swapping a monitor or printer, making sure the new one works, then taking away the old one, all in the same visit.

This is the work of the technical courier. These are men and women who carry out only “tech”, or “techy” work, or same day couriers, employed or self employed, who will take a normal delivery, or a tech job, as and when they come along.

could you do it?

How do you get into this kind of work, and do you need special skills or experience? Oddly enough the answer to the second question is usually no. With suitable training most of us could do it, at the basic level at least. A bit of experience is useful, confidence that you can do what is required will help, but the ability to ask for help when you need it is essential.

To achieve success in any business, you have to know that whatever question you are asked, the answer is always yes. Can you swap out a monitor, yes, can you change a pin pad on a supermarket checkout, yes!

does it pay?

Is it worth it, though? Well, you really need to get enough of it to make it pay. Individually, the jobs often don’t pay very well, but they may only take a few minutes, so if you are quick and efficient, it can be worthwhile, once you know what you are doing.

What does a technical courier do?

It may be helpful to have some idea of what sort of things you may be asked to do. Look at the computer on your desk in your office, or at home. You may be asked to replace anything which plugs into it, monitor, mouse, keyboard, printer, router, modem, etc.

Think of a point of sale system in a shop. Again, anything which plugs in can be replaced – pin pad, the little display unit which shows the item just scanned, till drawers, the receipt printer and the little monitor the operator uses.

At a more advanced level, some work may involve opening up the computer, usually to swap a hard drive. You are unlikely to be asked to do anything more technical, at least without some training.

technical courier or computer engineer?

So what is the difference between the technical courier and the computer engineer? They are still worlds apart, really. The tech guy is only replacing something known to be faulty, usually because it is a common fault and replacing the unit is usually the most cost effective thing to do initially. The engineer or technician is able to diagnose faults and carry out much more complex work on servers, networks, etc, although he will of course swap a keyboard if he finds that is why the system is not working.

Who uses technical couriers?

Several of the big computer suppliers offer installation services, which are usually contracted out to one of the national technical couriers, who in turn will sub-contract the work to a local tech courier.

Some of the large employers will install computers in their employees’ homes, either for business use, or as a staff purchase scheme. These are delivered by tech couriers, who take everything out of the box, connect it all up, fire it up, usually all the software is pre-installed, set up the dial up or broadband connection, and maybe provide some basic instruction in how to work it.

Getting into technical courier work

So, how do you expand your courier business to take in tech work? You do exactly the same as you do to find other courier work, just target different companies.

Look up the yellow pages and do a Google search, to find out which technical couriers have local depots. Ring them up, go in to see them , explain that you are looking to expand your services into this type of work locally, and will be happy to take anything they can offer you.

Once you have contacted the local ones, then try all the national companies who do not have a local depot. They will have work in your area and will have someone, often working from home, doing their work for them. The usual method is for a trunk or overnight service to drop off their parts in the morning, or the tech courier may pick them up from one of the depots of the national couriers.

Doing the job

When going off to a job there are some basic questions you can ask, which won’t make you sound too daft, such as do you have to get the user to power down the system before you replace the part, or can you just “hot swap” it.

Do they want you to change the cable, leads, etc, or just try the new part first, then change the cables if that doesn’t work. Sometimes the new part comes as a complete kit, including all fittings, but in many cases you don’t have to replace everything.

getting help

If it is something you haven’t done before, you can often get someone to talk you through it when you pick up the part, or there may be instructions in the box. For example, you have probably never serviced a photocopier before but when you do you will find instructions inside the box of parts, starting with how to remove the new drum from the box!

Then in the box there is a big sheet with pictures, which shows you exactly what to do. There is a diagram inside the door of the machine, which shows you where everything is, with coloured markings on the parts which need replacing. Finally, if all that wasn’t enough, the little display screen on the copier will show a fault if you haven’t seated the parts in properly!

Always be prepared to ask for help, including when you are on site, there is usually someone you can ring to talk you through a problem. Don’t swap a mouse or keyboard without powering down the system, unless they have usb connections, you can cause damage. If something has no screws visible, and no obvious means of getting a panel off, it usually just pulls off, but be careful!

give it the boot

The most useful tip for anyone working with computers is if something isn’t working, restart it. Whatever you are installing may have to picked up by the operating system before it will work. If restarting doesn’t work, power down the system, wait for thirty seconds, then switch on again. Remember, computers work by magic, so you sometimes need to know a few special words, like ***&* and $$%** to get them to work!

equipment

Carry a couple each of flat and Philips screwdrivers and a knife (for opening the cartons!) For most jobs that is all you will need, although occasionally a hammer is tempting!

satisfaction

Finally, job satisfaction plays a big part in this. All couriers have known the delight of customers when they are handed whatever it is they have been waiting for to get on with their lives and their businesses.

