# Advice for slow paying customers...



## Hoosier_Fan (Feb 19, 2017)

Hey guys I'm hoping I could get some advice (fishing lesson) from you all. 

This is my first year doing snow removal. I service 2 auto parts stores in my area for a large company (don't know if it matters if I say who specifically but I dont want to slander them).

So far I've only sent 4 invoices 2 in Nov. '18 and 2 in Jan. '19 (1 invoice per store each month). In the contract it states invoices will be paid within 30 days of the date the invoice was sent. The Nov. invoice was 10 days overdue, I contacted them and it was sent out that day, I received payment the next week. The invoice I sent for Jan. '19 is now 4 days overdue, I haven't contacted them yet but will shortly. 

I was wanting your guys' input on what I should include in the email. I want to say something about the consistent late payment but dont want to go overboard with it either. Or if I'm just overreacting to the whole thing? I'm just starting to get tired of slow/late pay from other customers, people I sub for, etc... 

FWIW, the first payment totaled $350 and some change, this current payment totals just over $2200

Thanks everyone.


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## BossPlow2010 (Sep 29, 2010)

Good cash flow is key I get it. But many companies (especially big ones) take a lot longer than 30 days to process invoices and submit payments, it sucks but it is what it is.
You could consider initiating a late fee, but you may get some flack over it, so be prepared to not get a signature or want them to null that fee.


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## cjames808 (Dec 18, 2015)

I would hold any other services, Make sure you call or stop in to tell them this. 

Even walk in to hand deliver the "Past Due" invoices. 

Stoppage in service email could help also.


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## Ajlawn1 (Aug 20, 2009)

Hoosier_Fan said:


> Hey guys I'm hoping I could get some advice (fishing lesson) from you all.
> 
> This is my first year doing snow removal. I service 2 auto parts stores in my area for a large company (don't know if it matters if I say who specifically but I dont want to slander them).
> 
> ...


So are you working for a large national service provider I assume doing these two auto parts stores?


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## BossPlow2010 (Sep 29, 2010)

cjames808 said:


> I would hold any other services, Make sure you call or stop in to tell them this.
> 
> Even walk in to hand deliver the "Past Due" invoices.
> 
> Stoppage in service email could help also.


What?!
For being 4 days overdue?!
That net 30 on the top of the invoice is just a number, it's not Law of the land! 
As I mentioned above an incentive to pay ontime, but don't stop services just because you're not getting paid within 30 days, unless that is what's already in your contract which is pretty strict.


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## Randall Ave (Oct 29, 2014)

I wish I could get paid in 30 days. Just o what you did last time. Reach out to them and ask for a payment. I would not cut off services just yet.


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## Mr.Markus (Jan 7, 2010)

It's a secret...but I'll let my customer go another 30 days from the due date before I say anything. Usually by that time they are getting a third bill and the guilt gets to them, that 3rd bill is usually hand delivered for good measure just cause I believe in making face to face contact once in a while to tell them how much I appreciate them...


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## dingybigfoot (Jun 12, 2008)

Part of the game. It's common to receive March cheques from our slow pay year round clients in June.


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## SHAWZER (Feb 29, 2012)

I hand deliver all my invoices in town . Most pay 10 -30 days later .


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## leigh (Jan 2, 2009)

If you're working for a "broker", "management company" you'll just have to live with it. Any contract has absolutely no bearing on them. It's the nature of the beast. Some seem to get paid in a reasonable time frame, others seem to have big issues. You're just a small fish to them, you have zero leverage. That being said it doesn't hurt to keep proactive with them ,an email takes a minute to send.


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## Hoosier_Fan (Feb 19, 2017)

Ajlawn1 said:


> So are you working for a large national service provider I assume doing these two auto parts stores?


I dont think they're as big as a typical national like ferrandino and others like them, but yes they are pretty much a national, they're out of Michigan, I know they handle alot of the AA stores from MI, down to KY, OH and some farther east in PA I believe.


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## Mr.Markus (Jan 7, 2010)

SHAWZER said:


> I hand deliver all my invoices in town . Most pay 10 -30 days later .


My customers in NY and Florida wouldn't see their invoices till the spring.
Lol


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## SHAWZER (Feb 29, 2012)

I have a few like that too . Few with head office in Toronto and California are slooooow paying .


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## SHAWZER (Feb 29, 2012)

Do you hand deliver to Florida in the spring ...... ?


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## framer1901 (Dec 18, 2005)

Hoosier_Fan said:


> I dont think they're as big as a typical national like ferrandino and others like them, but yes they are pretty much a national, they're out of Michigan, I know they handle alot of the AA stores from MI, down to KY, OH and some farther east in PA I believe.


I know who you're talking about, I think, start with an E?


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## Hoosier_Fan (Feb 19, 2017)

BossPlow2010 said:


> Good cash flow is key I get it. But many companies (especially big ones) take a lot longer than 30 days to process invoices and submit payments, it sucks but it is what it is.
> You could consider initiating a late fee, but you may get some flack over it, so be prepared to not get a signature or want them to null that fee.


