policy for dealing with slow-paying customers and suppliers needed

Rising_Sash · 09-20-2009, 11:28 AM

I need a policy for dealing with slow-paying customers and suppliers.

Apart from the policy I need the following information...
• When do I make a phone call?
• When do I send a letter?
• Where do I get your attorney to threaten?

Mega B · 09-20-2009, 11:40 AM

I always think its nice for a introduction to the forum 1st as we have no idea what business you are in or anything to go on.Rather than straight in with a question !!!

Welcome to the forum anyway.

peteVA · 09-20-2009, 04:47 PM

This definitely depends on your type of business. Fewer businesses are extending open account type terms these days. Even established companies are cutting back on open accounts and encouraging credit card payments. I have one supplier who offers 5% discount for paying by a card on file that the process at time of shipment. I have several others who offer 2% discounts for "card on file" payments, rather than net terms.

GlobalWealth · 09-21-2009, 03:18 AM

Quote:

Originally Posted by Rising_Sash

I need a policy for dealing with slow-paying customers and suppliers.

Apart from the policy I need the following information...
• When do I make a phone call?
• When do I send a letter?
• Where do I get your attorney to threaten?

If you sell on terms (ie 30 days) I would call them the day the bill is due and send a letter either by email, fax or mail. You need a policy to charge a late fee for past due invoice like 2% per month. If they don't pay by the due date, send another invoice on colored paper (it stands out in a pile of mail) about a week later. If you sell on ongoing service, I would discontinue service at 30 days past the due date and report the late invoice to Dun and Bradstreet RMS.

peteVA · 09-21-2009, 02:35 PM

If you called me the day the bill was due, it would be the end of our business relationship. I would never consider that. No mention is made of countries, but in the US if a payment is postmarked by the due date, it is considered timely payment.

Calling on the due date would only give me the impression you were in financial dire straits and desperate for money, not the type of supplier I wish to deal with.