Tech work means more of this, the smile of the shopkeeper who can process phone cards again, the relief of the garage owner who can print test certificates again, and delight of the kids when you ask them to stick in a CD to test the surround speakers which came with the new family super duper computer system.

Technical courier work – try it, I think you’ll like it.

© Bruce Latto, 2006

Bruce Latto is The Ferryman, same day and technical courier based in Aberdeen.

Find more work at Shed 5 logistics billboard for couriers and hauliers.
Reliable owner drivers wanted with vehicles from motorbikes to trucks.
Filed under: for new couriers,the courier business
Tags: ,  , 

A beginner’s guide to logistics billboards and exchanges

by Mike George

Is it worth it?

One of the most frequent questions asked by new couriers is “Is it worth joining a logistics billboard site?”

This guide will explain what logistics billboards are, how they work, and how to use them successfully — so you can make up your own mind about them.

What is a logistics billboard?

A logistics billboard is a web site where couriers and hauliers can buy and sell work, advertise services and network with other members.

Members with excess work advertise it, and other members bid for the work. Most sites will send you alerts when loads are posted.

They usually also have forums or ‘chat’ pages, help pages, FAQs and other information for members.

For small courier businesses a billboard site is a way to serve customers all over the country by subbing work out. And for owner-drivers without their own customers it is a way to find more work, especially backloads for empty vehicles on return journeys.

The forums and member lists are good for networking — getting to know other couriers around the country to build business relationships with them.

How to choose one

Everybody has their favourite, but there isn’t one that’s better than all the others.

The one with the most work is not necessarily best for you.

You can find out more about the different logistics billboards by looking on the forums, such as codforum (but search before you ask!).

Here are some of the things you should think about…

how much work?

The obvious question is, how much work is posted on the site? This is important — but it’s not everything.

alerts

With some billboard sites you have to visit the site to see if there is any work in your area, but most will send you alerts to tell you about new work.

Some sites send email alerts — either one for each load or combined, with several jobs on each email.

Other sites send text alerts (SMS) to your mobile phone, so you get the information straight away without waiting for emails.

price

There are some free sites, and cost for others ranges from £36 for life to about £1,000 a year, plus the cost of text alerts.

Some have a staffed office and offer telephone support, others have email support, and some have no support at all. You should find out what’s on offer and decide what you are prepared to pay for.

trade or retail?

Some billboard sites are trade only, but others are open to ‘retail’ — end users can place load details on the site and get bids from members.

How to use one

If you register with a site and just wait for alerts to be sent to you, you will probably find you have wasted your money. Even with the busiest and best of sites there are a few simple things you can do to get the best value from it…

fill in all your details

The first thing to do is fill in all your details on your account or ‘profile’. Other members will look at this information when they are looking for subbies.

send in your insurance documents

Most sites will want to see a copy of your insurance, and it gives other members confidence that you are serious about your business.

set up your alerts

On most sites you have to set up your account so you get the right alerts — choose the area you want alerts for, and what size vehicle you want them for.

post your empty vehicle

There will be some way to tell other members you are available and looking for work — this might be called a ‘return journeys’ page, or ‘vehicles available’ or something similar.

You might get a call from other members perhaps one time out of every hundred. But every call you get is a new business relationship started, and could lead to lots more work in the future.

And some sites will send you alerts for any new loads that are posted in the area you are available.

use the forum

Every site has some kind of forum or ‘chat’ page, for members to talk to each other. Some people never use these, and they can get a bit political and even petty.

But you should post a new topic to say hello to other members. Tell them who you are and where you are, what van you’ve got, and any other relevant information — such as previous experience.

And join in with other topics if you’ve got something to say, so other members get to know you and will remember your name.

use the directory

The site will have a member list or ‘directory’ where you can look up other members.

Use this list to find members in your area, or other parts of the country you are interested in, and get in touch with them. Tell them you got their details from the site, and let them know you are available.

and remember — it’s good, but you can’t live on it

You should never rely on a logistics billboard site to keep you busy. Get out and get your own customers, or network with other couriers in your area, and treat any work you get from the site as a bonus.

Find more work at Shed 5 logistics billboard for couriers and hauliers.
Reliable owner drivers wanted with vehicles from motorbikes to trucks.
Filed under: for new couriers,online logistics billboards
Tags: ,  , 

21 June 2010

How to get paid and avoid bad debt

by Mike George

Why don’t they pay on time?

So you got some work as a subby and business is looking good, but why is it always a struggle to get paid?

There will always be bad payers, but there are things you can do to make it easier to get paid on time, so read on …

Before you start …

Before you even set up in business as a courier, there are things you can do to reduce the problem of bad debts. If you plan your business properly before you start, and take control of your finances, life will be a lot easier.

remember you’re a business!

