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View Full Version : Late Fees..


esshaki
01-06-2006, 02:04 PM
Just wondering what other guys charge for a late fee. Im in michigan and i charge a $25.00 late fee, if the payment is not in my hands by the given date, was wondering if i am charging a high late fee. If everyone could share their late fee's that would be nice.

shiveslandcsaping
01-06-2006, 02:18 PM
I charge 10% compounded daily after due date. If its 10 days late I make double. I am sure there wont be to many late ones LOL.

work_it
01-06-2006, 02:38 PM
I only have a couple habitual late payers, but early last year (May) I had a situation where over half my accounts were 10 to 15 days late. It ended up costing me a couple hundred $$$ since I couldn't pay my bills on time. I charged every late account $25 and included a memo with my next months invoices. The memo clearly stated a change in my late fees which are now $25 if payment isn't received by due date, and $25 billed every 15th day after due date. After that I didn't have but a couple problems the rest of the year with customers paying late.

mtdman
01-06-2006, 02:53 PM
My late fee after the 15th is $10. However, I was told by a lawyer that you cannot charge late fees in Michigan legally until it is 30 days PAST DUE. Not just past the due date. I rarely have late payers, so I don't usually worry about it. And most of the time the people were gone and forgot to tell me, and I knock off the fee.

work_it
01-06-2006, 03:06 PM
Yea right...try to tell that to the gas, electric, phone, cable, credit card, and mortgage companies. I'm sure the list goes on, but the fact is that they don't wait 30 days. If that's the case then I would start billing one month in advance...which I've already considered doing.

tiedeman
01-06-2006, 03:26 PM
you know what Tom, I tried that late fee on customer before that was 26 days past due, and they tried the whole 30 day thing as well

crzymow
01-06-2006, 04:20 PM
most of my customers i dont have a problem with. I am thinking this year that the customers i have had problems with i will start charging them in advance, if they dont like it, they can find someone else.

work_it
01-06-2006, 04:25 PM
you know what Tom, I tried that late fee on customer before that was 26 days past due, and they tried the whole 30 day thing as well
One of my customers went past the 45 day mark after the notices went out. I had no problem billing them the extra $75. Sent the invoice in the form of a certified letter stating that they had 7 days to pay before meeting me in claims court. And yes, their service was cancelled...effective immediately.

dcondon
01-06-2006, 09:29 PM
In this area, all you would do is deal with late fees. People always pay but may be a little late. Not much money in these area, we just deal with it and move on.

Lawnmasters
01-06-2006, 09:40 PM
WOW ! $25.00 late fee? I can't think of many of my customer's who wouldnt call me up and tell me to not come to their place anymore. I charge like most of the trade accounts charge. The typical 2% of the balance or a minimum $5.00 Maybe I should give it a shot though, my customers are pretty good though, but a few are always late, I just think of them as my savings account. They pay eventually.

Roger
01-06-2006, 10:24 PM
For those who have late fee clauses on the invoice, AND the customer does not pay on time -- are they willing to pay the added amount for that invoice, or added to the next one? It is one thing to include such a clause, but quite another thing to collect it.

I look at my customers who provide a problem sometimes. My expectation with them if I included such a clause, and they paid late, they would just ignore the added fee. What do I do then ... keep adding it to future bills, again, only to be ignored? I have had some folks ignore the sales tax, and when called to their attention, "... I don't think we should be paying sales tax on grass cutting."

My point: If one includes such a clause, enforcement must follow in order to have any impact. I can see spending time attempting to deal with the added fee, and in the end not getting the fee anyway.

G.M.Landscaping
01-06-2006, 11:00 PM
Wouldn't it be nice to do what the credit card people do...$29 late fee plus your interest rate goes up.
So your $100 invoice is now 129, and each additional cut goes up five dollars.:)

mtdman
01-07-2006, 12:51 AM
For those who have late fee clauses on the invoice, AND the customer does not pay on time -- are they willing to pay the added amount for that invoice, or added to the next one? It is one thing to include such a clause, but quite another thing to collect it.

I look at my customers who provide a problem sometimes. My expectation with them if I included such a clause, and they paid late, they would just ignore the added fee. What do I do then ... keep adding it to future bills, again, only to be ignored? I have had some folks ignore the sales tax, and when called to their attention, "... I don't think we should be paying sales tax on grass cutting."

My point: If one includes such a clause, enforcement must follow in order to have any impact. I can see spending time attempting to deal with the added fee, and in the end not getting the fee anyway.
They pay the late fee to bring their account up to date. If they don't, their service is stopped and a deposit is required to restart. People who don't want to pay aren't the kind of customers you want anyway. Get rid of them, that's what I do. Ditto that to those who don't want to pay the sales tax.