[Grant]

I'd like to get some input from you guys on how you might handle the following situation:

My biggest maintenance customer ($6k + per month) is late in paying February's bill. This is not the first time. This customer is a homeowners association that is managed by a property management company. When I contacted the managing agent regarding this late payment I was told that "the check was in the mail". I've been told that before too. It's now 10 days past due. We've had this account for over 6 years and they do require some hand holding from time to time as board members turn over and the new members have to brought up to speed regarding what we do and why we do it. They also throw some extra work our way from time to time. Of course, we are paid extra for that. I don't want to upset anyone over this, especially the managing agent as the association depends on her input considerably when it comes tome for contract renewal. I just want to be paid on time. Any suggestions?

[Dale Wiley]

What percentage of your total business is this slow pay account ??

[pineapple]

See if you can get the Homeowner's Association President's home phone number. They will probably be more responsive and call the management company to expedite this. They may have a website with officer contact info.

I am part of our HA and it seems that most mgt companies are fairly lame. They have to be continually nudged to do routine tasks. We are paying them $30k+ a year to manage.

[georgiehopper]

I would tell them that "i need to come pick up payment since it has not arrived."

see what they say.

[Grant]

Here's what I did today:

I e-mailed the managing agaent again informing her that I understood that associations can have financial hurdles and that as I have in the past I was willing to work with them if that is the case. I went on to say that since I hadn't heard from her at all that I was still to paid under the conditions of our agreement just as she and the board expect us to perform our duties in a timely fashion. I then asked if there was anything that she needed from me to resolve this issue. I then thaked her for her help. Finally, I forwarded the message to the board and the landscape committee chaiman.

Did I go too far?

This contract represents about 20% of our sales volume.

[P-Train]

I think you handled it very well.

Keep us updated at to what they say.

[markuscb]

In the past, I've sent notices of either interest accurring if not payed within certain time limit, and also stopped service until I was paid. Works well and the check usually comes on time from there on out.

[cutntrim]

I'm not sure what the longest time they've ever let receivables slide on you, but 10 days is nothing in my experience. I have contracts with bigtime utility companies, recycling companies, and school boards and they're a lot worse than that. I have no hesitation in calling/faxing/e-mailing/and personally visiting to collect overdue accounts, but that doesn't seem to affect their speed in paying. I just factor it into my estimates for them and live with it. You're handling it fine.

[Grant]

Just got paid last week with apologies from the property manager. It just chaps my butt when these people think that it's OK to pay me late (this is not the first time) and then expect us to exceed expectations when it comes to fulfilling our contract. I guess I'll just have to build this "frustration cost" into my next bid for these guys and hope that the added cost doesn't blow me out of the water. thanks for your input.

Grant

[Will Sharp]

I do the same kind of work. I think the mind set of we have many family's depending on that money to make it. I just wondered if the invoice or check is lost in the mail?? Not a big deal just need to stay current. I really believe the squeaky wheel thing, but nice matter of factly. I since that you let it go on too long because you had too much at stake and then were a little to caught up in the moment. I just call because i know they would feel terrible if i let them go too far, Really is a helpful friendly mind set to call in. They know they owe you the money and we all want a win win. The more you call the easer it gets, might even sell more work!!!

[familyguy]

Can you charge interest? And how is the account payable? Net 30?

I have folks who pay Net 15 and those who can only manage with Net 30. (for maintenance accounts)