Late Fee

Just wondering if any of you guys charge a late fee. I started charging this spring and have already collected $637.00. I can't beleive I didn't do this sooner. I bill the first of the month for the last months mowing and give them till the 15th to pay, after that the late fee kicks in.

 

You must have some big accounts or a lot of late payers. Tell us what your doing, because your doing something right. We only have one late payer, but they always pay. Sometimes they get a month or 2 ahead, so we don't worry about it.

 

That is a lot of money.

We spend more time assesing the fee and than deleting it from the accounting program (Cuz they seldom pay it anyway)

I'm not in the business of accessing/collecting late fees and I won't keep customers that pay late.

 

After looking over the accounts it seems to be the same one's that are paying the late fee. It must not bother them to pay an extra 15 to 90 dollars every month....As long as they pay I love it.....

 

That makes sense.

Collecting $3 from 15 customer....

 

Soumds like i have to start chargin a late fee.

 

this year started a using a 15 dollar late fee. It amazes me how the same people month after month are late and pay the late fee... do you think theyd learn the first time? its also funny how some of my strictly mowing customer who dont have the money for add ons dont mind paying a late fee month after month. I made quite a bit of money from late fees this year too.

 

Evan, Your right about the same customers paying the late fee. You mentioned you charge a flat 15.00 fee, I charge 15 percent of the total bill. I started this just to incourage my customers to pay on time which most of them do, but the one's that don't seem to be willing to pay the late fee which in turn has in the long run made me more money.

 

Please be aware that there are laws governing late fees which vary from state to state. Some states have no laws and some are heavily regulated like Maryland. If in doubt check with your local States Attorney. They would be the experts since they would be the ones coming after you. All it would take would be one complaint and you could end up oweing thousands of dollars out to your customers and paying huge fines. I've seen it happen.

 

Richard or anyone else..

I was thinking about a flat fee of $10. Do you know what the % is for Maryland?