How much % is acceptable for late fee

[Lawn-Sharks]

I have never charged a late fee but with the way fuel prices & business expensives are headed my business needs to be paid on time. I have informed all of my new customers when they sign a contract for my services that i bill on the 15th of each month and that they have till the 4th of the following month to pay otherwise i will have to enforce a late fee, i have had no problems with exsisting customers but i have had almost all of my new ones late their first month. I was woundering what people in here think is a fair % to charge for a late fee or should i charge a flat rate??? any positive imput will be helpful Thank you!:usflag:

[k911lowe]

good luck,i have never been paid a late fee.tried it when i started but didn't get it and lost the customer.just be happy they pay you.my opinion of course.

[SilkKnitter]

I have never charged a late fee but with the way fuel prices & business expensives are headed my business needs to be paid on time. I have informed all of my new customers when they sign a contract for my services that i bill on the 15th of each month and that they have till the 4th of the following month to pay otherwise i will have to enforce a late fee, i have had no problems with exsisting customers but i have had almost all of my new ones late their first month. I was woundering what people in here think is a fair % to charge for a late fee or should i charge a flat rate??? any positive imput will be helpful Thank you!:usflag:

What exactly does your contract state? By giving people a 2.5 week grace period is just stupid btw. when it comes to the late fee always remeber that you are not a credit card company. do not charge like you are. I would say about 5% for the late fee, but, if you want to be a d*ck you can always charge something like $5 per day or something like that. You NEED to put the late fee charges in your contracts!! one said contracts are signed then you have a leg to stand on. Remeber you are a business not just the guy that cuts grass. These people wanted a pro, that is you. If you need help just PM.

[ICS]

We charge a $25 admin late fee, no problems over the last year since we started.

[kleankutslawn]

you have to be careful with late fees,in my state you can't charge whatever you want

[Lawn-Sharks]

What exactly does your contract state? By giving people a 2.5 week grace period is just stupid btw. when it comes to the late fee always remeber that you are not a credit card company. do not charge like you are. I would say about 5% for the late fee, but, if you want to be a d*ck you can always charge something like $5 per day or something like that. You NEED to put the late fee charges in your contracts!! one said contracts are signed then you have a leg to stand on. Remeber you are a business not just the guy that cuts grass. These people wanted a pro, that is you. If you need help just PM.

First of all a grace period is the time you have after the bill is due! i bill on the 15th of that month for that month which means im billing them before the work is complete (not stupid)and yes i give them an additional 4days to pay, but not only do credit cards companies charge late fees, i get charged late fees if i dont bring movies back on time or if i pay my gl insurance late or my electric bill & my water bill & my gas bill & my cable bill Ect. The world seems to revovle around late fees so whats a better reason why we cant charge them other then im just being a D*CK??? The reason i asked is my contract states their would be a 3% late fee added to any late payments recieved after the due date and i wanted to get peoples imput on a % rate with out having to give away to much info. (you know checking to see if im being fair about my % rate) But thank you for your useless imput.

[Lawn-Sharks]

you have to be careful with late fees,in my state you can't charge whatever you want

Were in the same state. Besides i have never to this day ever charged a late fee to anyone, I just fee that if i did maybe they would motivate them to pay ontime. Its just a thought that has never been an action.

[crazyman]

I charge 10% of balance for late fee they pay it when they are late

[BCFLawnLandscape]

by law if you bill 30 days of service they have 30 days to pay you. I charge a 10 admin late fee plus 1.5% on all invoices over 30 days late

[DiyDave]

You need to check the maximum interest rate that your state allows you to charge. If you charge over that rate, and the case goes to court, you will collect 0 % interest! Judges don't take kindly to those who charge Usurious rates.

[Brianslawn]

we dont charge late fees. we dont get paid late. we get paid for everything we do. but then again we know how to run a business

[Frontier-Lawn]

heres what i charge and i never had anyone go into the 2nd time late
Late Fee for not paying old invoice before the due date.
1st Time Late $15.00
2nd Time Late $20.00
3rd & Later Times Late $30 + 4% Interest on Balance Due

[shane mapes]

we dont charge late fees. we dont get paid late. we get paid for everything we do. but then again we know how to run a business

so your telling me you have never had a customer pay late or forget to pay . you are full of sh** . we bill out @ the end of the month for that month and payment is do by the 10th. of next month. if payment is not recieved by the 15th. of the month then we charge 10 % unless the customers calls us and has a good reason. but we only have a few each month that do this. just remember when the one-year contract is over charge them a little more then you would to make up the difference..

[Brianslawn]

so your telling me you have never had a customer pay late or forget to pay . you are full of sh** . we bill out @ the end of the month for that month and payment is do by the 10th. of next month. if payment is not recieved by the 15th. of the month then we charge 10 % unless the customers calls us and has a good reason. but we only have a few each month that do this. just remember when the one-year contract is over charge them a little more then you would to make up the difference..

we used to. then we decided we werent going to deal with those people anymore and changed our billing system.

