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Late paying customer


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  #1  
Old 11-27-2010, 10:07 PM
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Default Late paying customer

I got a commercial customer who till just recently has paid within 5 days of receiving their monthly statement. customer has been with me now 5 years. They now owe for September and Octobers bill, I have sent them a courtesy reminder that their bill is past due. Hate to get to aggressive at collecting for fear I may lose their business but yet I cant afford to work for free either. I have not heard from them as of yet nor have I received payment. Anyone with situation like this and advise
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  #2  
Old 11-27-2010, 11:12 PM
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Quote:
Originally Posted by Creagers Lawns View Post
I got a commercial customer who till just recently has paid within 5 days of receiving their monthly statement. customer has been with me now 5 years. They now owe for September and Octobers bill, I have sent them a courtesy reminder that their bill is past due. Hate to get to aggressive at collecting for fear I may lose their business but yet I cant afford to work for free either. I have not heard from them as of yet nor have I received payment. Anyone with situation like this and advise

You still doing work for them? If so, what? If not, why don't you just stop by there? I had a customer who always paid. Then I mowed for 2 weeks while she was out of town and all of a sudden she wouldn't return my messages or send payment from invoice I sent. So after 3 weeks I was in her neighborhood and just stopped by. Told her that I was working a couple streets over and wanted to swing by to see how her yard was holding up. She gave me the "I've been meaning to call you but I've just been so busy" line. She paid and since then things have been good. Don't know if that's a possibility?? Sucks not getting paid, sorry to hear it.
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Old 11-28-2010, 03:49 AM
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A 5 year customer deserves a personal visit from you.

They might be having cash flow problems. Or maybe they recently hired a new A/P person that mistakenly filed your bill without paying it.

A personal visit from you will help answer your questions. While you're there, see if you can chat with the company president/site manager. See if you can sell them additional services for the upcoming year.

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Old 11-28-2010, 04:45 AM
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I agree with the others, we foster relationships (or should) from the start, I make a point of it, doesn't always work but I would guess 99% of the time it does, pay the client a visit and see what it up, I would also suggest should this happen in the future, even with a new client, we should follow up within five days of billing in person.
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Old 11-28-2010, 10:52 AM
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Keep us posted on what you decide to do and what happens.
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Old 11-28-2010, 01:05 PM
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Keep us posted on what you decide to do and what happens.
I'm going to go there tomorrow and pay them a visit in person it's a husband /wife business photography studio that does alot of outdoor photo shoots and I do alot for them to keep their photo sets looking good. And they can call me on a moments notice and I will be there to take care of them. I havent stopped doing work for them and actuallly getting ready to bill them for November, Ive been their working several times and havent seen anyone around, cars have been there, but I don't bother them if they got their do not disturb Photo shoot in Progress sign out. Hopefully it willbe taken care of tommorrow when I visit them.
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Old 11-29-2010, 09:32 AM
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I am sure there will be an interesting story behind why they stopped paying.
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Old 11-29-2010, 06:38 PM
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I am sure there will be an interesting story behind why they stopped paying.
well went to see them today they said my invoices I sent got lost and they didn't know what they owed, so went to the vehicle and got them another invoice for Sept. and October and while I was at it got them one for November they cut me a check for all 3 months. I gave them another business card and told them if this happens again please call me. I don't by the lost story 2 months in a row but hey got paid my secretary(wife) is happy she can close out the books for those 2 months. And they said they would see me when the snow flys
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Old 12-01-2010, 09:12 AM
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I am glad to hear that it all worked out in the end. How do you feel this will effect your future interaction with them, if at all?
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Old 12-01-2010, 12:53 PM
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That is a tough situation, since they have been customers for so long. So now they owe you for 3 months after November's invoice. Like the others said, you will have to stop by for a visit. During the visit be understanding and firm at the same time. If they do end up paying, explain to them that this can't happen again or service will be stop. I have great relationships with all of my customers, but they are very clear about my payment terms. The few late payers I did have were brought into line or dropped as customers. You went above and beyond by servicing them in November, without payment for Sept. and Oct. I would not have did any work in November. I can be flexible on occaision if the customer contacts me and explains to me the reason for late payments. In your case, they have not reached out to you, even after they still continue to recieve service. I would consider making this customer prepay for any work in the future.
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