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Advice on non payment

Discussion in 'Business Fundamentals' started by PrecisionS&I, Jan 13, 2014.

  1. PrecisionS&I

    PrecisionS&I Member
    from Ohio
    Messages: 75

    Just looking to see what some of you would do in this situation?

    I have a shopping center account that is broken into two separate invoices. One invoice is for the shopping center and one out parcel and one invoice is for two other out parcels. They are seasonal all inclusive contracts. (salt included.) I have a rented skid steer on the property which is $1000.00 a month. As of last week I still had not received any payments for the months of November or December. I called the prop. manager and she said she would look into it and get back with me. 2 days later nothing so I call and she said she was unable to check on it due to the extreme cold and pipes breaking and other weather related issues at her properties. She said she would look into it and call back. Nothing by last Friday so I emailed her and stated all the above and that without payment it would be extremely hard for us to continue service on her property simply because we don't have the cash flow to continue.

    So today Monday I call and talk to accounts payable and they said they could not help me I would have to talk to prop. manager. So I get her on the phone and tell her about not being able to service the account and she says "Well Let Me Know So I Can Find Someone Else" I explain to her that I want to service it I just want paid. She said she will talk to her boss and see about getting me paid this week. I then reminder her the January payment is due Wednesday and that they will be 3 months behind and she says she never got the January Invoice that I emailed her on 12/19.

    So I am just wondering if I should ride this out and let them get more behind or just pull the equipment and stop service and get out with them owing me what they do? Just looking for a little input.
  2. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,594

    I would say chances are you will get paid for Nov. and Dec. and then they will be behind again with Jan. Her response made me laugh..."Well Let Me Know So I Can Find Someone Else" :dizzy: No, I just want to get paid stupid!

    Stick it out, you'll get paid, just keep hounding them. It's not high on their priority list as usual.
  3. FourDiamond

    FourDiamond Senior Member
    Messages: 130

    I never threaten to terminate service unless I actually plan on following through with it. In some cases, that's what they want you to do. By terminating service in their mind they don't have to pay you. Just keep after them and sooner or later you'll get paid. I know that doesn't help to pay the bills, but it might make it a little easier to sleep tonight.
  4. Plowtoy

    Plowtoy Senior Member
    Messages: 929

    What does your contract state for payment terms? And what are the concenquences for non-payment? My contract reads as follows:

    10. Payment: Payment is due 15 days after invoice date, unless prior arrangements are made.
    1. Checks must be payable to After Hours Snowplowing.
    2. Any invoice over 10 days past due will be subject to a late fee of 15%. After Hours Snowplowing reserves the right to suspend service when payments become more than 10 days past due.
    3. A service charge of $30.00 will be charged for any returned check.
    4. Property representative will be responsible for all costs of collection, including without limitation, Court costs and reasonable attorneys fee’s in the event that it becomes necessary for After Hours Snowplowing to resort to legal measures to collect any amount owed under this agreement.

    I suggest following what your contract states. If it is not to your liking, you should rewrite it to fit your needs. Good luck
  5. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    I try to stop at $3000. Thats high as small claims court go's..
    My bigger complexs do get 60 days late some times high as 50k..
    Checks do come.. slow as hell
  6. ddobson

    ddobson Junior Member
    from pa
    Messages: 29

    I think you'll get paid just continue to be persistent in your collection efforts. It may take some time though that you are running short of. Good luck.
  7. bosman

    bosman Senior Member
    Messages: 165

    A surprise face to face chat usually works for me. Go to the office, invoices in hand, contract in other, and talk real loud so others can hear you.
  8. M&M

    M&M Senior Member
    Messages: 312

    Plowtoy, be careful with the 15% late fee. That wording may get you in trouble. In NH we are only allowed to add a late fee of 2% per month. Now that adds up to 24% per year but we have to space it out.

    I just wanted to give you the heads up so you don't get into a sticky situation that you didn't expect. :D
  9. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 9,083

    Next time it snows don't show up, when the call asking where you're at ask them where's the check to make the current.
  10. Plowtoy

    Plowtoy Senior Member
    Messages: 929

    I often forget I am playing with the "big dog's :waving:" here. I have been one of you in the past, but today, I am just a one man show. There was a season or so we grossed about $100k, mind you it was still only a part time business for me, but that was many years ago. My contracts were much more simple back then and did not have the wording I have now, which, if I think about it, is crazy. Back then I too had many slow pays, so I understand your point. Today, its unlikely I will have a monthly bill to any one of my accounts over $2k...

    Thanks for the heads up M&M. I have had an attorney approve my contract a year or two ago, but maybe its time to have it looked at again, just in case any of the laws have changed here.
  11. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,779

    Just be consistent with your invoice intervals, add on a nominal late fee that gets noticed every month and continue to compound it until you get paid. The thing about being consistent comes in handy if it goes sour and you end up in court. If you do your end then the settlement will probably award you the late fee as well as collection costs.
  12. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,218

    I am going to disagree with sticking it out and you will get paid. I would just be quiet and not say a word. Next time it snows, pull your equipment. Let them get someone else ... at the last minute. When you see the next person, warn them about "no pay".

    Where I live, I talk to other snow plow guys/girls. We always exchange information on who does not pay. We all stay away.
  13. Grassman09

    Grassman09 2000 Club Member
    Messages: 2,808

    I think in this economy it wouldn't matter. There is always someone lined up willing to do it cheaper and they probably know that. You can tell by there response to him when he said he cannot service the site.. Pretty much oh ok no problem we will find some other sucker who we wont pay.
  14. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,218

    Agree with what you said but let the next guy/gal be out the money and let the non payer scramble to get someone during a snow fall.
  15. OldSchoolPSD

    OldSchoolPSD Senior Member
    Messages: 242

    Or you could just call and hassle them about it. I'd try that before I did some vindictive bs that would cost me a customer.
  16. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 9,083

    Have your wife nag them, it'll give you a reprieve.........:laughing: