Late Paying Regular Customers??

[Jaime]

I have some contracts that I do on a weekly and semi-weekly basis. The problem is that they wait 30 to 90 days to pay me. MY terms are net 10 days. I can charge interest only after 30 days though. I was thinking about charging a flat fee like $10.00 to $20.00 any time after the 10 days. However, I don't want to burn any bridges!! No What I mean. The prospect of money is better than no money. I am not a weekend warrior and depend on this money. I have been in business for about nine years and am getting further in debt because people don't pay. Hope you can help!! That's Jaime

 

[JR Wood]

My terms are "payment due within 15 days of billing date".This doesn't seem to matter to some people they think for some reason you are a credit card company and afford them a grace period.I receive several payments for gutter cleaning in February two months later.I have a 1.5 % penalty( which a lot of people simply ignore and refuse to pay)After 45 days I send a letter that say's ,"my records indicate that payment has not been received for the work done on so and so a date,if there is a problem please call my office as soon as possible so we can resolve it promptly,if not can you please send your payment today. this letter seems to work 95% of the time.I have not had to go to court yet.

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<FONT size="1"><FONT COLOR="Black">J.R WOOD POWER WASHING*1-800-782-9919
ABACUS DECK CARE*1-866-7-ABACUS
J&B SNOW PLOW*1-973-328-6650
SHOWCASE LAWNS OF NEW JERSEY*1-866-SHOCASE</FONT s></FONT c>

<FONT size="2"><FONT COLOR="red">
DID SOMEONE SAY DIVERSIFY?</FONT s></FONT c>

[This message has been edited by JR Wood (edited March 08, 2001).]

[This message has been edited by JR Wood (edited March 08, 2001).]

 

[David Saulque]

I use Easy Route Program and it has a great feature, it print past due bills based on the number of days you select. For example you tell the program to run you work bills for the day, it will print any past due based on a time line for the last time that account had been sent a bill.

If a selected account catch my eye I throw a $25 late charge, and 9 out of ten times that account will send the money but not including the $25. That is fine I got paid the amount due.

David

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[Ron Musgraves]

my net ranges between the cash to 30. If the account is slow oh well. If they are past 60 or 90 I get a little more aggressive.


Automatically my accounting sends notice to everyone that’s late every 15 days. Anyone, who’s late, even if they got a notice 15 days ago.

Anyone who’s late and ignores the notice and is over 90 gets a certified letter.

letter # 1 0 To 30 day past due.

_______________________________________________________________________________

Wednesday January 24, 2001

Please be advised your account is __________ DAYS PAST DUE.

Enclosed are copies of your delinquent invoices.

To avoid late charges your account must be brought up to date immediately.

If you have any questions regarding your billing please feel free to contact me at (602) 694-2680

Thank You,


Ron Marshal


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Ron Marshal Phoenix AZ
1-888-fleetwash

[This message has been edited by Ron Marshal (edited March 08, 2001).]

 

[tzahlman]

I also have a fleet account with net 15 and am lucky to see anything for 30-50 days. are their any laws than govern charging late fees or interest to past due invoices? Thanks Tom

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