# DEADBEAT CLIENT



## snowplowking (Jan 11, 2020)

I have this customer who pays via net30 every 30 days or so, now, with the pandemic or whatever you want to call it, haven't been paid in over 45 days. I also have them as a summer customer for Landscaping always late but always pays. Question is do I keep plowing, stop, blackball them and tell every company that I know that they don't pay. The money they owe is not a ton but it's adding up. Any readable advice appreciated, also being that most big company are corps or LLC do I bring a suit against them and will I even get anything ultimately


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## Hydromaster (Jun 11, 2018)

What does your contract say about payments
And service?


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## snowplowking (Jan 11, 2020)

Lots of things they are in default I can charge interest or take them to court


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## Hydromaster (Jun 11, 2018)

What does your contract say about it


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## BUFF (Dec 24, 2009)

snowplowking said:


> I have this customer who pays via net30 every 30 days or so, now, with the pandemic or whatever you want to call it, haven't been paid in over 45 days. I also have them as a summer customer for Landscaping always late but always pays. Question is do I keep plowing, stop, blackball them and tell every company that I know that they don't pay. The money they owe is not a ton but it's adding up. Any readable advice appreciated, also being that most big company are corps or LLC do I bring a suit against them and will I even get anything ultimately


Based on what you said its a commercial account?
If so let them know they're delinquent and need to get up to date so services aren't suspended until they're current.
Depending on the type of business quite of few company's are having cash flow issues and pushing oot payments.


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## Hydromaster (Jun 11, 2018)

For being 14 days late?


Anyone can sue anybody over anything.

But the judge is going to ask you about your contract and what it says in the terminology for a late payment and what happens, so what does your contract say?


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## STARSHIP (Dec 18, 2000)

snowplowking said:


> Lots of things they are in default I can charge interest or take them to court


Start with a (polite) delinquency notice, included with the bill that has the finance charges added to it. We all have bills to pay, and most of us don't want to be the banker or in the business of giving out loans.


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## Mark Oomkes (Dec 10, 2000)

Hydromaster said:


> For being 14 days late?
> 
> Anyone can sue anybody over anything.
> 
> But the judge is going to ask you about your contract and what it says in the terminology for a late payment and what happens, so what does your contract say?


So you're wondering what his contract states?


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## snowplowking (Jan 11, 2020)

Hydromaster said:


> For being 14 days late?
> 
> Anyone can sue anybody over anything.
> 
> But the judge is going to ask you about your contract and what it says in the terminology for a late payment and what happens, so what does your contract say?


Sorry they are 65 days late not 45. If they are over 30 days late I can suspend service, interest, attorney fees etc don't have it with me I'm on break, there is one or 2 invoices from fall cleanup as well so definitely in default. Around here we can take them to district court or county court. However doesn't matter what it says I need to know if I should suspend service, or go straight to court and probably not see a dime


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## snowplowking (Jan 11, 2020)

STARSHIP said:


> Start with a (polite) delinquency notice, included with the bill that has the finance charges added to it. We all have bills to pay, and most of us don't want to be the banker or in the business of giving out loans.


Any samples you are using or have? Thanks


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## snowplowking (Jan 11, 2020)

BUFF said:


> Based on what you said its a commercial account?
> If so let them know they're delinquent and need to get up to date so services aren't suspended until they're current.
> Depending on the type of business quite of few company's are having cash flow issues and pushing oot payments.


It's a chain restaurant I know they were having issues like everyone else but enough is enough I'm a small business I need to be paid thank goodness my other accounts are currently on time


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## Hydromaster (Jun 11, 2018)

snowplowking said:


> Sorry they are 65 days late not 45. If they are over 30 days late I can suspend service, interest, attorney fees etc don't have it with me I'm on break, there is one or 2 invoices from fall cleanup as well so definitely in default. Around here we can take them to district court or county court. However doesn't matter what it says I need to know if I should suspend service, or go straight to court and probably not see a dime


You can stop service for one day late and You could be in violation of your own contract. So what does your contract say about non-payment ?
does it say when you will stop service if you do not receive payment within X number of days?

if you have a contract, but it doesn't sound like you have a contract.

