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how to deal with over due invoices #198842 02/05/11 07:51 PM
Joined: Dec 2009
Posts: 15
J
jimbob Offline OP
Member
i have been in busness for just over a year now, and most of my customers paid me on time .but you always run into some that you cant get them to pay even with your invoice saying {overdue accounts subject to a service charge of 2% per month}.it seems that the people you think will pay dont and the people you think wont do pay.on my quotes now i put at the bottom {any unapproved accounts 50% prepaid}.what is the best way to deal with people that dont pay you,besides small claims court which cost you more just for the lawyer,any info would be appreciated.

Business, Office, Estimating, Legal:
Re: how to deal with over due invoices [Re: jimbob] #198845 02/05/11 09:20 PM
Joined: Jun 2004
Posts: 1,273
T
Tesla Offline
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Because you're in Canada I can't make any legal points...

But there are such things as bill collectors.

In these terrible times you're going to have deadbeats, too.

If you've got a service business then you should not extend credit, period.



Tesla
Re: how to deal with over due invoices [Re: jimbob] #198850 02/05/11 10:40 PM
Joined: Apr 2002
Posts: 7,233
HotLine1 Offline
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Some local contractors associations offer collection agencies to the members. The agencies get no 'up-front' $$, but get a percentage of what they sucessfully collect. Percentages were 25 to 35%, but may be negotiated.

Quite a few ECs take payment via credit/debit cards on the spot, but there are costs associated with that, and equipment I guess. Getting paid COD style seems the best solution for service type work,


John
Re: how to deal with over due invoices [Re: jimbob] #198861 02/06/11 02:07 AM
Joined: Jul 2004
Posts: 9,569
G
gfretwell Offline
Member
These days credit cards are just an ap on your phone.
It will cost you 2% but you get your money.
You could give a cash discount


Greg Fretwell
Re: how to deal with over due invoices [Re: jimbob] #198866 02/06/11 01:39 PM
Joined: Apr 2003
Posts: 362
Obsaleet Offline
Member
Give em 10 days and they pay in 30. 50% to start.(you define start) Balance on finish(you define finish)Small jobs under $x COD or flat rate. Since I'm very small I can be flexible and go with my gut. Ones to watch out for Doctors, lawyers, small retail just to name a few. Just my opinions. Also try to work for good people. Pick your customers don't let them pick you!

Last edited by Obsaleet; 02/06/11 01:41 PM.

Choose your customers, don't let them choose you.
Re: how to deal with over due invoices [Re: jimbob] #198959 02/08/11 09:08 PM
Joined: Dec 2009
Posts: 15
J
jimbob Offline OP
Member
thanks for the insight. at least with half down it covers the material, if someone doesnt pay the remainder.

Re: how to deal with over due invoices [Re: jimbob] #198960 02/08/11 10:12 PM
Joined: May 2003
Posts: 1,155
dougwells Offline
Member
I mostly do small jobs my invoice says please pay technician today ,they see it when they sign to authorize the work

Re: how to deal with over due invoices [Re: dougwells] #199434 02/25/11 09:09 PM
Joined: Oct 2000
Posts: 5,389
S
sparky Offline
Member
just an aside about mechanics liens here. If the bank forecloses on a property, they get theirs first, anyone else in line gets what's left....

~S~

Re: how to deal with over due invoices [Re: jimbob] #199467 02/27/11 03:29 AM
Joined: Jun 2004
Posts: 1,273
T
Tesla Offline
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Sparky...

That's not the law as I understand it....

Bankers HATE mechanics liens because they CAN come first.

All liens are based upon when they are lodged.

First lodged is first paid -- period. (Normally it's the bank's. Hence the name FIRST mortgage.)

Hence, you can't get your property out of escrow until all liens have been cleared. Only then will the bank advance the balance of the funds.

Indeed, that's the whole function of escrow: it makes the lender happy.

A century ago escrow services were unknown. Lawyers handled the matter -- if it was lawyered at all.

Title/ escrow companies are virtually a post-war ( WWII ) development.

Finally 'platted land' made titles clear and secure.

It ALL turned around VA loans and their MASSIVE volume.

VA loans also triggered STANDARDS of construction.

To get a VA insured mortgage the floors had to be hardwood ( circa 1947 ) and of certain dimensions. ( i.e. not closets )

It was the VA that destroyed the market for knob and tube. Romex became VA approved.

FHA only followed the rules/ standards established by the VA.

And who was doing all of the establishing?

General Omar Bradley.

Mr. ROTC.

Mr. Organization.


Last edited by Tesla; 02/27/11 03:35 AM.

Tesla
Re: how to deal with over due invoices [Re: Tesla] #199468 02/27/11 05:32 AM
Joined: Oct 2000
Posts: 5,389
S
sparky Offline
Member
I'm told ML's are something each state modifies Tesla>

http://en.wikipedia.org/wiki/Mechanic%27s_lien

i'm unsure of any recent foreclosure legislation pertinent to this, but i'll wager who it might have favored

anyways, the GC and I were told this by a local laywer....

~S~

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