Posted by jonpa on 5/10/10 7:28pm
Msg #335766

My new policy

Due to the number of invoices over 60 days old and not paid as promised, ALL invoices must be paid within 30 days of signing. I know I will lose some sihning but if everyone does this, maybe we all should get paid faster with a lot less headaches.

Reply by MikeC/NY on 5/10/10 7:49pm
Msg #335770

How do you enforce that? n/m

Reply by mwm143 on 5/10/10 8:10pm
Msg #335772

Good luck with that.

Reply by Linda_H/FL on 5/10/10 8:19pm
Msg #335775

All my invoices are net 30 days

And have been since I started...some companies pay quicker, some take longer...

You said "ALL invoices must be paid within 30 days of signing"....or what? Interest? Late Fee? Wouldn't it be more effective if you stated an "or <something>"?

Reply by PAW on 5/10/10 8:24pm
Msg #335778

LOL! Again!!

I've told you before, we can't keep meeting like this. <sg>

Reply by Linda_H/FL on 5/10/10 8:42pm
Msg #335779

LOL...:) n/m

Reply by BrendaTx on 5/10/10 9:05pm
Msg #335780

Good to see you, Paul...You've been absent too much! n/m

Reply by PAW on 5/11/10 7:22am
Msg #335796

Fortunately, I've been busy lately. n/m

Reply by PAW on 5/10/10 8:22pm
Msg #335776

All my signing invoices are "net 30" as are many other signing agent's. Does that mean the all pay within 30 days? No, some pay longer than that, even up to 60 days after the signing, no matter what your policy is and regardless if it is printed in black and white. Unless you have some magical powers, it is difficult to enforce the 30 day payment requirement. Pick your clients carefully, paying attention to their payment histories. You may be able to avoid some headaches and Tylenol.

I always send an invoice to the hiring company. The invoice clearly states the terms (net 30) and the "past due" date. A friendly reminder (email and/or fax) is sent on the "past due" date with notice about late fees, which is also clearly stated on my invoice. After 45 days, a "final" past due notice is sent. After 60 days, if payment has not be received, the collection process is started. Hint: Don't threaten that you will start collection or small claims action unless you intend to do exactly that. Many states have prohibitions against false legal claims that could result in a much bigger and longer lasting headache that even Tylenol won't handle.

Reply by Claudine Osborne on 5/10/10 9:38pm
Msg #335783

Excellent advise from Paul again..As usual..Thanks!

Reply by Susan Fischer on 5/10/10 11:31pm
Msg #335788

* * * * * Golden Pearls, Paul.

Your Golden Pearls of Wisdom should be the very first item in the Famous Message.

You are so right. There's no sense going into business if you can't make the Cash Flow like a Bluebonnet spring.

I'd add that QuickBooksPro makes the whole process so slick, and a dream at TaxTime. (Nobody paid me to say that.)

Reply by PAW on 5/11/10 7:25am
Msg #335798

I agree ...

QB Pro has been the biggest asset (next to me, of course ) to this business, and my other businesses before this. (Unsolicited, uncompensated testimonial.)

Reply by Linda Juenger on 5/10/10 10:01pm
Msg #335784

Let us know how this works for you. n/m

Reply by jnew on 5/11/10 10:20am
Msg #335821

Re: Let us know how this works for you.

I have a problem making strict rules like this. I have good customers who pay within 60 days but give me a lot of business and they can always be relied upon to pay. If it really hurt my cash flow I would push it more, but I have had pretty good luck collecting. .

Reply by LKT/CA on 5/11/10 12:52am
Msg #335789

I only work with companies that pay within 30 days. Do I have less loan signings than some? Perhaps.....but I don't have to send reminders, nudges, emails, inquiries, sky write, or the like. My check is in my mailbox at or before the 30 days mark. Lately, the checks come at 21 days or less. Net 45 is no longer acceptable to me and net 60 is out of the question. My fees are met or we've negotiated a happy medium.