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LoneStarLawn
06-25-2001, 10:43 PM
Never faced this before but we have four late paying customers this past month. One is two-months behind (service is on hold) One complained that we could not cut a limb down when we arrived at the account for lawn maintenance (did not have equipment with us for tree work)

Besides all that I really need to send a letter to these four and really can't find the professional words to come out of my mouth (all curse words right now...:D LOL that is why im writing a letter):angry:
Does anyone have a sample letter for this kind of thing?...( I really don't know how often you all face this...kind of embarrassing that we are not able to deal with our customers better)
I would appreciate any help at this point...

kutnkru
06-25-2001, 10:53 PM
I dont know if you have a clause in your contracts about delinquent accounts but heres ours:

BILLING
Fees for services will be billed upon completion. Terms are: 2% 10 days/Net 30 days. If monthly re-billing is necessary, A FINANCE CHARGE of 1 ½% per month (18% per Annum) will be charged to all past due accounts. A Minimum Finance Charge of $5.00.

Any bill not receiving full payment within 45 days shall be considered delinquent. All services will be temporarily stopped on any delinquent account until FULL payment has been received.

If an account must be turned over to a Collection Agency, the client will be responsible for ALL costs involved in collection of said account.

LoneStarLawn
06-25-2001, 10:55 PM
These are non-contract accounts

Fantasy Lawns
06-25-2001, 11:02 PM
Our records show that we have not received payment for last month’s services. Payments should be received in our office by the 20th of the month. We send billing out around the 1st –5th of the month and feel this is ample time to get the payment out.

We do provide a consistent and reliable service and believe that prompt payment is the customer’s appreciation of that service. Timely payment is an important factor to our business, as it pertains to Cash Flow, which allows us to pay our state and federal requirements, provide payroll to our employees and conduct other operating expenses.

Our monthly billing program is much like a weekly paycheck, but only once a month!

If you have recently sent payment, please disregard this notice, otherwise please send last months payment as soon as possible, we hope to receive such payment before your next schedule service date.

If you have any questions please feel free to contact us personally at the office, so we might correct this issue, if we are not in leave a message and we will return your call as soon as possible.

GreenQuest Lawn
06-26-2001, 12:04 AM
I use the pre-formatted ones in quickbooks. Heres the three

This is the friendly one,


Dear ,

Just a friendly reminder that you have 1 overdue invoice(s), with an overdue balance of $200.00. If you have any questions about the amount you owe, please give us a call and we’ll be happy to discuss it. If you’ve already sent your payment, please disregard this reminder.

We appreciate your continuing business, and we look forward to hearing from you shortly.

Sincerely,



GreenQuest Lawn Care LLC

___________________________________________________________


The formal one


Dear ,

Although we have contacted you about the outstanding balance on your account, we still have not heard from you. You have an outstanding balance of $200.00. The following invoices are overdue:

Inv. No. Inv. Date Due Date Inv. Amount Balance
345 05/01/2001 05/31/2001 $200.00 $200.00


If you have already sent payment in full, we ask that you call and let us know. Otherwise, please call me to discuss what you plan to do to settle your account.

Thank you for your prompt attention to this matter.

Sincerely,



GreenQuest Lawn Care LLC
___________________________________________________________

And finally the harsh one

Dear ,

The following invoices are long overdue:

Inv. No. Inv. Date Due Date Inv. Amount Balance
345 05/01/2001 05/31/2001 $200.00 $200.00


Please contact us immediately regarding this situation.

Unless we hear from you in seven days, we will turn your account over to our collection agency. Obviously, this would have a detrimental effect on your credit rating.

We must hear from you soon or be forced to take action. Please send your payment in full or call us to discuss the matter.

Sincerely,



GreenQuest Lawn Care LLC

LoneStarLawn
06-26-2001, 04:52 PM
Thanks guys...those letters went out today. Luckily it ended up only three. Recieved one payment today.

Guido
06-26-2001, 05:37 PM
The format and order of the letters that Todd showed are great, but make sure you record when you sent which one so you can promptly send out #2 and #3 if neccesary.

Your best bet would be certified mail if you have to use #2 and # 3.

Just my opinion though!

SLS
06-26-2001, 05:53 PM
Here's a simple one that I made up. I print it up with my co. letterhead at the top and so far it has worked fine. :


Date:XX-XX-XX


Hello XXXXX,

Our records show that we have not received payment for lawn services rendered on ________. Please remit at your earliest convenience. If payment has been made please contact us at the telephone number given below so that we can determine why this payment has not been recorded.

Please send cash, personal check, or money order for the amount of $_____.

**Please make payable to: XXX Lawn Service**

Thanks again for your business and have a great day!

(My signature here)


I tell them to contact us even if payment has been made so they can't just blow it off..."Oh, I thought I had paid it and the bill said to disregard if I had done so...". This forces the customer to let you know something or just flat out lie to you. Most folks don't want to be caught in a lie and pay up promptly. :D

PEACE!

LoneStarLawn
06-26-2001, 06:08 PM
We do not take cash in the mail....wouldn't like the change rolling around in the envelope. I think the post office states not to send cash through the mail for safety.

SLS
06-26-2001, 07:04 PM
Change (coin) is not a problem for us as all billing is in rounded dollar amounts.

If some "late-payer" FINALLY sent you 3 crisp $20's in the mail you wouldn't send 'em back now would you? ;)

I don't care how they pay..as long as the moolah is good! :D

Cash in the mail is dangerous for the sender but we get cash from international bidders (especially Japan) on eBAY all the time...no problems yet...(fingers crossed).

Personally, I never SEND cash through the mail...but if it hits my mailbox I'll gladly accept it. :)

LoneStarLawn
06-26-2001, 07:10 PM
We can't round due to sales tax....

Of course I wouldn't send back cash, but Im not going to ask to send cash. If I did and somehow the cash disappeared do you think the customer is going to agree that I didn't recieved the cash. Id rather stick with checks through the mail.

SLS
06-26-2001, 07:15 PM
Why not round it?

If their bill is $50.63 round it to $51.00.

Someone has to pay for the envelope, paper, postage, and administrative costs. Might as well be the late paying customer.

If I have to hassle them to get my money and then they want to quibble over a few cents then they can take a hike.

SLS
06-26-2001, 07:21 PM
If they are smart they won't risk cash in the mail.

If I didn't receive a cash payment and then they accused me of stealing it..well....like I said above...they can take an even longer hike. :D

LoneStarLawn
06-26-2001, 07:38 PM
You made your point. I dont agree with your reasoning though. Thank you for the letter too.

LoneStarLawn
06-26-2001, 07:38 PM
Im still not going to allow it....

GreenQuest Lawn
06-27-2001, 12:00 AM
Yes I agree with the records. I always print two and stick one in their file. Then 5-7 days later if I have not heard from them The next one goes out. I have not had the need for the Harsh one yet. Also Quickbooks creates these letters in MS word so if I need to add anything to them I can easily.