how strictly do you enforce late fees?

Discussion in 'Lawn Mowing' started by bobbygedd, Dec 11, 2004.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    right now my contracts have late fees, which are supposed to apply, after payment is only one day late. i have been using a "grace period" though , meaning if payment is due on the first, and i get it by the 5, 6th, i don't add a late fee. next season i plan on strictly enforcing late fees. i'll have a 3 day "grace period" , after that the late fee WILL BE ENFORCED, i don't care if you're the president. so tell me, how strict are your late fees, and if they are strict, do people cancel when you enforce them?
     
  2. naturescaretaker

    naturescaretaker LawnSite Senior Member
    Posts: 851

    10 day grace period. $5.00 per month or 21% APR, whichever is higher on the 11th day. No pay no service. Simple.
     
  3. grassyfras

    grassyfras LawnSite Bronze Member
    Posts: 1,473

    Bobby I like you.
     
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    how come? any particular reason, or are there many reasons?
     
  5. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    I send out all invoices the first of the month I require payment due by the 25th of the same month. Any invoice recieved after that date is late and that will be a 10.00 late fee on the next bill. I have 2 idiots that are late every month and they pay the fees everytime. Now on big installs or jobs other than mowing I go with a 5% late fee and I give 25 days from date of completion. I know I am giving a long time table to be paid but I just don't see how some guys give their clients 10 days to pay. I would tell them to get lost. So far works for me. customers really like it. I ain't went broke yet.
     
  6. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    late fees r a joke for the most part
    i have a bibbo that is always late but she likes to play games
    i send a bill she dont pay so on the first of the next month i send another with late fee she sees the new bill and pays the old 1 with out the late fee
    so i can roll over the late fee on the next bill or i can drop it i have this happen with a few of my acc. most of the time i just drop it but this was the last time i will have that problem with her she got the boot and when she ask why it is due to being late with funds every month
     
  7. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    Actually by law you have to look into the laws that your state has about late fees and charging them. Each state is different so to be legal you should look at the guidelines on what you are allowed to do. By being legal in your pursuit to get your money this will help if you have to go to court I found out the hard way. My accountant helped me fix this after a small claims court case that I lost my rear in cause of this I was ready to kill !
     
  8. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    On mowing and maint. accounts it's a $ 20.00 late fee after five days past due, plus 1.5% for administrative costs associated with collecting the bill.After 30 days ,service is interrupted, and collections proceed if needed. I am thinking of changing it to 2 dollars per day after the due date, retro back to the beginning of the month*Example*--bills are due the first of each month, client doesn't pay until the 12th. so his late fee would be 24 dollars . Landscape install billing is strictly enforced. The most we extend credit for an install is 30 days, on day 31, there is a 5% penalty fee added to the balance, sixty days it cycles again, day 61, it gets turned over to court for collection.
     
  9. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

  10. pjslawncare/landscap

    pjslawncare/landscap LawnSite Bronze Member
    Posts: 1,410

    Hey Bob, what do u charge for your late fee. I dont charge any, but I may on a couple next year. Rite now if someone is late by a couple days, I will call them and they always send rite away
     

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