Judge is going to ask you about all of these things also and yes you could get the money you're owed plus interest after you win your case.
the judge will order the sheriff to go into the bank account and take the money if there's no money in the bank account you put a lien against the business and when they sell the equipment you will be in line to get paid.

You will sue the business and the business will send a representative to court .

Ps It's not out of the question to be net 90.


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## Hydromaster (Jun 11, 2018)

Mark Oomkes said:


> So you're wondering what his contract states?


Yes.


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## Samdog1969 (Jan 1, 2020)

Have you spoken to them about them being past due? Sometimes it’s as simple as a phone call to find out if this is a short term issue...but you mentioned that they are lathe with payment in the summer months as well..some people are bad with paying bills due to not having a dedicated payables person/group and they have a hard time running the financial side of owning a business....or they are the type of person/company that will milk all their vendors til they are forced to pay. I personally stop working for the latter or i mark up anything we do knowing that it will take 45-90 days to get paid. prior to starting my business I worked for 1 of the largest mutual fund companies in the world...make billions of dollars of profit a year...and i would have to call 3-7 local pizza houses that we had charge accounts with when I wanted to get pizza for my team...these tiny mom and pop places would tell me that they haven’t been paid in 3/4/5 months...hundreds of dollars and they couldn’t get paid. Rumor was that the thinking was that most people will go stop asking for money...the way that I would handle it is as follows: call to tell them that they owe you money. If they say they will pay, tell them that you will come down to pick up the check today/tmrw if they are local...if they are out of your area-overnight me a check...if they push back, inform them that you are verbally terminating your plowing services(make sure you check the terms if you have a signed contract-that may alter what you can legally do) and then email them a notice of termination if you have their email address...if you do not, pay the few bucks and send them a letter that requires their signature. Most times they will pay when they are called out and then you can decide if you want them back next season or this summer for you...if they don’t pay, you don’t want to waste any more time or money for them..easy to say tough to do...only you can make that call cuz only you know what you can afford to write off..sometimes the threat of suing will work but if you are shady it probably won’t...hope this helps...


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## Hydromaster (Jun 11, 2018)

You cannot alter a contract without both parties signing it.(again)

If you’re going to do it verbally you better record the call & tell the people they’re being recorded.
It should be handled in writing.

Judges hate , he said she said arguments.


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## snowplowking (Jan 11, 2020)

Hydromaster said:


> You can stop service for one day late and You could be in violation of your own contract. So what does your contract say about non-payment ?
> does it say when you will stop service if you do not receive payment within X number of days?
> 
> if you have a contract, but it doesn't sound like you have a contract.
> ...


When I'm done with owing and salting I'll look when I get back to my office, not sure why you think that I don't have a contract but I don't do business without one, I have different contracts for different residential and commercial properties there no way I can remember


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## Hydromaster (Jun 11, 2018)

Just so I understand stand 
every residential customer and every commercial customer has a different contract?
so if you have 100 customers, youhave 100 different contracts with 100 different payment clauses?

But yeah, what your contract says is what you need to go by.


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## STARSHIP (Dec 18, 2000)

snowplowking said:


> Any samples you are using or have? Thanks


We've used a template like this, and filled in the blanks, then eliminated or tweaked some of the wording to fit what we wanted to say. I had to save it in .txt format, so it's a little clunky.


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## BUFF (Dec 24, 2009)

snowplowking said:


> It's a chain restaurant I know they were having issues like everyone else but enough is enough I'm a small business I need to be paid thank goodness my other accounts are currently on time


Restaurants and bars have been the worst affected by COVID and somewhat understandable why they're late paying you. They're more than likely paying suppliers that are crucial to the day to day business and puts you to the back of the buss.
If they've been a good customer and you've had them for a while I'd suggest you try to work with them to get current.


