who charges late paying customers?

Discussion in 'Lawn Mowing' started by bligh61, Dec 22, 2004.

  1. bligh61

    bligh61 LawnSite Member
    Posts: 240

    just looking for some feed back on customers who pay late. what kind of fees do you guys charge. penalties or other ways of getting payments within a reasonable amount of time. b
     
  2. i_plant_art

    i_plant_art LawnSite Senior Member
    Posts: 558

    i do its all noted in the contract 1.5% per month ( which aint sh^t but its all TN will allow) for late payment, 30 for NSF checks and anything collected throught attourney or collections is 30% of amount due plus amount due. i only had 4 late payments this year 2 from one client and 2 from another. not too bad i dont think .
     
  3. Mowmoney00

    Mowmoney00 LawnSite Member
    Posts: 134

    Hey i'm in TN. too.....I was told that the maximum amount you can charge is 24% per year. I was also told you can charge a flat rate aslong as it is in reason, please let me know if this is correct and where you got your information if it is. I need to clear this up as soon as possible ... thanks for the help.
     
  4. i_plant_art

    i_plant_art LawnSite Senior Member
    Posts: 558

    mowmoney00- when i went to have my attourney write up my contracts a few yrs back thats what he put in there "1.5% or the maximum rate permitted by law whichever is less" is what it says. he checks every yr when i go back in to see him to revise them and it hasnt changed ... 1.5% aint much i would rather have something like $0-$40 is $10 late fee $40-100 is $15 late fee 100-500 is $25 late fee etc etc i think would be better but i dont know what the law says ...... my contract has some other things in it that i can do to get them to pay... let me know if you would like a copy its in word format i dotn mind sending it over to you
     
  5. Mowmoney00

    Mowmoney00 LawnSite Member
    Posts: 134

    i plant art - Yes I really would like a copy of your contract to see what your lawyer added to yours and what mine did not. My accountant and lawyer said this ok to do....so i'm currently charging $25.00 for any amount that is 15 days past the invoice date. I trust my accountant, but my lawyer is a different story. Know any good lawyers :p . The invoice clearly states this in bold print and it also states that payment is due upon reciept of invoice. I also charge a $30.00 returned check fee. Half of my customers are on contract and the other half are "pay on a monthly basis". I'm working to convert all other customers to contracts with added services of course. Well to make a long story short..."Do you think i'm doing the right thing". Opinions needed from anyone...Thanks

    P.S. i plant art...send me a PM and you can send me that contract...Thanks alot
     
  6. AssuredServicesCo

    AssuredServicesCo LawnSite Member
    Posts: 113

    We send a Statement to contract customers on the 1st, for the prior months service. We request payment be made by the 15th. If payments are postmarked after the 15th we assess a $ 25.00 late fee. Three late fees and you're placed on a "cash at time of sale" basis. No one pays late so far. Rock On.
     
  7. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    usually after sending a threatening letter telling them that i will assess a late fee if payment isn't received in 10 days, they pay up almost every time. rarely have i had to actually add the fee
     
  8. naturescaretaker

    naturescaretaker LawnSite Senior Member
    Posts: 851

    21% annually or $5.00 per month, whichever is more. Starts at 20 days past due. Also, any leagal fees and collection costs get added too.
     
  9. dwc

    dwc LawnSite Senior Member
    Posts: 627

    Here in OK our lawyer told us that we can charge any fair amount we want as long as we call it a service fee and not a late fee. Plus it MUST be on their original invoice that you will be assessing a service fee of $___ if not paid by the due date.
     
  10. Mowmoney00

    Mowmoney00 LawnSite Member
    Posts: 134

    dwc,
    Is there a big difference in the wording of "late fee" or "service fee". Did your lawyer give you an explaination on why you have to use the "service fee" words.
     

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