man this is a crap of a headache...
you pay these people who tell you to go pay those people, and after a seemingly long line you have to come back with all sorts of things that cost startup money..
and then after you pay all these things on time, the monthly bills come do, along with everything, but the kicker gets me when, more exactly why, when i dont pay on time no matter the excuse i pay penalties yet put the shoe on the other foot, and i hear thing from it has to go through accounting, blah blah... :angry: :blink: :ph34r: :( :blink:
and thats all i have to say about that....
um okay I guess I find out what this is all about tomorrow night.
If they dont pay you on time then you can charge them interest fees for over due services. Just add it to their balance. They are liable to pay on time if you have a specific written agreement of when services should be paid for.
QuoteIf they dont pay you on time then you can charge them interest fees for over due services. Just add it to their balance. They are liable to pay on time if you have a specific written agreement of when services should be paid for.
Right. It would pay to hire a lawyer to write up a good contract template that includes terms concerning timely payment of services. Or do it the "old fashioned way" and google it, or hack it up yourself.
If you really want I can see if I can send you an excerpt of said contract terms but I'd probably not get to it for 3 weeks.
Like Crow said, play it both ways and charge people for being late.
Btw, what is the nature of your business? I'm always hearing tidbits on the forums about miscellaneous dealings, but I never heard the full scoop.
A word about businesses, they never (hmmm... rarely how about that.) pay within 30 days. That's just how the world works. I work in the accounting dept for a big fish. We pay the little fish last sometimes. However, another big fish might get involved and things blow up with no one wanting to take responibility. They all get paid eventually but "when" is the question I ALWAYS get asked.
If the system worked like it is truely designed to, everyone would get paid on time. The only companies that truely make money off lateness are credit card companies and even they will make deals to prevent losing payment to the balance.
Fudd, you're in a small business right? By all mean your cash is the most precious thing. Charging interest may be a way to help compensate your time but in the end the interest fee will most likely never be paid. If you have to sue to get your money then that is a hell of a stink hole to be digging. (unless it's a lot, and then don't forget about your sK brothers here in Louisville ;) ) Court is not the best way to handle things espically when you're small but you already know that.
I get at least one notice a month where someone is trying to sue us for money and you know 95% of the time they still never get paid.
But fees and discounts work hand in hand, even a 1-10-N-30 could yield some faster turnover.
I too would like to know of your line of business. I thought you were a chef? :unsure: