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Bill question

Discussion in 'Business Fundamentals' started by Brant'sLawnCare, Jan 28, 2009.

  1. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,756

    So I sent someone a bill at the end of last month. It was for $500. They sent out a check for $200. I didn't realize until today that they had not payed their full amount. What do you guys do in this situation. I was thinking I should call them and ask if they understood the bill. Then explain to them the contract they signed, saying a 2% charge would be added if the amount is not paid by date, and services would be stopped until the bill is payed in full.

    Or should I send them another bill with that balance, plus whatever extra they owe me from this past month?

    I just kinda figured, since they sent out a check, it must have been for the same amount as the bill that I had sent out. Makes sense, right?
  2. qualitycut

    qualitycut PlowSite Fanatic
    Messages: 24,231

    I would call them and just ask them about it. I have had this happen to me a few times and sometimes its just they sent the wrong amount and sometimes they just do not have all the money. If they didnt have enough to pay I would expect a phone call to me to explain it though. I always make copies of the checks that are not full payment.
  3. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Make sure they didn't sneek one by you and put paid in full on the memo line of the check. If this is not the case, then for the first time it happens, I usually just send out a bill with the balance on it, and a little note on the bottom stating this is the one freebie. If it happens more than once, then the 2% goes on it, and a little note on the bottom stating that if the balance in full is not paid by a certain date, service will stop and the bill will be turned over to collections. I have had good results with this so far.
  4. jgoetter1

    jgoetter1 Senior Member
    Messages: 278

    Is this a new customer? If so, call and explain that your terms are 'due upon receipt'. Most people are reasonable and will pay the bill.

    I've gotten a feel for deadbeats and freeloaders over the years, and as soon as I realize this may be the case I stop service and begin small claims court proceedings.
  5. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    First off it's never a mistake, never. They are playing a game.

    All outstanding dollars are consider for a percentage markup after their grace period.
    After a number of warnings, a registered letter is sent out, then a phone call, then a lien, then this summer I start foreclosing procedures.

    They didn't have to take the service, they could have always called and made arrangements, we worked and came and serviced - they pay. We are not a bank, a government bailout package or a charity - we are a service provider. We are approachable but not gullible.
  6. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    scottL, congrats on becoming a PS Addict.

    They paid something so they got the bill. Either call and see what is up or send out another invoice with the amount still due X your interest rate or late charges. If you don't get it, then you stop plowing.

    I sent out a bill for $300 and have not recieved payment. I plowed everyone except this client yesterday. I will send them another invoice with late payment charges today. You can't mess around. People will shaft you. Proving you plowed this winter in June to get your money is hard.
  7. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,756

    Yeah, new customer. I guess I will probably write them a note saying I will wave the 2% this time, but the invoice needs to be payed in full, unless a phone call is made. I will send out another invoice and circle the due date. Then if I don't receive the money by then, I will stop their service until I get paid the full amount.
  8. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,756

    I will check on this. If this is the case, then I will add the 2%....
  9. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    The due date has come and gone hasn't it? I doubt they paid you $200 early and are going to pay the other $300 by the due date.

    It wasn't a mistake on their part. Why are you not going to charge them the interest rate your contract says you will charge them if payment isn't made on time?

    I don't want to sound like a hard ass, but dang, these people owe you money for work you did under a contract. Get Paid!