# how do you get customers to pay?



## Wensdy (Jul 18, 2006)

i have some customers over a month or mor old invoices and they keep making excuses or say 2 weeks, and I never see payment. I hate having to go to my attorney and give him part of my profit, etc....
any good ideas/tactics from anyone on how to get customers to pay my inovices? 
thanks.


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## Sir Mixalot (Jan 6, 2008)

In 13 years of business I've only had this happen one time. It was a contractor. I showed him the proposal that he had signed and threatened to call the County Licensing Enforcement office. He caughed the check up on the spot. I think because on my Proposals I have a place on them that say's "with payment to be made as follows" Usually I write "when completed". Then @ the bottom of my Proposal I have a section that say's "The above prices, specifications and conditions are satifactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above." 
Then I have them sign and date on the signature line. Usually when people sign something they feel a obligation to pay or it could possibly cost the more $$$$$.

Do you have their signature?


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## Ed the Roofer (Dec 12, 2006)

Wensdy said:


> i have some customers over a month or mor old invoices and they keep making excuses or say 2 weeks, and I never see payment. I hate having to go to my attorney and give him part of my profit, etc....
> any good ideas/tactics from anyone on how to get customers to pay my inovices?
> thanks.


You don't have to give your attorney a fee, (well initially you do), if you have a well founded case that the HO can not find a legitimate reason to counter sue you for and if you have a properly formatted "Attorneys Fee" clause as part of your general conditions. 

It must be fair to both parties or must be prompted by a specific action/inaction by one of the parties to the contract.

Ed


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## dryrocker27 (Dec 2, 2007)

I agree with Six Mixalot We have all contractors and Homeowners sign a contract with the payment clause clearly stated. 
We operate on a 15 day payment schedule. After 15 days we start to charge "INTEREST" in the amount of 1.5% per 15 days. After 30 days, it jumps to 3%, after 60 days a lien will be filed. All of this is clearly stated in bold letters in the contract.
We have only had to charge interest 1 time and the man was mad as hell, but he chose to pay late.
You can have an attorney make a phone call on your behalf for a very reasonable fee. make sure that they mention the fact "that further legal action can be avoided if"
Here in Virginia- you only have 90 days from completion to file a mechanics lien.


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## silvertree (Jul 22, 2007)

Here in Minnesota you can't collect interest from a homeowner, I have it on my contract, but I had 2 lawyers tell me it's unenforcible.


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## Tim0282 (Dec 11, 2007)

In Iowa you can not charge interest unless you are a bank. You can charge a service charge of any amount you desire as long as it is stated on the original bill. First bill.
To get their attention, I have charged a "lack of interest" charge. That will get the dander up in a hurry!! Makes 'em awful mad! But they pay right away too.

Tim


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## silvertree (Jul 22, 2007)

To get their attention, I have charged a "lack of interest" charge. That will get the dander up in a hurry!! Makes 'em awful mad! But they pay right away too.

Tim[/quote]
That's a good one Tim :clap:


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## fathersonfab (Apr 27, 2007)

I read a great article in some contractor magazine about a payment clause in the contract that reads... "Final payment due upon usable condition" rather that saying upon completion. that way you get final payment before you due your final punch list and the home owner has no nit-picking reason to withhold payment. Get paid, THEN do the final punch list....

Anyway about your dilemma with the non-paying customer... Have you tried parking in their driveway when they come home from work? If they can't pay you when you show up, is there anything you can hold ransom?? :sneaky2:

Can't you file your mechanics lien? That's what its for... non-payment. They will be happy to pay once they are threatened with foreclosure!!


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## rbsremodeling (Nov 12, 2007)

I own a 9. I tuck it in my front waist band and when I ask for the check I raise my shirt and wipe my face and then see what they have to say about the check then. Works for me every time:thumbsup:


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## Ed the Roofer (Dec 12, 2006)

Here is my substantial completion payment clause.

Ed

*Article 9)* Payments – Payments shall be made as provided in the agreement. The making and acceptance of the final payment shall constitute waiver of all claims by the Owner. Payment is due upon substantial completion of the work. If certain items of specified contractual work are incomplete, the cost of these items up to 5% of the original base contract amount, or a mutually agreed upon sum, may be withheld from the substantial completion payment at the Owners option until such items are complete or until the final walk through inspection has been approved. The work will be deemed substantially complete when the Contractor has completed all work called for in the contract documents and the work is ready to be used and occupied by the Owner, even though minor items may remain to be installed, finished, or corrected, provided such minor items do not have and appreciable effect on the Owner to utilize the work for its intended purpose.


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## raven2006 (Dec 19, 2006)

I just casually mention at some point while doing the job that dealing with small claims court is a personal hobby of mine, I'll take even small matters there simply for the experience. Oh and that I have yet to lose. Seems to work for me...


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## silvertree (Jul 22, 2007)

I tell them I will eat their Liver, fry it up with some nice Fava beans with a little squirt of Lemon to bring out the flavor.:w00t:


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## ghost (Jan 17, 2008)

Do what you have to to get your money.But do it legaly,There's no sence working if you are going to pay the customer for the work you did.You are not a bank. I had two customers give me excuses for two months when i took legal action they applied for bankruptsy. I am still digging out of that hole.We work cheap enough don't work for free.


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## POOLMANinCT (Oct 7, 2006)

olddebts.com


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## [email protected] (Jan 12, 2008)

Wensdy said:


> i have some customers over a month or mor old invoices and they keep making excuses or say 2 weeks, and I never see payment. I hate having to go to my attorney and give him part of my profit, etc....
> any good ideas/tactics from anyone on how to get customers to pay my inovices?
> thanks.


Put a lien on the job that allways works for me, or check with your lawyer
cant he do you a favor.


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## chameleon (Jan 27, 2008)

*Magic Word...."LIEN", works every time !*

I have been down this road.....it makes me sick to my stomach ! I have a regular practice that I have added to the business.
1. Job Account with the supplier
2. Pre-lien the project
3. Payment schedule on the contract

Before they become delinquent.....I place as many calls as I need to the builder to remind them payment will be due. If that fails, then usually I mention that a Lien will be placed on "A Date".....It usually works.

Check for Lien companies in your area, they can be a little pricey, but after all, it is your money.


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## skyhook (Mar 17, 2007)

Leins, threats, violence are all good remedies when someone doesn't pay. I prefer not to let it get to that point by getting money up front and progress payments. Add 10% on the front end and ask for 10% on completion. If you don't get the final payment, no sweat.


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## chameleon (Jan 27, 2008)

Even if you get money up front....there is an agreed cost. The proposal is "X Dollars"....thats how much you will pay, right. Everyone handles their business differently...but if you want a service, agree on a price....do the job, and get paid for what you have agreed on. It's really simple, but is always complicated by excuses.....
Sorry, I don't re-negotiate the deal after it has been made, I will allow for changes and credits where needed but for the original amount....Nope !


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## rbsremodeling (Nov 12, 2007)

1. smith and wesson
2. glock
3. walther ppk

These law firms work wonders for me:thumbsup:


I am joking of course


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## allaspect (Feb 8, 2008)

*Can A Contractor Legally Keep Hold Keys Until Paid?*

I have the only set of keys to an investment property. They don't want to pay. The deck was the last thing on my list to get paid and they told me to stop doing it. I requested payment immediately since they are trying to prolong the job by prolonging the last item on my list to get paid. Also how do I make this a headline post? Not a reply


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