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Late Payment fees for commercial accounts

mirrorlandscapes

LawnSite Member
Location
Northern IL
We maintain a small commercial account that is a part of a chain (not a restaurant) and we're still waiting on payment for work done back in the beginning of last month. I was told that payment would be less than net 30 and it's already approaching 60 days. Should I or can I tack on late payment fees on my next bill? Make phone calls? Talk to the store manager? Stop services?

Anybody got advice? I know 30 to 60 days is standard for most comms. but when I was told 3 to 4 weeks max. it gets frustrating. Thanks in advance for any help.
 

bigbone

LawnSite Member
Location
Hutchinson, KS
I would stop service until you get paid. If they told you 3 to 4 weeks then they need to follow up with that. They are making interest on your money!
 

jbone

LawnSite Member
Location
Poughkeepsie NY
I agree stop services, if they still refuse to pay, then contact a lawyer, they can usually take care of it quickly. We had a problem with a commercial condo complex once, they refused to pay so my boss had his lawyer put a lien on the property until they paid. They werent able to close on any of the condos they were trying to sell, so he got his money pretty quick:laugh:
 

bohiaa

LawnSite Fanatic
LAte fee's YES,,, But you need to have it in writing useually on the bottom of the bill....... your money in someine's elses account gains them interest.... your money in your account gains YOU interest.... charge 3 times the interest it would be revicing in your account......
 

carcrz

LawnSite Silver Member
I'd talk to them to see what's going on. Let them know that they have received a warning, but late fees will be tacked on if it happens again. You have a business to fun too.
 

Midwest Lawn Services

LawnSite Member
Location
St. Charles, MN
LAte fee's YES,,, But you need to have it in writing useually on the bottom of the bill....... your money in someine's elses account gains them interest.... your money in your account gains YOU interest.... charge 3 times the interest it would be revicing in your account......
Good advice. You should go with what your contract states, if you don't have a clause in it on late payments, it may be hard to collect it.
 

d&rlawncare

LawnSite Senior Member
Location
michigan
If it was an apartment complex (I know its not) they would charge you a late fee for 1 day late on your rent. If your contract allows, mine does, STOP services, invoice late fees on seperate invoice. IF the grass gets out of control why they are trying to pay you then jack the price way up to cover your costs once you continue service. I would give them a little time past the 30 days (still hit them with the late fees on) before stopping service. Maybe 2 weeks after that, at the very most. Stop service and keep charging late fees.
 
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