Quote:
Originally Posted by The Swede
We did a car for him 9/08 and he finally paid me 2/08. Then we did a car 10/08 and he paid 3/09.
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(I'm assuming that was paid 2/09) There seems to be a pattern developing here, it looks like you've got to wait another 15 weeks or so for payment. I don't know squat about the auto detailing business but 5 months past due sure seems like an unreasonable time frame for collection. At 30 days past due, the bookkeeper sends a nice reminder letter, at 60 days she makes a phonecall and the account is put on hold until payment is received and at 90 days they are sent to collections and their account is closed permanently. All it takes is some regular communcation on their part to work out an acceptable payment plan that prevents any or all of that from happening. There are some former customers that went all the way to collections that are not only not Cash.O.D., we won't sell to them period.
We're very accomodating as long as the line of communication is open and they're making an effort to pay down that balance, even if it's a partial payment. Within reason of course.
It was your time, your labor, your materials. Now it's your cash flow he's affecting.