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## WIPensFan (Jan 31, 2009)

Best thing to do right now is call and talk to someone in accounts payable or whoever handles paying the bills. See why you haven’t been paid and try to work something out. If they refuse, I wouldn’t do anymore work at the account. Let them know that will be the case, if all other options are ruled out. Most likely you will have a better understanding of their situation and reasoning for being late. Unlike me... stay calm and professional. It will work out.


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## Mr.Markus (Jan 7, 2010)

BUFF said:


> Restaurants and bars have been the worst affected by COVID and somewhat understandable why they're late paying you. They're more than likely paying suppliers that are crucial to the day to day business and puts you to the back of the buss.
> If they've been a good customer and you've had them for a while I'd suggest you try to work with them to get current.


The whole covid thing is screwing these guys hard. Last season I waived my local diners last payment, it was a $2k payment.
To watch them go from being busy all the time to closed doors without having any fault or say in the matter is hard to watch, they employ some great people.
I agree a conversation needs to take place and the tone of that conversation on both sides will warrant whether or not it needs to be litigious. I doubt it, you already suggested they are "slow pay" not "no pay" and they have been clients awhile.


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## Hydromaster (Jun 11, 2018)

Deadbeats.

There are a millions of sad stories.
And your company could become one of them.

I’m surprised we haven’t heard more stories of customers from residential to commercial who haven’t been paying .

Run down and file a small claims, when they get the notice in the mail I’m sure you’ll have their attention. Because if things are going that bad There will be other people standing in line waiting to get paid also.


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## jonniesmooth (Dec 5, 2008)

We just had our attorney write a notice of lease violation,termination letter. 
I'll be happy to let you know what it cost when the bill comes.

Non communication is worse than non payment.


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## Randall Ave (Oct 29, 2014)

Mr.Markus said:


> The whole covid thing is screwing these guys hard. Last season I waived my local diners last payment, it was a $2k payment.
> To watch them go from being busy all the time to closed doors without having any fault or say in the matter is hard to watch, they employ some great people.
> I agree a conversation needs to take place and the tone of that conversation on both sides will warrant whether or not it needs to be litigious. I doubt it, you already suggested they are "slow pay" not "no pay" and they have been clients awhile.


I plow a small dinner, probably is into me after today for about a thousand, which I no is very little. He is barely making ends meet. The covid, or really the Goverment has killed the dinner/restaurant trade. So we are trading things off. Anyone one want to go to breakfast? To the OP, if you are concerned, if per your contract you can stop service, then do it if thats the road you want to take.


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## BadMechanic (Dec 21, 2020)

Its just concerning that they havent made any attempt to contact and try to find a payment that works. Instead, hope you dont notice and they skate by longer.

Go get em, Tiger.


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## jonniesmooth (Dec 5, 2008)

Randall Ave said:


> I plow a small dinner, probably is into me after today for about a thousand, which I no is very little. He is barely making ends meet. The covid, or really the Goverment has killed the dinner/restaurant trade. So we are trading things off. Anyone one want to go to breakfast? To the OP, if you are concerned, if per your contract you can stop service, then do it if thats the road you want to take.


It's the communication that's critical.
I lost my biggest winter account this year.
Well, not really.
It's a long story.


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## BUFF (Dec 24, 2009)

BadMechanic said:


> Its just concerning that they havent made any attempt to contact and try to find a payment that works. Instead, hope you dont notice and they skate by longer.
> 
> Go get em, Tiger.


To be clear the communication on their part sucks. On the flip side invoices for lawn care and snow removal takes the back seat to paying your supply chain. Withoot a supply chain for items that generate income daily the other invoice take a back seat until the squeaky wheel speaks up. Imo both party's appear to be at fault for not being proactive.


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## Kinport (Jan 9, 2020)

Maybe I missed this, but what have your collection efforts looked like so far? Have you called and spoken with your contact for the company and let them know you haven’t seen a check? It’s very possible the check got lost, the invoice never got to the right person, or any number of other things that can happen at the corporate level that would prevent you from receiving a check, as opposed to them simply refusing to pay you. Many of our clients are chains and we send invoices to a corporate office in another state and there’s been a number of times where someone on their end dropped the ball and our check never got sent. A few minutes on the phone might resolve all of this.


