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Post by irjasen on Mar 10, 2006 17:25:29 GMT -5
Hi,
I'm starting up my business, the money it is not raining money but it's good, what concerns me is that the places that i work for are not paying on time, what can I do about this, and how should i go about this. Thanks in advance
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Post by logan5127 on Mar 10, 2006 18:13:04 GMT -5
If you are doing good work and they like you then just tell them you are a small company and really need to be paid on time to cover your expenses.As you grow it will be a little bit easier to deal with. But it can be a nightmare for someone just starting out.
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Post by Grizzly on Mar 10, 2006 18:17:10 GMT -5
This is a practice that you need to develop right off the bat, it will serve you well even if you grow to a multimillion dollar corporation. Make sure that your terms of payment are spelled out clearly on your invoice. Get in the habit of following up on those terms. If you give someone 15 day net, on day 16, give them a polite call. Then proceed through the different collection steps. For a small business, cash flow is king, you need to stay on top of this. I find a friendly phone call is always better than a colleciton letter.
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Post by irjasen on Mar 10, 2006 19:45:23 GMT -5
Thank you for those insights.
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Post by Crowz on Mar 11, 2006 23:57:24 GMT -5
Dan is right. Nothing else worked for late pays (IE calls, letters, faxes, emails) so we started putting due dates and terms (all are net 20 days) on Invoices as well as a footnote stating that all accounts that were 30 days past due would be charged a 10% late fee. Yes, I checked with an attorney who just happens to be one of our clients and here in AZ it is legal to charge pretty much whatever you want with compounded interest as long as it is in writing. We started in January and are giving all accounts until 03/25/06 to come current and stay that way. It has already gotten the attention of some late pays! So, we will see......... I'll let you know come the 26th how well it is working!
Natalie
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