Collecting past balance.

Discussion in 'Business Operations' started by OmegaRed, Jul 30, 2012.

  1. OmegaRed

    OmegaRed LawnSite Member
    from NE OHIO
    Messages: 191

    Whats the smallest amount that you would turn over to collections? Do you just take it to small claims?
    I have someone that wrote a bad check and owes $50...just wondering if it's worth the trouble if I can't scare them into paying.
  2. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Messages: 1,476

    Search on line for your states laws.

    Here, small claims is 125 plus 12 percent tax.

    A builders lien is at least 250 for filing charges.

    There are time limits on filing the paperwork. So be aware ahead of time. (now, before you get ripped off)

    Neither of these methods of attempted collection will allow us to collect the filing fees back from a non payer.

    The best bet is take a cheque at the begginning of the month. If it doesn't clear, then you don't do the work.

    Other option: accept credit cards.
  3. OmegaRed

    OmegaRed LawnSite Member
    from NE OHIO
    Messages: 191

    I am pretty small time so credit cards aren't worth it. If I don't get the money I'm not too worried, I was already next door for another account and the whole yard took me maybe 10 minutes. The $10 bad check charge is what pisses me off but it's nothing to get too worked up over.
  4. GreyFlames

    GreyFlames Inactive
    Messages: 90

    Collections take time no matter what. So you have to way your time and expense against the outstanding balance. Think about setting a threshold around $125-$150.

    Still worth calling to follow up on it though.

    As for credit cards. It is not as bad as you think. Plus you get paid instantly rather than waiting around for the customer to pay... or not pay in your case above. You will be able to find out sooner if the customer is not going to pay and therefore you will have done fewer services for them.

    intuit charges a $12.95 monthly fee and you can process your charges on a website... if you use quickbooks you can do it through that. does not charge any monthly price, but you need to swipe the credit card... so not as practical.

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