[DutrowLLC]

we used to. then we decided we werent going to deal with those people anymore and changed our billing system.

So what is your billing system now? Do you only work with select customers or do you charge credit cards, etc...?

[Brianslawn]

just like buying somethin off the internet. they charge the card before they ship and so do we. same thing at the gas station... pay before you pump. that plus we do select our customers somewhat. not everyone that calls and wants to be a customer is accepted.

[supercuts]

Were in the same state.

you write ( NOT STUPID ) and then write this in your next thread. were should be used like this, were you going to cut that for me? what you wanted was , We're, meaning we are in the same state. hence you should not write not stupid

as for your fee, my net is 15 days with a 15 day grace period. they $25 late processing fee is applied.

[Lawn-Sharks]

you write ( NOT STUPID ) and then write this in your next thread. were should be used like this, were you going to cut that for me? what you wanted was , We're, meaning we are in the same state. hence you should not write not stupid

as for your fee, my net is 15 days with a 15 day grace period. they $25 late processing fee is applied.

Yeah (not stupid) i was referring to how i do my billing not the simple grammar mistakes i make! (but if you had read the posts correctly you would have understood what i was talking about) But seeing how you like to point things out. Where you wrote; "were should be used like this, were you going to cut that for me?" you should have wrote ( were it should be used like this,) so you feel better for sticking me with your grammar jabs, it sucks when you point out other peoples mistakes while your making your own. Thanks for your help Teacher!

[Lawn-Sharks]

You need to check the maximum interest rate that your state allows you to charge. If you charge over that rate, and the case goes to court, you will collect 0 % interest! Judges don't take kindly to those who charge Usurious rates.

I was asking in this thread how much % percent of the bill would be considered a fair amount to charge for a late fee not how much interest i was wanting to charge. Thanks for the reply though.

[DiyDave]

The reason I posted what I posted is the simple fact that some judges consider late fees to be in effect usurious interest. You can charge a late fee, but a good idea would be to have it written on the bill or in your contract, that way the customer can't say that he didn't know about it to the judge.:dizzy:

[Lawn-Sharks]

The reason I posted what I posted is the simple fact that some judges consider late fees to be in effect usurious interest. You can charge a late fee, but a good idea would be to have it written on the bill or in your contract, that way the customer can't say that he didn't know about it to the judge.:dizzy:

I wasn't trying to rub you the wrong way, i have a 3% late fee stated in all contracts. I was just trying to get input from others thanks!

[georgiagrass]

We bill monthly for services rendered in the previous month. We add a $15 late fee if the customer has not paid the balance before the next monthly invoice goes out.

[sweetz]

good luck,i have never been paid a late fee.tried it when i started but didn't get it and lost the customer.just be happy they pay you.my opinion of course.

I totally agree!

[jimithing31]

by law if you bill 30 days of service they have 30 days to pay you. I charge a 10 admin late fee plus 1.5% on all invoices over 30 days late

What law?? And where is this a law??
Nearly everything that is billed, is based on 30 days. So I can pay my Mortgage, credit cards, phone bill, utilities, insurance, etc. 30 days late and not recieve a Late Charge??? I think not... :laugh:

[Brianslawn]

What law?? And where is this a law??
Nearly everything that is billed, is based on 30 days. So I can pay my Mortgage, credit cards, phone bill, utilities, insurance, etc. 30 days late and not recieve a Late Charge??? I think not... :laugh:



those are REAL businesses. lawnboys arent.

[Island LawnScapes]

I started assessing late fee after a 30% plus delinquency rate for May, completely unacceptable. So I added an addendum to my billing invoices that states that if payment has not been received by close of business on the due date a $15. late fee would be assessed. Since the implementation of this policy I have had only three late payments in the past two months. I know that just about every business that I deal with has a fee for delinquency, so why not LCO's.

[cod8825]

OK here is my question since this is my first year of business. Where did all of you go to find out what your state allows for late fee charges I am in business with a lot of customers in Kansas not paying but have my business in MO

Matt

[DiyDave]

You could probably do a google search for it and find it easily, or go to your state attorney general's office with the question.:waving:

[lawnman_scott]

What law?? And where is this a law??
Nearly everything that is billed, is based on 30 days. So I can pay my Mortgage, credit cards, phone bill, utilities, insurance, etc. 30 days late and not recieve a Late Charge??? I think not... :laugh:Not a single thing you mentioned is a service. And the guy who brought it up was in ohio I think. Does anyone understand the concept of a state law?

[TXNSLighting]

I have never charged a late fee but with the way fuel prices & business expensives are headed my business needs to be paid on time. I have informed all of my new customers when they sign a contract for my services that i bill on the 15th of each month and that they have till the 4th of the following month to pay otherwise i will have to enforce a late fee, i have had no problems with exsisting customers but i have had almost all of my new ones late their first month. I was woundering what people in here think is a fair % to charge for a late fee or should i charge a flat rate??? any positive imput will be helpful Thank you!:usflag:

$10 for every week after 2 weeks theyre late.

