Late payers

Discussion in 'Business Operations' started by precisioncut, Jun 19, 2004.

  1. precisioncut

    precisioncut LawnSite Senior Member
    Posts: 654

    I have a policy that is in every contract that says "Payments are due by the 15th of every month. If the balance is not paid in full by the 15th, the client may be subject to a late fee of $10."

    Now with that, it's past the 15th and a couple are now late. Should I be chasing the payment or just add that balance to the next bill along with the late fee? Chasing the payment seems like a waste of time considering one is for $61.25 and the other is $54.38. How do you guys handle these situations?
  2. dlandscaping

    dlandscaping LawnSite Senior Member
    from mass
    Posts: 835

    Send another bill saying this is your first time being late, 1 time fee waiver, you balance is the same and you have 1 week to pay else you get the late fee, good day mam.
  3. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    If a client is ever late paying one month, I very tactfully add a note to their billing statement the next month stating that the payment was late and to avoid any more late payments, I would be more than happy to work with them if billing during a different time of the month would be better or if payment was just forgotten until the due date had past and they sent it out late. If payment is late twice, I call them and talk to them and warn them about a late payment charge. If they miss it a third month, the charge goes into effect. I haven't ever had to go to steps two or three. Normally, people think that a few days late isn't a big deal. Once they know I took notice of the due date and that I want m money by the due date, they don't push their luck again. Next season I think I will probably be more strict and send out notices at the start of the season that late payers will automatically see a late charge added to their next bill if payment is late and not worry about cutting slack.
  4. precisioncut

    precisioncut LawnSite Senior Member
    Posts: 654

    I will just add a note to next months payment reminding them of it. If I don't recieve it with the next payment either, I will halt services until fully paid. Just because it is a small amount doesn't mean I dind't earn it! They agreed to pay it, I don't understand.
  5. Green Pastures

    Green Pastures LawnSite Silver Member
    Posts: 2,457

    1st time late they get a letter clearly showing the policy and that they are being given a break.

    2nd time late no mercy, late fee is imposed.

    3rd time late, service is stopped till payments are caught up and advance payment is made.

    No exceptions.

    If you were late paying your credit card bill or your electric bill isn't this what they would do to you.

    It's time we followed the same standards as every other service provider out there.

    I'm a stickler for late payers.
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi precisioncut,

    You can always consider a quick call as well.

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