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Late Payers

Discussion in 'Pesticide & Herbicide Application' started by rcreech, Feb 1, 2009.

  1. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,057


    I have a handful of customers that have yet to pay off their 08 account.

    I am going to turn them over to a collection agency but don't want to piss them off either.

    Do you have a letter that nicely states you are going to be turning them over to a collection agency?

    I want to be nice and give them 1 more chance and "threaten" them a little with a collection agency.

    Any ideas on what to do here or any examples? How do you handle?

  2. mikesturf

    mikesturf LawnSite Senior Member
    Posts: 795

    Have you spoken to any of these people? What's their story? Have they made any attempt to pay?
  3. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    It doesnt work, I tried the letter saying that I was going to turn them over to our collection agency if I did not hear back by X day. They dont think you will do it after all it is probably on $120 bucks.

    I finally signed up an agency on Monday and sent 12 people to them. I cant wait for them to get the letters. The "I'll put it in the mail tomorrow" days are over.
  4. dcgreenspro

    dcgreenspro LawnSite Senior Member
    from PA
    Posts: 688

    I just made some phone calls. People like to talk to me about what's going on and more than half didn't know that they had a problem until I pointed it out. If I need to call a collection agency, I would just assume to drop them.
  5. turfsolutions

    turfsolutions LawnSite Senior Member
    Posts: 851

    I don't think he will have to drop them as it isn't likely they will resign. The question is does he want to go through the trouble of getting the money he is owed. I would definately talk to the person on the phone before I handed them over to an agency so I could try and work something out. If they are hurting maybe they could at least cover your costs. If that doesn't work then hand them over. Hopefully you can get the money you are owed.
  6. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

  7. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    nice one, this is what my dad does after too long. this wokrs well when you show up unannounced a their door demanding payment. they wont know what to do but cut a check right there. works 90% of the time. with these folks we started making these prepay for part of the season with stopped service once the money runs out, you may consider this option to keep them if they can do it, otherwise----- to the curb. we are worth the money

    LIBERTYLANDSCAPING LawnSite Bronze Member
    from Indiana
    Posts: 1,283

    I had a handfull (5) that I had from 08 & sent a certified letter to them stating what their balance was & that they needed to pay in 10 days, or go to small claims court. ALL paid within 10 days. I had previously sent letters to all of them with no response. Certified has always worked for me. (Make sure you DON'T put your return address on them, or they may refuse to sign for it) Sending certified/registered also gives you evidense that you DID send them a letter, if you take it to small claims court.:rolleyes:

    LIBERTYLANDSCAPING LawnSite Bronze Member
    from Indiana
    Posts: 1,283

    I have done this in the past..Well, I'd slip the unpaid invoice in their front door:) I have had good response with that:weightlifter:
  10. NattyLawn

    NattyLawn LawnSite Bronze Member
    Posts: 1,643

    We add finance charges after 30 days. Most of the time the customers ***** about the finance charges or don't pay the finance charges at all, but at least they pay the original bill. Our office manager makes calls as well.

    You can also say "we're a small company, and it hurts our bottom line to have delinquet accounts". If you know the customer and know what they do, try and flip it on them. "So Dr. Jones, how do you handle it when patients are late to pay?"

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