How do you deal with non paying business customers

[houstonpcrepair]

I have an open invoice from a Apartment complex of $350. Its been 6 months. How do you guys deal with non paying business customers. This is the second time this has happened, and makes me want to stop invoicing small businesses. Do you guys invoice every small businesses or just the ones you have a history with. Do you make 1st time business customers pay after you complete the work? I am only 1 year in on the business side of computer repair.

 

[ajm]

Firstly, follow up with a phone call or email asking that the invoice is overdue. Speak with the person dealing with payments or the accounts dept. It is possible they may not have received the invoice or forgotten to pay. If they ask you to re-send the invoice(s), send one by email as well as post and follow up with a call confirming that they have received the invoice and that payment should be settled in the next x days

Find out if there is any particular reason why the invoice has not been paid and take from there.

 

[MobileTechie]

Yeah first thing is to speak with them on the phone or if they are avoiding you drop in to see them. People can avoid paying bills for ages but often will do so when prompted personally. If they are obviously refusing to pay or avoiding all contact send a couple of letters demanding payment by a certain date by registered mail, document all communications and take them to court.

 

[Xander]

You need a better policy in place to get your bills paid in time. Net 30, perhaps?

 

[Tony_Scarpelli]

I used to do net10 but still got stung a few times so I moved to COD only, especially for new clients. I just tell them that they have to write the check on site or pay by visa. I have had a secretary for the company pay me on her visa and then make a claim to her company.

Still once in a while I get stung but usually for very small amounts when I forget to make sure they know that they have to pay me when I come out.

No need working for your money twice. Once to earn it and once to collect it. You might as well stay home and watch the game then give away free work.

I'd send a postcard for collection, always polite about once every month for at least a year. Maybe they will pay you.

 

[Mr.Mike]

First, all my invoices say "due upon receipt". I do not like net-30. I accept personal checks with reservations, that is, if I know I can trust them not to bounce. If they do, I place a 15% late charge after two weeks that goes up to 20% after one month. That is intended to cover any bank charges from the bounced check and my time hassling with the issue. I also include a statement in contract agreements using net-30 payments that includes those same percentages.

In the three to four years I've been in business, I have only gotten two bounced checks. One person skipped town (the wife of an ex-police officer!) and the other eventually paid from a separate account. The person who skipped town left two laptops that were repaired. I still have them in case they get back to me (it's been almost two years).

 

[houstonpcrepair]

First, all my invoices say "due upon receipt". I do not like net-30. I accept personal checks with reservations, that is, if I know I can trust them not to bounce. If they do, I place a 15% late charge after two weeks that goes up to 20% after one month. That is intended to cover any bank charges from the bounced check and my time hassling with the issue. I also include a statement in contract agreements using net-30 payments that includes those same percentages.

In the three to four years I've been in business, I have only gotten two bounced checks. One person skipped town (the wife of an ex-police officer!) and the other eventually paid from a separate account. The person who skipped town left two laptops that were repaired. I still have them in case they get back to me (it's been almost two years).

Thanks guys. As far as the 2 laptops, I would have sold them a long time ago lol

 

[Mr.Mike]

Thanks guys. As far as the 2 laptops, I would have sold them a long time ago lol

I use them to test AV software and practice repairs!

 

[Canadian Tech]

I'm dealing with the same issue right now. I have a business client who's corporate office called me to do some work and I billed them. After 30 days I charged them a late fee, it's now been 6 weeks and still no payment. My next step may have to be legal action. I have net 30days but push for payment upon completion.

 

[gikstar]

Whatever you do, make sure you don't leave the door open for them to complain about their computer - how it's this or how it's now doing that. So, do not ask about the work you have done. They were pleased when you did the work for them. Some clients will try to shift the blame on you as to why they haven't paid their bill.

We try to make a habit of making friends with the one who determines which bills get paid this month

If the client is close enough to you, drop by to see if they need any thing else taken care of and provide them with a copy of the bill and ask when you might be able to pickup a check. Better yet the phrase "Would 2PM today be enough time for you to cut me a check or should I come back at 5 PM?" will get a response!

We had trouble with one client... we ended up going in and repo-in the equipment (with their prior approval of course).

 

[Benchtech]

You need a better policy in place to get your bills paid in time. Net 30, perhaps?

nicely done on the backlinks, is that allowed?

 

[Xander]

It was in reference to the first post. No SEO intended.. well, on my part anyway.

