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Late fees

Discussion in 'Lawn Mowing' started by Mark McC, Jul 17, 2004.

  1. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    Hi Everyone,

    I bill at the end of each month for that month's service and the check is due by the 15th. This July 15, I should be getting checks for June lawn care.

    Several people are late, two persistently so. How much do you charge for late fees and when does the late fee kick in?
  2. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    My payments are also due by the 15th of each month. Late fee kicks in after there 15 days late. $15.00 late fee also.
  3. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Our monthly accts are due by the 5th and a $15 late fee after the 10th. I figure that, that has already given them 40-41 days to "use my money" so to speak and that is more than enough. Needless to say I have very few if any lates in the month that way. I also have one that insist on paying a month in advance as he is a building contractor and said that he knew how hard it is to collect for work sometimes so he prefers to pay for regular contracted service like ours in advance. Works for me!
  4. Buddy Markley

    Buddy Markley LawnSite Member
    Posts: 31

    We bill out at the end of month with a net 30.

    Our contract holds the customer to a 10% charge after 30 days and an addional 2% every month after that.

    I used to waive those late fees for some, but no more.

    Every time I waive a fee its breaks my own contract which could work against me someday if i ever went to court to collect.

  5. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    $10.00 late fee after 15 days, additional $10.00 after 30 and so on.
  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    make sure that you check with an attorney regarding late fees. By law you can only actually charge a certain percentage annually. When you are Inc you can charge around 17% (don't know the current) annual while if you are not Inc. it's only around 8% (again don't know if this is current) a year. But like a said check with your lawyer because there are loop holes around it.
  7. ProStreetCamaro

    ProStreetCamaro LawnSite Platinum Member
    Posts: 4,139

    LOL late fee's, thats funny. Around here you chrage a late fee and they cancel right on the spot. Simple as that.
  8. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    Tiedeman, you are absolutely right. I talked to my lawyer and as long as you word it as Monthly Late Fee and keep the same amount for each invoice you'll be fine ( at least here in R.I. it's that way )
  9. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    you see that. that's exactly the sick kind of mentality that i can't understand (prostreet). no offense my man, but why on earth do u even care if they cancel? late payers cost you money, in more ways than one. i don't know about you, but if a customer is 2 months behind on thier lawn bill, there aint no way i can speak with them reguarding extras. how long will it take them to pay for extras? there aint no way i'll accept novembers payment the following march. good luck at your part time job this winter, if you need me, i'll be at disney land
  10. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    Bobby, please be more forward about how you really feel. You are SO non-confrontational.

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