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re-invoice fee for accounts with no activity?

Discussion in 'Business Fundamentals' started by WRIGHTWAY, Jul 8, 2015.


    WRIGHTWAY Senior Member
    Messages: 104

    Have any of you charged a re-invoice fee for accounts with no activity?

    I currently bill customers on the 1st of every month for the previous month’s charges payment due the 10th any bill not paid by the next billing cycle receives a late fee of 1.5% monthly witch is 18% annually.
    This works fine for most customers but I have a few long time residential customers who just keep getting later and later with their payments. To the point of not paying the last couple of months till just before the next season!
    Some of these accounts are currently up to $300
    I fell like I have been more than patient and forgiving in the past but if I don’t put a stop to this now it’s just going to get worse.
    I have no reason to send invoices through the summer months other than the unpaid accounts.
    What I would like to do is still charge late % fees as I have but add a flat fee of lets say $8-10 for rebilling accounts that have had no activity

    So question is can I do that legally in Michigan?
    Has anyone done anything like this?
    And do you think it will work?

    Thanks in advance for taking the time on this
    Joe Wright
  2. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,394

    Just drop them and move on....

    WRIGHTWAY Senior Member
    Messages: 104

    I guess I should add I have always been paid in full including late fees just slow.

    One of them is also in subdivision that I plow the road and 8 driveways if I drop that one it could open the door for competition to move in

    Not really complaining about making 18% on my money for a few months but I would rather have it now.
  4. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,425

    Yes, you can charge a rebilling fee.

    But your best bet is to get rid of them. They're abusing you.
  5. Wayne Volz

    Wayne Volz Senior Member
    Messages: 694

    Getting paid

    Our contract does have a re-billing fee option. Check with legal advice before implementing in your business but at least it can be an option.

    Good luck.
  6. cet

    cet PlowSite Fanatic
    Messages: 7,192

    If you are collecting in full and not in need of the money I would be happy with the interest rate.