Past due bills
- Thread starter Leafguy
- Start date
Tr33Climb3r
Participating member
- Location
- Wisconsin
Worked for a guy that had $10,000 or so out I believe. Talked many times about doing payment schedules interest free. Just to lower that amount.
treehumper
Carpal tunnel level member
- Location
- Ridgefield, NJ
Never used email for bill collection. Usually a phone call and let them know I am or will be in their neighbourhood and will stop by to collect payment.
- Location
- Longmont, CO
Over due payments are very rare around here. I'm fortunate. I don't have a cookie cutter method for this one.
But, a bill immediately after the job is complete helps. If you can't do that, then call right away. If you get a voice mail message, leave messages daily until you get a estimated time of arrival of a check. Then, hold them to it.
But, a bill immediately after the job is complete helps. If you can't do that, then call right away. If you get a voice mail message, leave messages daily until you get a estimated time of arrival of a check. Then, hold them to it.
I deal with this issue differently based on the amount owed. On smaller debts under $1000 we charge them a fee every month they are late. At 90 days they get a letter saying they have 10 days to pay or it will be turned over to a collection agency. Most of the time this gets you a check. If they don't pay it goes to a collection agency.
Larger amounts we handle differently. If you file a mechanics lien within 60 days of the final time you worked on a property the lien can be placed without a judgment in Ohio. At 45 days these clients get a letter stating that we will file a lien if payment is not immediately received. People don't like this at all and usually pay.
I have gone to court several times to collect and find it more a matter of principal than a worthwhile action. Going to court has always cost me more than the amount of the debt when I factor in my time. I will do almost anything to avoid this as it is awful... At a certain point it becomes a principal issue and you have no choice.
I probably write off about 1% - 2% a year as bad debt. My father is a veterinarian he writes off 10% or more per year.
Larger amounts we handle differently. If you file a mechanics lien within 60 days of the final time you worked on a property the lien can be placed without a judgment in Ohio. At 45 days these clients get a letter stating that we will file a lien if payment is not immediately received. People don't like this at all and usually pay.
I have gone to court several times to collect and find it more a matter of principal than a worthwhile action. Going to court has always cost me more than the amount of the debt when I factor in my time. I will do almost anything to avoid this as it is awful... At a certain point it becomes a principal issue and you have no choice.
I probably write off about 1% - 2% a year as bad debt. My father is a veterinarian he writes off 10% or more per year.
- Location
- Longmont, CO
The only "late" payments are from HOA's and commercial accounts.
In their terminology, it's called "Net30". So, it's not technically late, it's just delayed for us to receive. I hate playing by their rules.
In the regular world, I've never had to wait more than a week. In the regular world we make the rules as to when they pay.
In the regular world, I've never had to wait more than a week. In the regular world we make the rules as to when they pay.
rfwoodvt
New member
- Location
- This side of eternity.
Jamin,
The vendor has every right to say Net 0, net 10, Net whatever. The rules should really be yours, not theirs unless you agree to them ahead of time in your contract.
We simply state that payment is due at time of service. With a $10 late fee accruing for every 10 days the balance is overdue.
We have told commercials and HOA's from the get go, No check or check writer waiting for us no work plus a $200 service fee for showing up. Want us to show up again, 50% no-refund deposit. Make the same mistake twice Prepaid only.
Most of the slacker companies wont hire us and the quality ones have no problems with it. In fact, we end up relaxing for the quality ones.
The vendor has every right to say Net 0, net 10, Net whatever. The rules should really be yours, not theirs unless you agree to them ahead of time in your contract.
We simply state that payment is due at time of service. With a $10 late fee accruing for every 10 days the balance is overdue.
We have told commercials and HOA's from the get go, No check or check writer waiting for us no work plus a $200 service fee for showing up. Want us to show up again, 50% no-refund deposit. Make the same mistake twice Prepaid only.
Most of the slacker companies wont hire us and the quality ones have no problems with it. In fact, we end up relaxing for the quality ones.
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