[tradeyouraccounts]

10% on all late charges and all future payments need to be done by the 2nd week of the month or service is suspended until account is paid in full. I have heard this was applied on some late payers and it brought them into line.

[mngrassguy]

My invoices state: There is a $25.00/month late fee on all outstanding invoices. Period. I bill on the first of the month for that month. Service stops after 30 days overdue. I've had very few late invoices. Ever.

[Ramairfreak98ss]

What exactly does your contract state? By giving people a 2.5 week grace period is just stupid btw. when it comes to the late fee always remeber that you are not a credit card company. do not charge like you are. I would say about 5% for the late fee, but, if you want to be a d*ck you can always charge something like $5 per day or something like that. You NEED to put the late fee charges in your contracts!! one said contracts are signed then you have a leg to stand on. Remeber you are a business not just the guy that cuts grass. These people wanted a pro, that is you. If you need help just PM.

Yeah, we charge a $10 late fee under $250, mainly for lawn contracts, stuff like that AND interest at 15.99% apr, which is less than 1.5% monthly, but anyway, thats usually what courts will award anyway, weather you have it in there or not.

I usually DONT hit people with $10 late fees, like im at my computer WAITING till the clock strikes midnight to tack it on. Now if people end up being SO late that i have to cut a new invoice for the same freking work, yeah theyre getting the crap coming to them. Ive had people complain before too, but 9 times out of 10, the reason they hadn't paid wasnt because they forgot and were honest, theyre trying to weasel out of paying the bill in total. When they are late and you call them up or email them, they fckin play dumb, they act like they didnt know the work was done, complain about something from 14-30 days prior or longer! Ive had it with the deadbeats, if theyre honest you can usually tell. Some people say oh im sorry, i can send it right out. and thats fine and we will wait. Play games and theyll be charged for everything.

We charge $20 late fee under $500 and well we dont have anything listed for more than that, but charge the $20 plus interest and thats usually a nice chunk after having to wait longer for them to pay say a $1-2k invoice.

[Ramairfreak98ss]

Were in the same state. Besides i have never to this day ever charged a late fee to anyone, I just fee that if i did maybe they would motivate them to pay ontime. Its just a thought that has never been an action.
lol sharks, customers will eat you alive if you ever have to go to court when someone DOES end up not paying a bill for you. The judge will ask, how much is the invoice, when was the date it was done/invoice date etc. What are your terms, at the bottom, 3% monthly 5% monthly 1.5% monthly whatever, and late fee charge ? $5? $10?

Dont think your hurting anyone else but yourself, we've all been there and done that starting with people paying cash while we push our little dinky push mowers on their property without terms, contracts or insurance. You should have ALL of this information on your invoice. Have you EVER seen a big companies invoice for services/goods that didnt have these terms?

If you just bought a 8k zero turn, you'd pay say $223 a month. If customers X,Y, Z choose not to pay, and you have to WAIT for their dumb A$$s to pay a month late, do you think your zero turn mower company payment cares? You now have to use your own money or be forced to pay high/er interest on a credit card or term loan.

[Lawn-Sharks]

lol sharks, customers will eat you alive if you ever have to go to court when someone DOES end up not paying a bill for you. The judge will ask, how much is the invoice, when was the date it was done/invoice date etc. What are your terms, at the bottom, 3% monthly 5% monthly 1.5% monthly whatever, and late fee charge ? $5? $10?

Dont think your hurting anyone else but yourself, we've all been there and done that starting with people paying cash while we push our little dinky push mowers on their property without terms, contracts or insurance. You should have ALL of this information on your invoice. Have you EVER seen a big companies invoice for services/goods that didnt have these terms?

If you just bought a 8k zero turn, you'd pay say $223 a month. If customers X,Y, Z choose not to pay, and you have to WAIT for their dumb A$$s to pay a month late, do you think your zero turn mower company payment cares? You now have to use your own money or be forced to pay high/er interest on a credit card or term loan.


I don't see the need to add a paragraph of "what will happen if you pay late" to each of my invoices in a desperate attempt of trying to look more professional! I have contracts that are signed prior to service outlining the terms of my services and penalties for being late... I also sit down with the potential customer, and answer any question they may have while they're looking over the contract. I also have all of my documentation with me, GL ins, Workman's comp ins, licensing ect. at which they are more then welcome to look over and if they want i will even make them copies. So when you get talking about eating me alive in Court, i will have to say that I'm not worried "I have all the correct documentation" The reason for this thread was to ask what everyones opinion on what was a fair %%% of the bill to charge for a late fee (ie. 5%,10% or flat fee) NOT how much Interest i would like to charge late customers. P.s. Speaking about being eating alive in court, How did that A/C repair turn out? did you pay for the damages that you caused or did you convince the homeowner to claim it on their homeowners insurance???