A large order from a well-known company feels like a milestone. Then the invoice sits for ninety days and nobody can tell you why.
It is almost never a dispute. It is a process you were never shown.
The steps that exist inside their business
A purchase order is raised. Goods or services are received and someone records that. The invoice must match the PO. Somebody approves it. Then it enters a payment run that happens on fixed dates.
Your invoice can be stuck at any one of those and nobody will call to tell you.
What to fix before you invoice
- Get the PO number and put it on the invoice. No PO number usually means automatic rejection, silently.
- Match the wording. If the PO says one thing and your invoice says another, it will not clear the match.
- Find out who receives invoices. Almost never the person you deal with. Ask for the accounts payable email specifically.
- Ask when the payment run is. Most large companies pay on set days. Missing the cut-off by a day costs you two weeks.
Chase the right thing
Do not ask "when will we be paid". Ask "has the invoice been approved, and which run is it in". The second question can be answered by the person you are speaking to. The first cannot, so you get a vague reply and no progress.
Price it in
If a customer pays in ninety days, that is a cost. Either the price reflects it or the terms do. Taking a large order at your normal rate and then funding it for three months is a decision, and it should be one you made on purpose.
Leave a Comment