Past Due accounts?

Discussion in 'Business Operations' started by 24ON48OFF, Oct 24, 2006.

  1. 24ON48OFF

    24ON48OFF LawnSite Member
    Messages: 52

    I have 2 accounts right now that owe about $150 each. I have sent one a letter saying that they need to bring their account current so we can continue services. No response. I was hoping they would get the picture, guess not. I was in the area last week and noticed that the grass had been cut. What have any of you done to collect these. Should I try to collect on my own or get with a collection agency?

    Thanks for any help.
  2. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Messages: 2,128

    Call them. Drop by and hand deliver the letter. If they are home, talk to them. If they aren't there, drop by at a time they would normally be home. Keep calling. Do what companies would do to you if you were late with a payment. Hound the hell out of them.
  3. 1MajorTom

    1MajorTom Former Moderator
    Messages: 6,073

    I agree with woody82986, showing up in person works great. Tell them you are here to collect payment. If they say, "I won't be able to pay you until i get my paycheck on Thursday", tell them you will stop by Friday to get paid. Let them know that you WILL keep coming back.

    MOW PRO LAWN SERVICE LawnSite Bronze Member
    Messages: 1,568

    You say the grass has been cut what's it tell you, have a set of bzz and go get your payment.
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Is up to you, but either way it costs...

    One way involves your time, the other, money.

    I myself prefer the collection agency, I get tired of dealing with deadbeats because I tend to get angry, so...

    I use Old Debts, which, after they're done trying they will send you an email giving you the option to forward it to their parent company at 30% or so contingency rates. Old Debts has several packages available, most range in the $10-$20 range, whichever I select, I always use the 'credit record reporting' option for an extra $3 (I think it's $3).

    The best part about it is, it goes on the deadbeat's credit record... Some folks may think this doesn't affect a deadbeat, but I spend time reading another forum where some folks with bad credit are looking for ways to fix things, and it does affect them... Especially those who talk about it several years after the debt is incurred. So ok, maybe it doesn't bother your deadbeat now, but it does come back around to haunt them.

    You then still have the option to clear their credit record either completely, or mark it as 'satisfied' but leaving it on there as a collection issue (I clear the record only if they pay the late fee too, as an example). However, once forwarded to their parent company, this part is out of my control (and frankly, by then I am usually beyond caring, too).

    That takes care of it for me, no more hassling with these folks.
  6. 24ON48OFF

    24ON48OFF LawnSite Member
    Messages: 52

    Do you charge a % or flat fee for late charges. Should I send another invoice w/ late charges or can you send it to collections and add the late charges then.

    MOW PRO LAWN SERVICE LawnSite Bronze Member
    Messages: 1,568

    Keep sending invoices they will pay.

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