late fees on unpaid invoices

Discussion in 'Business Operations' started by tlipari, Sep 28, 2007.

  1. tlipari

    tlipari LawnSite Member
    Posts: 13

    Does anyone know the minimum/maximum you can charge on an unpaid invoice? I know they are state regulated? What would it be in michigan? I've tried the Michigan website and googled it, nothing. Any help would be appreciated. The software I'm using (groundskeeper pro) says 1.9%, but to check with my state. Help!!

    Thank you
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    you can't charge 10 cents unless you have it stipulated in a signed contract, sorry but you are SOL
     
  3. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    charge waht the banks are paying for interest......


    this way it looks like your NOT trying to screw anyone..... it just proves that your ligit, and you want your money.....

    it means that you have a savings account and the monies go in there,
     
  4. shane mapes

    shane mapes LawnSite Senior Member
    Posts: 537

    I Put On My Proposal That ' Payment Do By The 15 Of Each Month Or Pay Penalties Of 10% Of Balance I Haven't Had Much Problems Yet.
     
  5. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    it's Like 1.75 here. Like you I require payment by the 15th... invoices go out on the last day of the month....
     
  6. jbannick18

    jbannick18 LawnSite Senior Member
    Posts: 490

    I require payment 15 days after invoice is delivered, once it's late a 5 dollar charge is added and that keep reoccuring every 15 days. I also put on my contracts that if its necessary that a court appearance be required they are to pay for all court cost. Bounced checks also cost them 20 dollars.
     
  7. shane mapes

    shane mapes LawnSite Senior Member
    Posts: 537

    is it hard to get bids with all this on the bid . i would have a hard time getting new jobs like that
     
  8. jbannick18

    jbannick18 LawnSite Senior Member
    Posts: 490

    I just got licensed/insured so I have not put bids on commercial yet but for homeowners its not. Need to have it to protect myself, or I'll get screwed over.
     
  9. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Nah don't worry about it, nobody ever pays those late fees anyhow, all you have to do is make sure you get paid... First year I would plan on some not paying, just stay away from commercial until you got your stuff down and you'll be fine, residentials aren't that bad.
     

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