That's what I had figured but the only thing about it that kind of irritates me is that I signed their contract that states they are supposed to pay within 30 days of receiving the invoice.

But like you said it is what it is, I'm starting to figure out that comm. work in general is much different than residential!


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## Ajlawn1 (Aug 20, 2009)

framer1901 said:


> I know who you're talking about, I think, start with an E?


I thought maybe a BIG O then a little o....


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## Hoosier_Fan (Feb 19, 2017)

framer1901 said:


> I know who you're talking about, I think, start with an E?


Yes, I talked with the owner?/higher up over there trying to get the ball rolling with pricing, insurance info, etc... seemed like a really nice guy and people over on bookface vouched for them/him so I felt better about working with them vs. Some of the other nationals.


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## dingybigfoot (Jun 12, 2008)

And some of them will use administration tactics to prolong sending your cheque. "Oh we want your logs."
"We need the weather conditions with your logs."
"Send us your clearance certificate."
"Send us your health and safety policy."
Be on your A game..and send out your invoices like clock work without delay.


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## Ajlawn1 (Aug 20, 2009)

Hoosier_Fan said:


> I dont think they're as big as a typical national like ferrandino and others like them, but yes they are pretty much a national, they're out of Michigan, I know they handle alot of the AA stores from MI, down to KY, OH and some farther east in PA I believe.


Yeah like others have said it just depends how far you want to push it... You are obviously not going to go into any of the stores and get anywhere as they most likely have no clue... But it's only a few days I wouldn't sweat it and just hang tight... If you get toward the end of the month then start the phone calls continuously...


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## Mr.Markus (Jan 7, 2010)

SHAWZER said:


> Do you hand deliver to Florida in the spring ...... ?


I send my wife...
My customers in NY are the fastest paying. They use email transfers and it's kinda funny cause I still print all the invoices but send them by email as well. Their payment regularly dings my email before the printer stops.


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## cjames808 (Dec 18, 2015)

BossPlow2010 said:


> What?!
> For being 4 days overdue?!
> That net 30 on the top of the invoice is just a number, it's not Law of the land!
> As I mentioned above an incentive to pay ontime, but don't stop services just because you're not getting paid within 30 days, unless that is what's already in your contract which is pretty strict.


I cudnt read. I thought he wasn't paid since November lol. 30 days no biggie by then you are sending another invoice and starting on a third month unpaid. I send reminders after three weeks and four weeks. PAST DUE EMAIL


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## Philbilly2 (Aug 25, 2007)

4 days...  I think you are getting all lathered up over nothing.

Here is what I do when an invoice gets way out there:

send another invoice with a note on it saying “if you cannot afford to pay your overdue invoice in full, please let us know so we can work out a payment plan to get this settled” - 9 out of 10 times the check shows up.


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## Freshwater (Feb 28, 2014)

Waiting on money sucks. 4 days late however Is really a non issue.

I sub for a guy, we do a number of locations for a bigger Corp. We've been doing them for years. Theyre usually 30-45 days out, sometimes sooner, never an issue. This year they got way behind, yes I was a little pissed, but we kept servicing without a second thought. 
Just got a check a couple days ago, met my contact at a bar owned by one of the higher ups of the Corp, got to meet and have a beer with a couple of the decision makers. 
The problem was they changed policy from the central office approving invoices, to each location approving invoices. The computers wouldnt let the locations approve and send the invoices back to home office to cut the checks. Had to hire a company to redo all their computers. Sounds just like some stupid glich all us business owners deal with all the time. I can imagine the management going WTF is this crap.
I'm really glad I didn't get angry and burn a bridge over something stupid.


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## Chineau (Aug 24, 2010)

When you owe money to a bank or credit card they resend the payment notice and add interest each month you owe for.
As a business when someother business is late pay resend your invoice with the interest tacked on and see what happens. 
Before you ask look at what your credit card charges and do it.
It just business.
Have a great day gotta go move some snow.


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## Hydromaster (Jun 11, 2018)

wouldn't you need to state your collection polices in your contract first, just like your CC company did when you applied for the card?


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## EWSplow (Dec 4, 2012)

Hydromaster said:


> wouldn't you need to state your collection polices in your contract first, just like your CC company did when you applied for the card?


In Wisconsin you do. Also, if you charge interest, you have to report to the department of financial institutions. 
If you charge a late fee, this also needs to be made clear beforehand, but you don't have to report to department of financial institutions. 
Interest max is 18% APR. Late fee max is 12% APR.


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## Chineau (Aug 24, 2010)

Every area will be different and perhaps not easy but if you’re running a business you learn there is no free money.
Overhead has to be covered month after month every nickel every dime you have earned the money if someone holds on to it make them pay.


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## cjames808 (Dec 18, 2015)

EWSplow said:


> In Wisconsin you do. Also, if you charge interest, you have to report to the department of financial institutions.
> If you charge a late fee, this also needs to be made clear beforehand, but you don't have to report to department of financial institutions.
> Interest max is 18% APR. Late fee max is 12% APR.


Amazing, we charge a 10% per month Late Fee in contract. It is the last term before signing and dating.


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