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MarkOlex
04-22-2008, 09:09 PM
Here is the situation. 65 days and no pay from a commercial client. Not returning phone calls. Has told me 3 times the check is in the mail; last time was the 10th of april. What would you do?

Pro-Scapes
04-22-2008, 09:15 PM
Pay a personal visit to have a check issued on the spot. If they are unable to issue a check on the spot I would ask if they would like to arrange a payment plan. If thats no good I would have my lawyer send a certified letter at 90 days.

INTEGRA Bespoke Lighting
04-22-2008, 09:20 PM
It all depends how much the invoice is worth to you. You could sell the receivable to a collections company, or you could lein the property, or you could issue a final demand payment letter, followed up by a small claims suit.

It really comes down to how much the invoice is worth and what it will cost you to recover the money.

daveyo
04-22-2008, 09:43 PM
I put them directly into collections, www.olddebts.com, its cheap and very effective, choose the option that puts there credit rating straight down. Second forget about small claims go to the township and file criminal charges for theft of services. Meanwhile let the client know what you are doing, tell them its not a threat its just your policy. 100% of the time I get my money, it may be a little bit less (very little) but they all pay.

Lite4
04-22-2008, 10:31 PM
You need to send a certified letter stating that you will lien the property if payment is not made within say 5 business days. Your envelope for liening property is 90 days from the date of completion. (at least it is in my state) If you lien his property he cannot sell a single unit or piece of it until he has satisfied the lien. That is unless he really hates you, but then he has to put up money in escrow for the value of the property which is usually a whole lot more expensive and complicated. 99% of the time they will just pay the bill. I have had to do this in the past. It's not personal, it's just business. You need to make sure you are covered.

Chris J
04-22-2008, 10:48 PM
Give him one last call and tell him of your intentions. Tell him he has 24 hours to return the call or you will act upon either of the above mentioned methods. If he calls, tell him you will pick up the check personally.

Lite4
04-22-2008, 11:18 PM
Tell him "cashiers" check please.

Chris J
04-22-2008, 11:20 PM
Tell him "cashiers" check please.

Yeah, that! Sorry I forgot to mention it.

INTEGRA Bespoke Lighting
04-22-2008, 11:35 PM
Cash, Money Orders and Certified Cheques work pretty well too!

INTEGRA Bespoke Lighting
04-22-2008, 11:39 PM
VISA, MC, and others

I just set up a merchant VISA account for my biz. Do others out there accept credit cards and if so, what do you do with the 1.75% to 3% fee that they charge? Do you add it to your invoices and then "cash discount" for those clients who choose to pay with a cheque?

I know that not everyone will opt to pay for their invoices with a credit card... but if they did it would cost me about $20K per year in transaction fees! I am all for convenience and giving the clients what they ask for, but that little transaction fee can sure add up.

Regards.

Chilehead
04-23-2008, 12:36 AM
Quit playing around with this guy!! Once a customer is 5 days late, they get a courtesy call. At 10 days they get a collection call. At 20 days they get a collection letter that says to pay by day 30, or litigation procedures will be executed. Let me tell you, some people need a fire lit under them! As for your commercial client--he should have been burned at the stake!

David Gretzmier
04-23-2008, 06:25 PM
From experience, I can tell you that some folks are very slow in paying thier bills. Also from experience, I can tell you that collection services, letters and phone calls are not the magic bullet. A personal face to face visit is the most time consuming and difficult, but the most effective. I wish you luck.

extlights
04-23-2008, 07:55 PM
VISA, MC, and others

I just set up a merchant VISA account for my biz. Do others out there accept credit cards and if so, what do you do with the 1.75% to 3% fee that they charge? Do you add it to your invoices and then "cash discount" for those clients who choose to pay with a cheque?

I know that not everyone will opt to pay for their invoices with a credit card... but if they did it would cost me about $20K per year in transaction fees! I am all for convenience and giving the clients what they ask for, but that little transaction fee can sure add up.

Regards.


We have all our overhead figured out when pricing a project and that overhead also includes finance and credit card fees. We will do a cash discount just as you stated. When it comes to financing the fee could be a bit higher depending on what option they choose, but again it's already figured into the pricing. If I remember correctly we would have payed somewhere in the 8K range for credit card fees last year....this is why it's important to automatically put this percentage into your overhead costs.

We've had a lot of people pay with creditcards.....they all want the miles! It's a good option to offer though.

Firefly Lighting
04-27-2008, 09:43 AM
Lein the property. If that does not work get a lawyer to foreclose on that lein.