Late Fees

Discussion in 'Business Operations' started by Todd73, Aug 21, 2017.

  1. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,099

    Up until recently, all of my customers were spot on with payment. Now, I'm getting a few that are becoming a bit more lax with their promptness. I'm going to start instituting late fees now and was wondering how you are doing them? Are you doing a one time flat fee? Fee per every "x" amount of days late? Also, how did you come up with your fee? Arbitrary, percent of bill, or something else?

    Thanks!
     
  2. brycez28

    brycez28 LawnSite Senior Member
    Messages: 295

    from my understanding, each state has their own rules on how much you can charge. In Wisconsin, my late fees are outlined in my contract as:

    Interest and Collection Costs: In the event Customer fails to pay the amounts due under the terms of this agreement when due, interest may be charged by Contractor on the unpaid balance at the rate of one and one-half percent (1.5%) per month. Customer further agrees to pay all costs and expenses incurred by Contractor in collecting or attempting to collect amounts due hereunder, including reasonable attorney’s fees and court costs.
     
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  3. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Messages: 15,135

    15% and a "rebilling fee".
     
  4. River

    River LawnSite Silver Member
    Male, from Wisconsin
    Messages: 2,189

    10% for me. Its in my customer contact
     
  5. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Messages: 15,135

    Crap, supposed to be 1.5% monthly/18% APR.
     
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  6. brycez28

    brycez28 LawnSite Senior Member
    Messages: 295


    I think you can only do 18% APR (1.5% monthly). That is what the lawyer I paid to do my contract said.
     
  7. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Messages: 15,135

    10% what???

    Daily?

    Monthly?

    Annually?
     
  8. River

    River LawnSite Silver Member
    Male, from Wisconsin
    Messages: 2,189

    I add 10% each month late. My bad for not clarifying
     
  9. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,099

    So it appears that a percentage is the consensus. I'm going to have to get something added in to my agreement ASAP.
     
  10. ArTurf

    ArTurf LawnSite Platinum Member
    Male, from Ark
    Messages: 4,345

    Ask your accountant for advice on this
     

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