 

[nightkingdoms]

I don't do NET-anything terms for brand new people. As far as I'm concerned, credit is earned. After a few higher dollar invoices are paid on-time, then I consider it. Businesses are usually the only ones I give it to. However, I don't give them NET30 unless I get a lot of business from them. It's either NET10 or NET15, tops. Sometimes they like to take forever to pay it because it's due in a month, so they think they have time to wait. After all, it's not "late" until over a month. lol So ya, I keep a tight leash. No pay, no service. After 15 days I tell them it's going to collections.

 

[Des]

I haven't had any single policy work perfectly because people like to leave in the middle of the project to go do something so when I'm done, they're not there. Or their accountant isn't there or they're an offsite 3rd party one or blah blah blah. So I try to get paid the same day while I'm onsite unless they say they can't do that, then I have to do a net 30 invoice.

If there's hardware involved, at the time I give the quote I ask for a down payment to cover the parts though before I place the order. If someone doesn't pay me for labor, at least I didn't lose money on the hardware then.

If they don't pay their invoice on time, I send another copy with "overdue" on it and that usually does it. Most are just embarrassed that they forgot. If they still don't, I hate being the one to make that awkward call so I usually just forget it and if they call for future work, I tell them they have an outstanding invoice that needs to get paid first. That combination has gotten almost all of them paid thus far.

Another company by me doesn't do any offsite service at all so they aren't picking their system up from the shop if they didn't bring payment. I guess that works

 

[nesrinamb]

My process

1. Send invoice

2. Send reminder their invoice is late ad tell them if they don't get back to me I'm adding late charges

3. add late charges

4. Remind them that a technicians license is placed on all repairs in california and I can walk in and just take the hardware I worked on (never done it before but I know some who have and yes they where taken to court but actually won )

 

[houstonpcrepair]

My process

1. Send invoice

2. Send reminder their invoice is late ad tell them if they don't get back to me I'm adding late charges

3. add late charges

4. Remind them that a technicians license is placed on all repairs in california and I can walk in and just take the hardware I worked on (never done it before but I know some who have and yes they where taken to court but actually won )

I don't think this is possible in Texas.

 

[Mr.Mike]

My process

1. Send invoice

2. Send reminder their invoice is late ad tell them if they don't get back to me I'm adding late charges

3. add late charges

4. Remind them that a technicians license is placed on all repairs in california and I can walk in and just take the hardware I worked on (never done it before but I know some who have and yes they where taken to court but actually won )

I'm with you all the way up to #4. By saying "a technicians license is placed on all repairs in california" you actually think you can "walk in and just take the hardware"????

Duuude. Please......

 

[Cornerstone Technologies]

I don't think this is possible in Texas.

Yeah....because he specified that it is possible in California. Like anything, your mileage may vary depending on your local and state laws.

I'm with you all the way up to #4. By saying "a technicians license is placed on all repairs in california" you actually think you can "walk in and just take the hardware"????

When I lived in California and worked for a local shop, this was actually done twice. The procedure wasn't easy, and involved quite a bit of legal ass covering to actually get to the point where it was legal to enter the premises and repo the machine. Interestingly enough, we eventually teamed up with a repo company that ended up handling it for us. Big guys with tats that look fresh from San Quentin have the neat effect of being able to collect payment fairly well. But, there is no legal precedent of being able to just seize unpaid hardware at will.

 

[Mr.Mike]

When I lived in California and worked for a local shop, this was actually done twice. The procedure wasn't easy, and involved quite a bit of legal ass covering to actually get to the point where it was legal to enter the premises and repo the machine. Interestingly enough, we eventually teamed up with a repo company that ended up handling it for us. Big guys with tats that look fresh from San Quentin have the neat effect of being able to collect payment fairly well. But, there is no legal precedent of being able to just seize unpaid hardware at will.

Granted, I am no legal scholar, and with all due respect to my fellow TN Tech, this is so wrong on so many levels it makes my head hurt.

 

[Cornerstone Technologies]

Granted, I am no legal scholar, and with all due respect to my fellow TN Tech, this is so wrong on so many levels it makes my head hurt.

In practice, if it is executed perfectly by the letter of the law, I do not see a problem, nor any reason why it would be wrong. If you fail to pay the note on your car or house, you don't generally get out of your obligation. Because a computer is not as expected shouldnt be a reason why a business should have the screws taken to them because of deadbeat.