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Old 09-27-2012, 08:13 PM
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Late Fee

What is a normal late fee for monthly service customers. I have a few every month that wait till now to send in the money. Out of all my cutomers I have given the OK to 2 people to pay after the 15th and did this when they signed up, never been an issue with them. There is always about $1,500 in A/R at the end of the month and I would like to capitalize on that. I thinking $7-$10 if paid after the 15th with no grace period. Hell, why do you need a grace period, its due by the 15th and you got it on the 1st, that's half a month to mail me a check. Next season I will be signing all new customers up on autopay with a credit card.
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Old 09-27-2012, 08:21 PM
Duekster Duekster is offline
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$5.00 is fair
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Old 09-27-2012, 08:25 PM
tjjn06 tjjn06 is offline
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I use $5.00 myself.
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Old 09-30-2012, 03:36 PM
EverythingOutdoors EverythingOutdoors is offline
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We use 1.5%, but on a $200 invoice, it's not really enough to force the payment.

I have one commercial account that will be getting new terms next year. I'm going with Net 30, $20 per invoice per month late fee.

My wife wants to drop them, but they fit in well with a few other adjacent accounts.
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Old 09-30-2012, 03:43 PM
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I bill on or around the 15th and it is due on the 30th, late on the 5th. So basically 15 days net with a five day grace period. I went to a late fee of $5 or 5% whichever is greater and it has been great. Most started paying on time, and my religious late payers are happy to pay the late fees. I make at least $50 each month in late fees. I've done this for the past three years and will continue to do it till I retire.
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Old 09-30-2012, 03:54 PM
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You might need to remember. If people are paid every 2 weeks you might not be in the same cycle as them . So they may need to wait to pay you.
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Old 09-30-2012, 03:57 PM
Duekster Duekster is offline
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I am not sure if you can put a late fee on sooner than 30 days late?
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Old 09-30-2012, 04:28 PM
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I just sent out invoices. "All invoices are due by the 15th of the month." This statement has been on my invoices for the last 2 years, but I added this yesterday. "All invoices not paid by the 15th will incur a $7.00 late fee." I will check my PO box on the 17th and all that haven't paid by then will get it tagged onto the next month. I'm not having extreme budget issues where I'm needing more cash flow, it's a principle of the matter more than anything else.
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Old 09-30-2012, 05:46 PM
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We issue the percentage but most will pay late and scratch the late fee off.
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Old 09-30-2012, 07:23 PM
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Quote:
Originally Posted by meets1 View Post
We issue the percentage but most will pay late and scratch the late fee off.
When they scratch off the late fee. I call them and drop them immediately. I realize customers are hard to come by in this industry, but we are a contractor just like the plumber or the electrician and deserve to be treated the same way. When we as contractors don't force people to take us serious we allow people to take advantage not only to us but our entire industry.
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