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You got to read this!!! Client with late payment!

Discussion in 'Business Operations' started by bridges, Nov 27, 2001.

  1. bridges

    bridges LawnSite Member
    from RI
    Posts: 196

    Listen to this!

    For starters I do a spring clean and fert. mowed a week later this is in the spring(may2001). The client calls me up says, I have someone new taking care of my yard now, i did not thing you were going to do it this year. What ever. I told i will send you a bill and take care.

    Every month i sent him a bill. In oct. i sent a $2.00 interest charge and nov. i sent a .37 interest charge. Today he sent the check. He writes on the invoice copy of payment Irs.

    Whats up with that?? Am i wrong for charge this intserest?

  2. ScotLawn

    ScotLawn LawnSite Senior Member
    Posts: 309

    If you state on your first bill somewhere that Interest will be charged for late payments after XXX days you are ok. If you don't list that somewhere then I think legaly customer doesn't have to pay it.

    That being said, I'd still charge him for it. No payment for the FULL season for one job done. One word describes the cust.

  3. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Nothing wrong with charging interest. Only excessive interest like a loan shark is illegal. From you #'s you don't exactly get close to excessive. :cool:
  4. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    The crux of it:
    Terms are: 2% 10 days/Net 30 days. If monthly re-billing is necessary, A FINANCE CHARGE of 1 ½% per month (18% per Annum) will be charged to all past due accounts. A Minimum Finance Charge of $5.00.

    That says it all. I dont think you can go over 24% and 18% is the norm around here.

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