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grassmasterswilson
12-15-2010, 07:56 AM
How long after sending invoices do you make them due? How long before you terminate or add late fees.

I'm sending invoice out on the 15th and make them due by the 1st. this is all for work done the previous month. I have pretty good success with collections, but with business you always have late or no pays. most of my late pays are always late and i have come to expect it.

the problem is with no pays. since i float them for an additional 2 weeks they will get cuts before payment is due.

Just wondering what everyone's policy is.

Lefet
12-15-2010, 08:11 AM
Invoices sent at the end of the month, due upon receipt. Two cuts MAX with no payment. Late fee after 30 days.

weeble67
12-15-2010, 08:19 AM
I have a $20.00 fee each for bounced checks, and $5.00 late fee per month if bill isn't paid by the end of next billing cycle. This was the first year in 5 years I received a bounced check. I've only had 2 no pays. The one was a lost cause, she went belly up and lost her house, I've wrote her off as not going to pay me. The second I sent a nice letter saying I'm sure it was an oversight. After no reply I sent another letter with copies of the invoices that were unpaid and another reminder of the due amount. No reply so I sent the my next step is small claims court letter. She sent a check.

grassmasterswilson
12-15-2010, 02:35 PM
thanks fellas. i have about half my list on monthly contracts and the other half i bill them each month based on however many cuts i did. Just trying not to get too far behind and not get stuck with 2 months worth of non paying invoices. Have about 3-5 every year like that but guess it comes with the business.

domain311
12-15-2010, 02:44 PM
Bills sent out at the end of every month...due 15 days. 2% "finance" of any unpaid balance added onto next bill.

Lefet
12-15-2010, 02:51 PM
I have a $20.00 fee each for bounced checks, and $5.00 late fee per month if bill isn't paid by the end of next billing cycle. This was the first year in 5 years I received a bounced check. I've only had 2 no pays. The one was a lost cause, she went belly up and lost her house, I've wrote her off as not going to pay me. The second I sent a nice letter saying I'm sure it was an oversight. After no reply I sent another letter with copies of the invoices that were unpaid and another reminder of the due amount. No reply so I sent the my next step is small claims court letter. She sent a check.

The bank charges us $35.00 for a bounced check so I'd pass that on to the client. Fortunately we haven't had a bad check yet. Sad about the lady losing her house. We had one that was able to sell just before losing. Sold it at a loss, and it went with FULL furnishings and a closet full of ladies clothing. Lady was some big wig at a financial firm or something. Had a closet and garage full of upscale clothing. They paid their bill to us though.

thanks fellas. i have about half my list on monthly contracts and the other half i bill them each month based on however many cuts i did. Just trying not to get too far behind and not get stuck with 2 months worth of non paying invoices. Have about 3-5 every year like that but guess it comes with the business.

We're trying to switch 98% over to monthly contracts. We can pretty much get a hint if someone's going to try to beat us. They say things like, "every other week cuts", or "I'm not turning the sprinklers on this year". Or weather or not they want a spring clean up. Or always some excuse about "charging too much" or the other guy use to do it for...... (then why aren't they still with them?)
Good luck.

LB1234
12-15-2010, 04:59 PM
How long after sending invoices do you make them due? How long before you terminate or add late fees.

I'm sending invoice out on the 15th and make them due by the 1st. this is all for work done the previous month. I have pretty good success with collections, but with business you always have late or no pays. most of my late pays are always late and i have come to expect it.

the problem is with no pays. since i float them for an additional 2 weeks they will get cuts before payment is due.

Just wondering what everyone's policy is.

what does your contract specify? My contract specifically states that if payment is not recieved in full by XX days or an overdue balance of XX constitutes a breach of contract. It also states when invoices are sent out and when payments are due. It goes even further to explain late fees, finance fees, canceled check fees, etc. No reason you should be "floating" anyone any money...I thought you were in the service industry not banking industry.

grassmasterswilson
12-15-2010, 08:31 PM
what does your contract specify? My contract specifically states that if payment is not recieved in full by XX days or an overdue balance of XX constitutes a breach of contract. It also states when invoices are sent out and when payments are due. It goes even further to explain late fees, finance fees, canceled check fees, etc. No reason you should be "floating" anyone any money...I thought you were in the service industry not banking industry.

you will always "float" people due to the time between sending out invoices and the due date.

GunnPropertyServices
12-15-2010, 09:36 PM
all monthly contracts get billed on the 15th of each month due by the end of the month. works out great keeps you current for each month, gives them plenty of time to pay and get the check in the mail. I use to bill at the end of the month due upon receipt but it left too much money out there some people wouldnt pay till like the 10th or 15th of the month i would then be a month and half behind in pay.

Roger
12-16-2010, 09:45 AM
Some of the practices stated here imply that you are asking people to pay your invoice, regardless of their payment practices. That is OK, but my finding is that many residential customers pay their bills once or twice per month. We do in our household, first of the month, than again, about the 20th. We don't pay bills every day as they arrive. And, I don't think many others do either.

Imposing your payment requirements on the customer is fine, I have no problem with that practice. But, I am just saying that the customer may have their own practice, one that has dates not coinciding with yours. Remember, paying for grass cutting is very far down on the list of necessary bills to pay. I would like to think otherwise, but ...

lukemelo216
12-16-2010, 01:30 PM
I bill for that months services on the first and its due on the 30. So if im getting 25$/cut and I will cut 5 times in august plus 1 fert at $45 they get a bill of $170 on august 2-3 due august 30. If we had an additional service thats billed upon completion.

LB1234
12-16-2010, 05:19 PM
you will always "float" people due to the time between sending out invoices and the due date.

i don't disagree.