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slow to pay

Discussion in 'Business Operations' started by illday, Jun 17, 2003.

  1. illday

    illday LawnSite Member
    Messages: 89

    I recently went into business for myself and everything is going
    great except for a number of jobs that I have done haven't paid.
    Because I'm just starting out, I need every dime I can get.
    How long should I wait before I actively start harassing clients whom haven't paid?
  2. glenjr10

    glenjr10 LawnSite Member
    Messages: 98

    i send out my bill out on the 1st and they are due on the 15th. i will call all of my clients on the 16th and remind them that their payment is due, and ask when i can expect a payment. i then send a late notice, and continue calling them (not harrassing them "fair debt collection practices act") until i have recieved my money.
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    you should have a system of steps to follow if payment was not received

    1. call to make sure that they received the invoice, if they have remind them of the due date. Tell them that you will send out another copy if they would like

    2. send out an invoice with a late payment fee on it.

    3. Stop all work until paid in full (this should get their attention, and if they are still late in paying you or drop you as a LCO then that is a customer that you don't want to have)

    4. Finally if the bill is large enough and you feel like losing some money, contact a collections agency. But must collections agency will not go after something unless it is $200 to $500 or greater.
  4. Port City Lawncare

    Port City Lawncare LawnSite Member
    from Alabama
    Messages: 75

    I spoke with someone about this a few days ago. He says he calls each customer the night before, so there's no reason why they cannot leave a check or whatever payment you've initially agreed upon.
  5. edrenckh

    edrenckh LawnSite Member
    Messages: 135

    Small claims court would be better than a collections agency. Good experience for you too.

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