One of the most aggravating things about collecting for services rendered.
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Yeah, I’ve got a problem client that is always dragging their feet on paying. Their statement this month will include a note that I’ll be charging 15% late fee after 30 days from the date on the invoice. Then, by all means drag your feet. 
If they don’t like it, I’ve got a lawyer who would be happy to do collections for me. She’s awesome.
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It seems to be a sign the company isn’t doing so well if their AP can only operate 30 or more days out for payment.
I don’t even entertain a thought of doing business with folks who want the work done but make you wait to pay for services rendered. It is not like we are the electric or phone company.
Payment due upon completion, or for convenience - 10 days. More than enough time to tell payroll to cut a check.
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Not in this case, they’re doing millions every year. I do five stores and they’re opening another one this week. They’re high profit jobs and with a nice late fee, it’s not too bad.
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We do Net 10 billing. Usually get paid within 15-20 which is what we are really shooting for. We also get service agreements for anything over $500 on commercial.
Service agreement sounds good. I don’t care to wait more than two weeks to get paid. So far I have a few Commercials that pay either same day or within 10 days and I’m a cool clam with that. Fired a restaurant that was unwilling to pay until after 30 days, which turned into 35/40 days, after agreeing to pay upon completion.
I almost lost a $200 a month gig for three locations of one of my customers. She wanted to pay once a month when all 3 were completed. Obviously I wanted paid on completion. What I finally figured out, is she only wanted to pay once a month. She already gets credit from someone and pays them once a month. Your preapproved I told her. I’ll put your credit card on file with Square and run it once I’ve checked in with you receptionist at each office. Works great for both of us. I already went the route of 30 day net slow payers. They got fired once I got my check. Life is too short.
Any multi location accounts we do get their all their services done and then we bill them at the end of the month.
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I didn’t mind anything net as long as I get paid before the next service
So if it’s a monthly it has to be a net 10
I have quartiles that are Net 30. No big deal to me. I have had them for many years they always pay that’s what’ is important To me. I never have to call the AR department check is like clock work
I wouldnt want 40 percent of my business line this as long as it’s a handful of jobs no big deal
Perhaps I should have charged a fee for after 10 days, and a larger fee for waiting 30 days to process, which made 40 for payment.
I find no incentive for extending credit.
(Cubs 2 in the second!)
Im Watching. 
Ya if someone is net whatever, an it’s something that bothers you… ya have to make it worth your wild , so instead of 250 make it 325, first question you ask with anything commercial is what is your net so .the biggger the net the more you tack on. … 
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Credit is something we rarely extend, especially to commercial accounts. Payment terms are part of every contract we write and are strictly enforced. Credit costs money and I quote 2 prices for every commercial account. I will not chase a customer around for money
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I guess you don’t do much commercial ?
And why are you Chasing if it’s net 15 the check usually comes in the mail.
This guy cut the check one day before the next service. Somebody else’s headache now. 
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Pretty cool article.
For the last five or six years now I don’t care WHO they are the first time we do any kind of work for anyone its payment upon completion. Trust me, I was so worried that it wasn’t gonna work and I’d loose my had on that I put it into action when I was extremely busy and really didn’t need the work, and the client was Lockheed Martin!
They agreed.
After the first time I will do a net 30 but I don’t like it.
Most of my commercial clients pay within 2 weeks.
I DID loose one of my biggest clients over this issue tho. They said they wanted to go with a bigger company.
That stung. But oh well. I don’t got it like that.
I’ve also been bullied into taking the net 30 payments as well, and they ALWAYS came in late.
As far as charging interest, I tried it on a late invoice and they just never paid the invoice period and had to put them in collections. They still haven’t paid to this day.
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Stories like that convince me that I don’t want to entertain Net 30 terms. Doctors visit, you pay at time of service; Car goes to the garage, you pay at time of service - why make the small business guy have to wait and wait to get paid? If they would rather go with a company large enough to not need the money in a timely manner then so be it. The advantage of a small business is the personalized service.
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Unfortunatley, its called leverage and most large companies that deal it terms know they have it
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I guess that I am a stand your ground kind of guy.
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Me too. F your major corporation. Especially if your gonna pee down my leg and tell me its raining.
