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Old 11-03-2009, 09:04 PM
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mps mps is offline
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Join Date: Jan 2004
Location: Bloomington MN
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Late Fees?

wondering what other companies are doing for late fees. We have never had a problem until a year and a half ago. Most of our customers pay with in 30 days which is great no complaints there. but some companies are out 60 to 180 days they always pay but it takes time maybe with a late fee they will get the lead out. dos any one know what i can charge legally in Minnesota i was thinking a flat rate with a percentage after any info would be great thanks
If they want me to be there bank i should get paid for it
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Old 11-03-2009, 09:10 PM
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silverado212 silverado212 is offline
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Don't know about MN but do like Doctors do. Something like 10% net 30, 20% net 60 days and so on. Better have it in ink though. So in contract and or invoices.
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Old 11-04-2009, 07:51 PM
ADVANCEDOHIO ADVANCEDOHIO is offline
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Id go with the percentage fee when late. I also offer 5% off for accounts that pay within 15 days... It works very well!!!!!!!
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Old 11-04-2009, 08:01 PM
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DLAWNS DLAWNS is offline
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Quote:
Originally Posted by silverado212 View Post
Don't know about MN but do like Doctors do. Something like 10% net 30, 20% net 60 days and so on. Better have it in ink though. So in contract and or invoices.
I've always had it at 2% but I don't think that is getting the message across. I will be changing to Silverado212's idea. One of my customers is a real estate appraiser and this is the way he does it and he said it gets the money in quicker and if it doesn't the way I see it is that at least if your waiting on your money, you'll make some decent interest.
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Old 11-04-2009, 08:56 PM
johnnybravo8802 johnnybravo8802 is offline
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What about the credit cards-If you don't pay by the 15th, you're card is automatically drafted. I had to do that at the fitness center, but it worked.
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Old 11-04-2009, 09:17 PM
BMFGC BMFGC is offline
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check your local and state laws first of all to see what the max annual percent is. Also, consult an attorney before you make any final decisions. You may be able to get more than the perecentage by a loop hole. If you feel like the percentage is not enough in some states you can do it as a "re-billing fee" instead of a late charge. A re billing fee can be what you decide. This is how Ford, Dodge, Chevy, etc get away with such high late fee penalties. This is a nice trick that most people do not know but you will need to consult attorneys before you do anything.
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  #7  
Old 11-04-2009, 09:49 PM
SunState Lawn Care inc SunState Lawn Care inc is offline
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We charge a late fee if over 30 days except for a couple of accts we know up front pay later then 30, one pays every 45 days and one we give a 2% discout to for paying early (there request) so we went up the 2% on the contract to cover our loss on that one they still pay late so we gain 2% most of the time..
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