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Old 10-05-2013, 02:26 PM
birddseedd birddseedd is offline
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What do you do for your late fee?

currently i have a "Underpayments may result in suspension or termination of services. Any Overdue balance is subject to 10% fee"

what terms are typically used?
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wait why do you prefer Scag? I thought you owned a Bobcat that mowed the first American Colonies
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Old 10-05-2013, 03:39 PM
Working Man Working Man is offline
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I think you can only go up to 24% annually which would make it only legal to charge 2% per month. I have in my contract that there is a $10 late fee. Not sure if its legal but I'm not charging as a percentage and they sign an agreement up front to those terms. I usually offer to take off late fees if they pay the balance in full if they get a couple months behind and I need to make a phone call but sometimes people just see the late fee and pay it. If anyone complains about a late fee I remind them that they are tying up my money and if I don't pay my bills on time I have to pay my creditors late fees.
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Old 10-05-2013, 05:13 PM
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TriCityLawnCareLLC TriCityLawnCareLLC is online now
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You can set your own terms on late fees. We do 10%. People agree to it when they sign up. I made an additional $120 one month on late fees alone. For new clients we give them a warning the first time they are late by showing a late fee on their bill and showing that it was "waived". After that if they are late consecutively (twice in a row) it's mandatory that they prepay upcoming month or cancel service.
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Old 10-05-2013, 05:26 PM
birddseedd birddseedd is offline
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Quote:
Originally Posted by Working Man View Post
I think you can only go up to 24% annually which would make it only legal to charge 2% per month. I have in my contract that there is a $10 late fee. Not sure if its legal but I'm not charging as a percentage and they sign an agreement up front to those terms. I usually offer to take off late fees if they pay the balance in full if they get a couple months behind and I need to make a phone call but sometimes people just see the late fee and pay it. If anyone complains about a late fee I remind them that they are tying up my money and if I don't pay my bills on time I have to pay my creditors late fees.
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don't credit cards charge some 35 bucks? on a $300 card thats more than 24%
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Originally Posted by jrs.landscaping View Post
wait why do you prefer Scag? I thought you owned a Bobcat that mowed the first American Colonies
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Old 10-05-2013, 05:27 PM
birddseedd birddseedd is offline
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How do you go about charging 24% apr in quick books?
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wait why do you prefer Scag? I thought you owned a Bobcat that mowed the first American Colonies
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Old 10-06-2013, 08:49 PM
xclusive xclusive is offline
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Quote:
Originally Posted by birddseedd View Post
don't credit cards charge some 35 bucks? on a $300 card thats more than 24%
Yes they do charge that because it's not based on a percentage. If you are charging a percentage the max you can charge according to my lawyer who drafted my contract 2 years ago is 18% annually or 1.5% per month. Personally I think charging a small fee like $5 or $10 is more likely to be paid without question rather than a $20 or higher late fee. The cell large phone companies charge $5 per month.
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Old 10-06-2013, 08:53 PM
birddseedd birddseedd is offline
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maybe ill do that. sounds easier.
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wait why do you prefer Scag? I thought you owned a Bobcat that mowed the first American Colonies
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Old 10-07-2013, 10:58 AM
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Cedar Lawn Care Cedar Lawn Care is online now
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$10 per month that it is late. After 2 unpaid months services are terminated.
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Old 10-08-2013, 05:10 PM
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Woody82986 Woody82986 is offline
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I honestly stopped dealing with a threat of a late fee altogether. Any client that is late gets one warning. If they are late a second time I will require a card to be put on file for automatic payments from then on. If you don't want to put a card on file after 2 late payments, adios! I just got really tired of having to deal with the threat of a late fee and then actually trying to collect on it. More of a pain than the few bucks are worth.
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