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  #1  
Old 01-05-2005, 10:01 PM
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tiedeman tiedeman is offline
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Behind in payments equals payment options

I have a customer that is always about two weeks behind in payments (but yet always pays the invoice total). I was thinking of putting my foot down and instead of constantly charging late fees which I already do, I was going to start to request payment after each service. I have two options: payment upfront in advance or put a credit card on file where it gets billed after each service. What would you do?
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  #2  
Old 01-05-2005, 10:32 PM
Precision Precision is offline
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what are your late fees. That may be the problem. If it is like $3 then they pay when they feel like it. If it is closer to the usuary rates then it gives an incentive to be on time.

Flip side is if they are always paying and paying the fee, it is free (less the cost on the float) money.

getting payment after each service is more of a headache than getting paid late IMO.

I offer 2 payment dates. due on 1st and due on 15th. That way people can budget to when they want to pay me. I don't care and so far I have about 60 - 40. Helps make my cash flow easier.

Just an idea.
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Old 01-05-2005, 10:37 PM
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rodfather rodfather is offline
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Quote:
Originally Posted by tiedeman
I have a customer that is always about two weeks behind in payments (but yet always pays the invoice total). I was thinking of putting my foot down and instead of constantly charging late fees which I already do, I was going to start to request payment after each service. I have two options: payment upfront in advance or put a credit card on file where it gets billed after each service. What would you do?
Depends:

How much does he spend each month?
How much is he worth to you?


2 weeks behind in payments? Hell around here, that is good as cash IMO...
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  #4  
Old 01-05-2005, 10:43 PM
TotalCareSolutions TotalCareSolutions is offline
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If he's always 2 weeks late, is he really late? I mean... 2 weeks? I'd say, if theres profit there and they always pay, focus on something else.
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Old 01-05-2005, 10:49 PM
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rodfather rodfather is offline
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Quote:
Originally Posted by TotalCareSolutions
If he's always 2 weeks late, is he really late? I mean... 2 weeks? I'd say, if theres profit there and they always pay, focus on something else.
Troy knows what he has to do and he does know what to focus on...
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  #6  
Old 01-05-2005, 11:07 PM
Yard Perfect Yard Perfect is offline
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Seems to me if you are getting paid on a regular basis you are a head of most of the guys on this site. I think I would worry about something else. Most folks pay their bills on a monthly time schedule and many pay them on the same day each month, your schedule is just two weeks different, so...... unless you are going hungry.................
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  #7  
Old 01-06-2005, 04:59 AM
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tiedeman tiedeman is offline
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I think that what I am doing is just cracking down on people so they pay their bills on time. I am not hungry for money, just thinking of different things to whip the customers into paying on time
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Old 01-06-2005, 11:16 AM
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PMLAWN PMLAWN is offline
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Each week or up front I think would be a pain.
The credit card, IMO, would be the best way.
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  #9  
Old 01-06-2005, 11:39 AM
andersonmowing23 andersonmowing23 is offline
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The credit card isn't a bad idea, but remember that can cost you money to. If he always pays everything and is a good customer I wouldn't really worry about it to much, If he wants to pay your late fee I guess thats up to him, You could consider increasing your late fee, think that was mentioned before. Also is this your worst paying customer, Cause if it is, imo you are doing pretty darn good then.
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