June 11th, 2004, 12:07 AM #1
- Join Date
- Oct 2001
People who don't pay their bills..?
I've had problems lately with clients who just are not into paying their bill on time - if at all. I find myself sending out invoices and being ignored. While I understand that times can be tight for any small business, they shouldn't be having the work commissioned if they can't afford it.
Any creative ways any of you guys can think of to get people to pay in full, on time?
June 11th, 2004, 12:13 AM #2
- Join Date
- Oct 2001
- Blog Entries
What are your terms? Sometimes giving terms like 2%/net15 will give people incentives to pay on time.
Also another note if you don't have a late payment policy or non payment policy in force and you keep sending monthly invoices every single month, they will automatically know that you don't enforce policies however if that on or after the 90 day past due notice that all uncollectibles go straight to a collection agency. This sometimes will also prompt people to try and pay up thier bill.
This is one of the risk of having AR accounts, you never know if you end up with uncollectables. Thus is why you need to have your policy inacted as well as late payment pentalites.
Also if this is a constant problem you can also change policy to not accept reciebables that all work is due upon completion of the job. aka: COD
June 11th, 2004, 12:56 AM #3
June 11th, 2004, 12:57 AM #4
Is burning one at the stake an option? Just video and send to the rest.
-RADAR"Men sleep peacefully in their beds at night because rough men stand ready to do violence on their behalf."
June 11th, 2004, 07:16 AM #5
I was thinking GUIDO and his BAT, Out.
BTW, I am self-employed but most of my work is contract-based. Even then I require a substantial deposit, ususally 50% and another draw before completion and balance on completion. The little service type work I do I expect to be paid on delivery or completion. And there's very few instances in which I will accept excuses for not being paid before I leave the premises.
[rant]I've been burned too many times and I have judgement papers that say people owe me enough money that I could retire on but the paper isn't worth squat.[/rant] Get your money COD unless they make arrangements before hand. And have a rebilling fine if not paid in a certain amount of time clearly printed on the invoice for those who say they need time to pay.
Last edited by TOAD6147; June 11th, 2004 at 07:37 AM.
June 11th, 2004, 08:18 AM #6
Brandon, you have to stop accepting monthly payments and personal checks. At the store I buy computer parts from, they don't give parts to people or start building unless the entire bill is paid in full. They only accept cash, interac, and credit card - payments where they know they have the money.
Anothing thing you should do is give discounts for cash payments. I know a few comp stores that do that... it's good to save $10 or $20 on a $200 item when paying in cash
June 11th, 2004, 08:48 AM #7
Brandon Depending upon the type of business, you may do well to accept American Express. Eat the 5%. Let them do the money lending.RayH42450@gmail.com
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