Business Closed Down with Outstanding Invoices

Hello There!

Curious – we had a restaurant that we cleaned every 4 weeks, they “skipped town” overnight and closed the place down. The invoice is only $200 and wondering if I should even waist my time tracking these people down. What would you do? I thought about maybe reaching out to the BBB???

They have a big leasing sign on the building…

On this type of situation I normally do not file a small claims. If they went out of business they probably have no assets to go after. Here in my town it cost about $150.00 to file a small claims and I only do that if it is a sizeable amount and I think there is a fair chance I will recover it.

I know its frustrating. But I came to the conclusion early on in business that for that amount I can either spend my time chasing that or utilize that same time to “re-earn” the amount owed. The latter is less stressful I have found and you are guaranteed the time spent will net a positive cash outcome.

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Chalk it up as a loss your not the only one they screwed. This is not uncommon in the route world. It happens , an it sux when it does !!!
I got hit for 500 once a long time ago !

That’s what we’ve decided. Not worth it! Here’s another one for you —- construction accounts or realtors who own large shopping centers… why is it so difficult for them to pay on time?!? We’ve got thousands in unpaid invoices. Would it turn them off if I required a credit card up front? Job needs to be paid upon completion.

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Unfortunately, places going out of business when they owe you money is just part of owning a business.

For realtors or managers, you can tell them your payment terms when you set up the account. As in, our terms are Net 30, and we add 1.5% to the bill after 30 days.

We always offer to our slow paying customers that they can put a credit card on file. Present it like it’s a convenience for them, not for you. “Would it be simpler for you to just put a CC on file with us, and then you never have to think about these invoices again?”

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Fuggedaboudit…

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This is great insight. Love the idea of adding 1.5% BTW all outstanding invoices magically got paid today :raised_hands:t3: It was a glorious day!

We put a late fee in invoice if paid after certain date. And with pain customers that are slow I put a discount if paid within a day. Works like a charm.

Far as company closing, save your invoice and have your accountant write it off as a loss

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I like that idea of offering an early pay discount to your slow paying customers. Clever.

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It’s definitely better than have zero idea of when payments would be in.