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## BUFF (Dec 24, 2009)

Kinport said:


> Maybe I missed this, but what have your collection efforts looked like so far? Have you called and spoken with your contact for the company and let them know you haven't seen a check? It's very possible the check got lost, the invoice never got to the right person, or any number of other things that can happen at the corporate level that would prevent you from receiving a check, as opposed to them simply refusing to pay you. Many of our clients are chains and we send invoices to a corporate office in another state and there's been a number of times where someone on their end dropped the ball and our check never got sent. A few minutes on the phone might resolve all of this.


No disrespect to the OP but in his part of the country to path typically taken is to fester abbot things then sue or take a few pounds of hide to get paid rather than drawing a line in the sand and try to work towards a solution that works for both parties.
I could and probably waaaay off base by saying that since things are a little difference t ootwest and I try to think the best.


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## racer47 (Feb 24, 2011)

when it snows put them- their sites on back burner, drive right by. do who is paying the bills ,when they call you ,tell them that they are way behind on their end and you will get to them after your paying customers get done, if you have time and any gas or salt left .been their before .worked for me


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## Mark Oomkes (Dec 10, 2000)

BUFF said:


> No disrespect to the OP but in his part of the country to path typically taken is to fester abbot things then sue or take a few pounds of hide to get paid rather than drawing a line in the sand and try to work towards a solution that works for both parties.
> I could and probably waaaay off base by saying that since things are a little difference t ootwest and I try to think the best.


So apparently the OP could take the time to post and complain but not call the customer...unless I missed him answering this question that was axed of him several times.

I don't understand that in the slightest...it isn't like we're going to pay him for the work he did for them. Do we all complain about late or non-payers? Sure...but how many of us have already exhausted the options to get paid? Before posting about it.

Midwest, Oot West, etc. People are different. Sure wouldn't start a thread about an alleged deadbeat client without talking to them first. So many good points have been made...invoice not to the right person, lost check, heck with the number of people working from home due to the Covid, any number of things could have happened. In addition to getting screwed over by stupid governors that are trying to kill small biznesses.

I'm thankful that we can work at 100%, can't even imagine these restaurants trying to survive on takeout and/or 25-50% capacity. And then these idiot politicians still wanting their property taxes paid in full, etc.

OP....CALL THEM.


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## Mudly (Feb 6, 2019)

Mark Oomkes said:


> So apparently the OP could take the time to post and complain but not call the customer...unless I missed him answering this question that was axed of him several times.
> 
> I don't understand that in the slightest...it isn't like we're going to pay him for the work he did for them. Do we all complain about late or non-payers? Sure...but how many of us have already exhausted the options to get paid? Before posting about it.
> 
> ...


So we can close this duplicate thread then?


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## Mark Oomkes (Dec 10, 2000)

Mudly said:


> So we can close this duplicate thread then?


Go ahead...lol


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## Chineau (Aug 24, 2010)

waiting for dinner to be delivered couple beers read most of this, send them an interest statement you owe x plus interest. you have a credit card, you don't pay you pay more.
this will generate a phone call " I did not agree to interest, yes and I did not agree to finance your winters snow clearing."
after you have sent the statement you might consider phoning to confirm they have received it, my experience has been they start to call when it costs more.
I get aggressive about this, I pay my bills and taxes it is not an unreasonable expectation for others to perform the same.
get em.


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## Luther (Oct 31, 2007)

snowplowking said:


> When I'm done with owing and salting I'll look when I get back to my office, not sure why you think that I don't have a contract but I don't do business without one, I have different contracts for different residential and commercial properties there no way I can remember


Why are you complaining and posting about a deadbeat client who is 65 days past due while you are out plowing and salting? Why are you continuing to service them? Why don't you know your contracts? You might want to re-evaluate your account management skills, and your lack of communication to the client.