This one is obvious, but can be easy to forget — as a subby you will provide a business service to other couriers, so they will be your customers not your employers.

That means you should expect to get paid on normal business-to-business terms, and using normal business procedures like invoices and statements.

learn about credit control

Before you go into business for yourself you should learn how credit control works, how to lay out an invoice and what a statement looks like.

have a credit policy

How much will you allow each of your customers to owe you, and for how long?

This will tell you what credit limits to set, and when you should get credit references, and what payment terms to set.

Your business plan and cashflow projections will help you answer these questions.

expect the worst!

When you write your business plan, make an allowance for bad debt. Five percent is probably about right.

spread the risk

You should spread your business over at least six different customers, so if one doesn’t pay you can still survive.

Before you do the job…

Before you take on a job as a subby, these are the things you can do to help improve your chances of getting paid on time:

agree terms

Be clear about the payment terms for the job. If you agree terms like ‘30 days’ is that 30 days from when you do the job, or when you send the POD, or the invoice, or from the end of the month?

know who you are dealing with

Get a full business name, address and contact name and number. This will make sure you send the invoice to the right place, and make it easier to chase up payment if you need to.

get full job details

Try to get a job number, consignment note number or other reference for the job, so you can put them on the invoice and make it easier for them to pay you.

If you are dealing with a one-person business they might not use job numbers.

After the job…

After you have delivered the load, these are the things that will help make sure you get paid with no problems:

the POD

The subber will tell you how they want the delivery confirmed, usually by text or phone call (remember they are your customer, so they are always right!).

But that is just the first step, and the usual rule is — “no POD, no pay” so you will usually have to send a hard-copy POD by post.

If you don’t send the hard-copy POD they will not get payment from their customer so they won’t be able to pay you.

the invoice

Send an invoice which includes your invoice number and date, with full details of each job — dates, places and reference numbers.

Also include your payment terms as agreed, with the expected date of payment. And don’t forget to include your business name and who the cheque should be payable to, or your bank account details if you are expecting payment by BACS.

Before payment is due…

You should now expect to wait anything up to 2 months for payment, depending on what terms you agreed. But don’t just file your copy of the invoice and forget about it.

watch the credit limit

When you start getting a few jobs from one customer it’s easy to ignore the risks and let their debt build up.

Keep an eye on how much they owe you, and if it gets close to the credit limit you have set for them you should:

  1. politely decline any further work until you have received some payment from you early invoices, or
  2. ask for a couple of credit references from their other suppliers (as long as your credit limit is reasonable and you are professional about it they won’t mind — it is normal business practice), or
  3. you can pay for a credit reference from a specialist agency like Direct Route or Experian

give them a call

If it’s the first job you have done for this courier, give them a call a few days after you sent the invoice.

This will keep your name fresh in their mind in case any other work comes up, and you will be sure you have sent the invoice to the right place and they got it.

Reasons for not getting paid

Most couriers are honest and are not trying to cheat you. The most common reasons for not getting paid are:

  1. misunderstandings about payment terms
  2. the subby didn’t send a hard-copy POD
  3. the subby didn’t send an invoice
  4. the invoice doesn’t show all the information about the jobs
  5. the invoice doesn’t show the subby’s correct business name and address, or payment details
  6. the subber is disorganised and hasn’t got around to paying yet
  7. the subber has a cash flow problem and is dragging it out

Those are the easiest problems to put right, and you will get your money eventually. Some other more serious reasons are:

  1. the subber is dishonest and is deliberately dragging out payment for as long as possible
  2. the subber is dishonest and has no intention of paying the subby
  3. the subber has a serious cash flow problem or financial difficulties and is going bust

When payment is overdue…

Here are some things you can do if your payment is overdue:

  1. double check that it is really overdue — check the dates against the agreed terms
  2. check whether it has been paid — check your record of cheques received, and check your bank account to see if it has been paid by BACS
  3. give them a friendly phone call — this will sort out most payment problems (you will need to tell them the date you sent the invoice, your invoice number, and the reference numbers of the jobs)
  4. send a statement listing all outstanding invoices, with a polite letter requesting payment
  5. put them ‘on stop’ and tell them you have done it — this means you will not do any more work for them until they make payments to bring them back under their credit limit
  6. send a letter asking for payment within seven days or you will apply a late payment charge and put their debt in the hands of a collection agency
  7. give it to a debt collection agency

What NOT to do…

It can be very frustrating when somebody owes you money, and you might be tempted to take drastic action, but it is not a good idea. Here are some things you should definitely not do:

  1. harrass or threaten them — you will probably end up getting arrested
  2. ‘name and shame’ them on a forum — you should not do this because:
    • it doesn’t work
    • you could be banned from the forum
    • you could be sued
    • if you get your facts wrong you will look like an idiot
    • even if you are in the right, it is very unprofessional and other couriers will avoid you
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