I've got a quick question for the self employed about overdue accounts. I'm a carpenter and do residential and commercial construction work. The odd time I get someone who doesn't pay a bill right away. I have been charging 2% per month on all overdue bills, but is there anyway I can charge 3% or another tactic to get customers to pay up quicker? A charge of 2% just doesn't seem to scare people into paying their bill or provide enough compensation to me. And when I'm putting up the material and labour I'd like to keep cheques coming in on a regular basis.
I know I could and have made calls to collectand I've taken money upfront, but for the bills that are only one or two months late there must be a way to either get people to pay right away or compensate my business enough.
This may be a stupid question and I know all businesses run into these problems, but I figured I 'd throw it out there and ask CP for ideas.
I understand that tradespeople can place liens on people's houses or property if they dont pay the bill. I believe it is called the Builders lien act, or also known as the mechanics lien act.
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Last edited by ricosuave; 01-01-2010 at 11:21 AM.
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another option that tends to be quite successful is to offer those people who sign off and pay in full within 30 days (or 21 days) a 2% discount off of their bill. After 30 days, the entire amount is owing and intrest starts accruing.
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The Following User Says Thank You to killer_carlson For This Useful Post:
another option that tends to be quite successful is to offer those people who sign off and pay in full within 30 days (or 21 days) a 2% discount off of their bill. After 30 days, the entire amount is owing and intrest starts accruing.
This is what I have been considering. Totem does this sort of thing with their bills.
Account overdue interest question.