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## Randall Ave (Oct 29, 2014)

I am a very small truck repair business, but I do some repairs for a very large freight company, just got some invoices straightened out from last September. The invoice numbers and the POs did not match, now I can't see that on my end, but it took me quite a few E mails to get it resolved. The point is you have to reach out and communicate with the customer, just stewing about it will get you nowhere.


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## PLOWMAN45 (Jul 2, 2003)

can you call the customer directly get paid and dont go back


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## fireside (Mar 1, 2008)

My contracts call for 15 day payments for snow 30 you are late. I send another bill is late fees so on. At 40 days another letter breach of contract letter sent certified mail with 5 days to respond at that point all services terminated. Just a word of caution in my state you need to give them 5 days to respond prior to termination of contracts. If you don’t service in those days you are still liable for injuries from neglect


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## PLOWMAN45 (Jul 2, 2003)

well that should be theft of service


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## Chineau (Aug 24, 2010)

PLOWMAN45 said:


> well that should be theft of service


any body any where know where that is actually law?
a couple years ago person tried to beat me for 75 dollars, I went down to the local r.c.m.p and said hey this person hired me for x work and no pay. officer say I'm not sure there is a law but I will take your statement and then speak to the person about theft of service charge. long story short they paid, if you get a good cop and have your ducks in a row it might work.


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## Mr.Markus (Jan 7, 2010)

In case you are wondering where it is you are on the totem....remember that Lady Gaga is offering $500k for the safe return "no questions asked" of her dogs and not for the capture of the person who shot her dog walker....ABC


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## Chineau (Aug 24, 2010)

thats messed up!


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## Hydromaster (Jun 11, 2018)

Dog lives matter


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## Chineau (Aug 24, 2010)

indeed they do, when my baby gina chocolate lab was alive someone mess with her I would gleefully mess them up and hide the evidence with my mini ex but your people?
no love like a dog, miss her.


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## m_ice (Aug 12, 2012)

Mr.Markus said:


> In case you are wondering where it is you are on the totem....remember that Lady Gaga is offering $500k for the safe return "no questions asked" of her dogs and not for the capture of the person who shot her dog walker....ABC


Lady gaga supports biden...enough said


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## Chineau (Aug 24, 2010)

what is the relationship their, didn't trump party with the dude who hung him self in jail on weird jiggy stuff.
remember twain.


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## BadMechanic (Dec 21, 2020)

Can always get a new dog walker, harder to replace your dogs.


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## 1olddogtwo (Aug 6, 2007)

Late to the game.

Common sense should apply here.


For the last year, many different parts of the commercial world have been clamoring about surviving in the Covid. Restaurants are one of the hardest one hit.

What were you thinking?


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## fireball (Jan 9, 2000)

So Olddogtwo are you saying that Chinese restaurants should locally source their dog meat in o order to survive pandemic?


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## Philbilly2 (Aug 25, 2007)

snowplowking said:


> Any samples you are using or have? Thanks


Here is what I have said before on other threads like this in the past.

If you need a conversation starter, use the line "I am in the process of cleaning up my books for _____________ (make up a reason ex: taxes, fiscal year, audit, what have you) and I noticed that you still have a few open invoices. Can you do me a favor and check to see if these have been paid on your end and we just have a clerical error on our end?"

If the invoices were forgot or missed by AP, this will typically get them taken care of.

IF this does not fix your issues, go to a polite insult. Send a statement with a hand written note on it that reads. "I am noticing that you are xx days past due on these invoices. Can you please get this account satisfied, if you cannot afford to pay your bill, please contact me personally and we would be happy to put you on a payment plan."

Most of the time, this will get you paid up as people will get the "of course I can afford that bill"

If they in fact cannot, then hopefully you can work with them and get them on a payment plan.


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## 1olddogtwo (Aug 6, 2007)

fireball said:


> So Olddogtwo are you saying that Chinese restaurants should locally source their dog meat in o order to survive pandemic?


If my Newfie eats anymore drywall, I'm going to drop him off personal.

He's 180, should get a good Chinese buck and a couple of fortune cookies for his fat azz.....


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