# Collecting on Accounts



## Chief Plow (Dec 12, 2001)

Everyone,

I am new to posting here... I have question, that I need some advice on. I am in the 2nd year as an official business. I have 6 quick mart accounts, 3 from one franchise 3 from another franchise. One of the franchises pays cash each time I submit my invoice to the store. The other franchise, gave me a fax sheet of exactly how they wanted to be billed. They want to have the invoices sent to them within 10 days of the date you plowed or did work for them, then any invoices after that are considered late, and they dock the invoices 10 percent penalty. My question is, I am going on 16 days with out payment, how long should I wait before I send them a friendly reminder, and second should I charge them a late fee, and if so how much? Is this the norm dealing with big franchises? I have never had this problem before, I guess I was lucky that everyone paid cash.

Thanks in advance for any help,
Merry Christmas all...
Chief Plow


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## CT18fireman (Nov 30, 2000)

If they are going to give you a penalty for being late then I would do the same for them. I would say after 15 days, this allows for them to receive, process and return the payment. There is nothing really unusual about businesses having certain methods of billing. Don't let them abuse the relationship.

Whatever you do you should be sure to explain it and to have everything written out. This way there is no debate.


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## plowjockey (Dec 3, 2000)

By all means give them an appropriate ammount of time (15 days is what I use also) and print the date due clearly on the bill.
I'm not really clear on the charging you for the bill being past a certain ammount of time since they contracted for a price to do a job. Was this something you agreed to before the contract was signed or did they throw it in later.

Bruce


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## CT18fireman (Nov 30, 2000)

I did not like how that sounded either. I bill my work monthly. In the winter I will bill plowing twice a month if it is a busy winter. This is so that people are not slammed with a large bill. Businesses have 15 days Residents have 30 unless a seperate agreement has been established. I always add a late charge and will stop services. First they get a phone call, then a letter. Plowjockey is right always put the date of the service and of the bill.


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## Rob (May 15, 2001)

I almost find that humorous. The client / customer will charge the company that did work for them a penalty for not billing soon enough ?  
If they are going to hold you to 10 days to bill, then by all means I would hold them to the same 10 days (from the time you sent the bill) to pay, or they will be charged a 10% late fee. Actually, seems like a rather hostile arrangement. I only do a small number of residential accounts compared to most on this site, but I bill monthly and give net 25 days to pay before applying a late fee, and have rarely had to use it.


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## Mick (May 19, 2001)

Along this line, I got two residentials just this week asking to be billed monthly. My agreement was to submit a bill on the last day of the month, due in ten days. I'd never thought of a fee for submitting a bill late. I guess it could happen. I agree with Rob, sounds like a hostile arrangement. Especially wanting a bill for each plowing within so many days.


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## Plow Meister (Oct 16, 2001)

Chief,

After reading this thread I am totally curious as to the outcome of your dilema. When you get paid, please fill us in on the details, especially about the "late payment" issue.


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## Chief Plow (Dec 12, 2001)

To All,

My Situation has been resolved..... The franchise that was late in paying, finally paid. It took them 19 days to pay, but they did pay.
I called the accounting department, and poked a few questions at them. Finally, we came to an agreement, if my invoice is not submitted within 10 days ( Which it will be, I want to get paid...)
I will be docked 10 percent of the invoice. In return, I got them to agree to ( In writing ) that if they are later than 10 days in their payment, I will bill them a late fee of 10 percent of the invoice. I think this shouldn't be necessary on either behalf, but maybe it is the cost of doing business with a big corporation....
Thanks for all the replies.... P.S. They did enclose 10 percent for being late in payment...

Thanks all,
Chief Plow


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## Plow Meister (Oct 16, 2001)

Congrats on getting paid. I think it is very unusual to be docked for not getting your bill in on time. However, if that is the way they want to play ball than so be it. Glad you got the 10% in your favor this time.


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