(what would you do(late paying customer)

[jt5019]

Ok heres the deal, I have had this commercial mowing/plowing account for about 3 years now, its a medium sized parking lot relative easy to plow.I also plow the owners home (who appears to be loaded by the porche and ferrari(sp) in his garage)I also plow his brothers house down the road from him.They usually pay me on time for the houses but the commercial account he always paid past the due date, i kinda got used to it.Well this year he now owes me for the month of december and jan with a balance over 1,000.I have sent him three notices about the december bill and still no payment.I bill monthly so the jan bill isnt really due for a few more days.Should i call him and ask why he hasnt paid for his business?I would think after three notices he knows its past due.I hate to just cut off services to him because i plow for most of his family.I also plow the lot right next to this company and i am always paid by the 15 of the month no questions asked.Should i wait a little longer,call him and see whats the deal? or cut him off(there is a ice storm coming tomorrow)to let him see what will happen. Any advice will be great.

[SunServicesLLC]

I would give him a call and see what the story is, before cutting off services.

[CAMERON SERVICES]

I would call him and tell him all services are on hold until you are paid up to date.payup

[wyldman]

A friendly phone call might just do the trick.

Stop services is the other solution.Just make sure you can document that he has been notified,in case liability issues arise.

[Mick]

I guess it depends on how you feel about it and if you're worried about getting your money. I have two people who have owed me for extended periods of time - both paid last winter's final bill at the start of this season. One, I actually told her to not worry about it till I got back up there to plow this year. On the other hand, I've had people I would send a reminder ten days after sending the bill, then a "suspended service" letter ten days after that. So I would say it all comes down to how you want to do business with this person - considering what you stand to gain or lose.

[JD PLOWER]

All the advice here is correct. Phone calls, letters and even a visit might do the trick, then again it might not. Just as wyldman posted document everything and notify them they are in breach of contract and try to keep it friendly until its time not to. A last resort might be a letter from an attorney but at that point its probably a done deal as far saving the account.

This year has been one of the worst as far as accounts not being paid quickly or even in full when due for some reason. My only guess is the economy around here has been in poor shape when it comes to commercial business nad they seem to be cutting back everywhere :mad: .

[jt5019]

Thanks for the advice..Mick i hear what you are saying,this guy has never not paid me he is just always late, i think his company deals with all ther billing at the end of the month so buy the time i get the check its past the due date.This is the first time he is extremly late.Hes a nice guy never had any problems with him.If i lost the business i would probably loose his and families lawns for summer mowing also.It just bothers me i know hes loaded, how hard can it be to pay a bill on time.I think i will have my girlfriend/secretary who has a much nicer personality:rolleyes: give them a friendly call just to see if everything is ok.

[snowjoker]

I would either call or send a certified letter to him.

[cutntrim]

I stopped reading your post half-way through, and didn't bother to read any of the replies.

GO IN PERSON AND TALK TO HIM!

Unless you are a massive company with scores of clients, I'm sure you can arrange a face-to-face. Whether or not you schedule it with him in advance is up to you.

Even a large corporation will at least get on the phone once mailed invoices go unheeded.

IT'S YOUR MONEY...GO GET IT!

Oh, and don't unload a "stone-cold stunner" on him. Be firm but courteous.

[Ohiosnow]

With another BILL IN HAND & ask what's up ;)
If he gives some bull, tell him you have bills too that need paid :cash

[Rob]

Personally.... I have a similar issue with one of my residentials. they are the first to call when it snows to find out when I am gonna be there, but by far the last to pay. I plan on waiting until the account is paid in full, then dropping them ! (This year the account was paid in full, literally the day before the first snowfall. I should have dropped them then, but hindsight is 20/20)

With that said, You say the person has always paid you and he's really only behind on one bill according to your post (Dec). You do get a lot of business from him it sounds like (him and his family). So, I would probably take a less confrontational position and wait until the second bill is actually due before I say anything to him. Perhaps if you are out for the ice storm, have a current statement on his account(s) with you in case you happen to see him and have an informal discussion with him. If the second bill also becomes overdue, I would try to follow the others advice and setup a fac to face with him.

Also, I always apply late fee. Marked clearly on my bill is the monthly / annual rates and I am not afraid to apply them. A small consolation, but it does compensate you for the repeated billings etc.

[jt5019]

Well no need to call him.... his dec payment just arrived in the mail.(hopefully jan will be quicker)I think what im gonna do is send a letter explaining late fees that will be added if payment is received past the due date. Maybe that will get him to pay a little quicker.I should have stated this in the contract but it was a last minute referral that turned into a bunch of accounts that i hadnt expected.

[snonut12]

To be honest, I really would not bother sending him a letter stating that late fee will be added if another bill is late. He signed a contract for this season. Just wait until next season and add it in the next contract. That way you don't need to mention or make any big deal out of it with him "personally". It sound like he has given you alot of business and I would not risk losing the accounts just because he could feel like you don't trust him. Again, just wait until next season and add the late fee clause in the contract.

[cat320]

I just had the same thing I sent out a bill Dec. 26th and have not gotten paid so the other day I called.I could not reach her no matter what time I called .called the next day and jus left message no response.So today I finally got ahold of here she stated that it was mailed out and i should get it today and I did, but she also stated that when she got my bill she was done making out bill somthing to do with the money she has comming in from her rentals.Well what can you say.

[31mv31]

Originally posted by jt5019
Well no need to call him.... his dec payment just arrived in the mail.(hopefully jan will be quicker)I think what im gonna do is send a letter explaining late fees that will be added if payment is received past the due date. Maybe that will get him to pay a little quicker.I should have stated this in the contract but it was a last minute referral that turned into a bunch of accounts that i hadnt expected.

Any account, business or residential, on my contract are subject to a 2% deliquency charge after the tenth day of the due date.