Getting Paid!

Chesapeake

Chesapeake

New member
I've been fortunate over the past 8 years. I've only had one no-pay customer, and a few slow-pay. But with the steady downfall of the economy, getting paid seems to be getting harder. Customers are taking longer to pay and I am currently having a problem with a customer not paying their bill. This person is avoiding my phone calls and not returning my messages. If it was just a few hundred $, I wouldn't be to concerned, but its the final draw of a residential paint job on a 5000sqft home. Anyone else having problems getting paid?
 
Chesapeake said:
I've been fortunate over the past 8 years. I've only had one no-pay customer, and a few slow-pay. But with the steady downfall of the economy, getting paid seems to be getting harder. Customers are taking longer to pay and I am currently having a problem with a customer not paying their bill. This person is avoiding my phone calls and not returning my messages. If it was just a few hundred $, I wouldn't be to concerned, but its the final draw of a residential paint job on a 5000sqft home. Anyone else having problems getting paid?
Click to expand...

This may not seem like a lot to the big guys on here, but as of today Shelly tells here's where we are:

30 days past due - $1850
60 days past due - $5938
90 days + past due = $7025

Four of them are car dealerships.

Last year I had less customers of course, but I only had 3 or 4 customers go over 90 days in the entire year up until about August.

Same thing's happening in Shelly's business.
 
Chesapeake said:
I've been fortunate over the past 8 years. I've only had one no-pay customer, and a few slow-pay. But with the steady downfall of the economy, getting paid seems to be getting harder. Customers are taking longer to pay and I am currently having a problem with a customer not paying their bill. This person is avoiding my phone calls and not returning my messages. If it was just a few hundred $, I wouldn't be to concerned, but its the final draw of a residential paint job on a 5000sqft home. Anyone else having problems getting paid?
Click to expand...

I have spoken with several contractors It is getting more common. I havent had the problem yet.

Hope it works out for you on the final draw
 
In God We trust....All others pay cash or credit cards
 
tonyshelton said:
This may not seem like a lot to the big guys on here, but as of today Shelly tells here's where we are:

30 days past due - $1850
60 days past due - $5938
90 days + past due = $7025

Four of them are car dealerships.

Last year I had less customers of course, but I only had 3 or 4 customers go over 90 days in the entire year up until about August.

Same thing's happening in Shelly's business.
Click to expand...

I'd be parked in the lot blocking the entrance
 
I understand that alot of people are having problems paying bills right now, but what do you do as a contractor? Yes, you want and need to be paid, but at the same time you hate to risk losing a relationship with a customer, by sending it to collection. If my customer would just communicate or set up a payment plan with me, I would feel alot better about it.
 
The bill was over 45 days old. Balance due is close to $9000. I talked to the guy 2 weeks ago, and was told I would recieve a check that week. I gave him 2 weeks and still no check. I called his office several times and no answer. I left messages, and no return calls. I called his project manager, had his business card, and he said he would give him the message and have him call me asap. No call. I looked around on the internet and found the guys home # and address. I called his house last night. His wife answers and i tell her who I'm looking for and she's seemed nervous. Naturally he wasn't available to talk to me, but she would help me out. Then she goes on to tell me she mailed the check Friday. Well if thats the case I should have recieved it saturday. I was hoping to see it today. Still no check, and no return call. I'm pretty easy to get along with but this seems shady to me. Maybe I'm over reacting.
 
When you're getting strung out on the first job you should start to wonder what happened to his last painter?

I'm old school but I'd give it a few more days before I would be sure she was not telling the truth. Then I'd be banging on his door at home after 6pm. If he's in trouble the longer it goes the less like you will get paid.
 
tonyshelton said:
This may not seem like a lot to the big guys on here, but as of today Shelly tells here's where we are:

30 days past due - $1850
60 days past due - $5938
90 days + past due = $7025

Four of them are car dealerships.

Last year I had less customers of course, but I only had 3 or 4 customers go over 90 days in the entire year up until about August.

Same thing's happening in Shelly's business.
Click to expand...

No offence but a car dealer that far behind is probably on the way out. you need to start collections NOW. Like tomorrow at 9 send the certified demand letters USPS certified mail return recipt. Problem is if they close up you will be dead last for ceditors to get anything from the remaing assets.
 
I have only one out right now and it is my first, it's not a lot of money but still I would love to get paid. I sent them a message on the invoice saying if you need to make payments call me and I will arrange it, at least maybe if they can pay small payments and I will get something out of it without sending them to collections.
 
I'm still waiting on money,today its been 67 days and every week that goes by the get charged 10% more. we agreed to 15 days on contract. but I need the money for a vacation
 
I am in a similar situation. I agreed to do the job and the guy in charge told me that it is a 7 to 10 day payout. After doing the job, faxing the invoice I went up there and met the people in person and then found out from the other supervisor it is a 30 day payout.

I then stopped at the accounting office and then found out that it is a 70 day payout as they are in the middle of a merger (they are one of the largest Nation-Wide Waste companies out there) and that they would do their best.

At 75 days I called and asked about the check and they told me that it would be sent out on the 23 which would be 92 days from the day of the work being finished. They told me that it takes 70 days from the day their corporate office gets the invoice then they only cut checks on the 23 of the month so then you have to wait for the mail. Wow.

I know that things can be changed, there have been several company's that have changed the payout for special customers, you just need to know the right person.





_________________
Superior Power Washing<O:p</O:p
Chris Chappell<O:p</O:p
361-853-2513<O:p</O:p
Exterior House Cleaning in Corpus Christi Texas<O:p</O:p
Cleaning Concrete Driveways Sidewalks and Walkways in Corpus Christi Texas
 
Alexy said:
No offence but a car dealer that far behind is probably on the way out. you need to start collections NOW. Like tomorrow at 9 send the certified demand letters USPS certified mail return recipt. Problem is if they close up you will be dead last for ceditors to get anything from the remaing assets.
Click to expand...

I've had one of them for four years. The worst one never paid longer than 20 days after I sent the invoice.

They are not in that bad of shape. We know because my wife does their registrations. They are down 40% from last year. But the past two weeks are up from this time last year. I don't want to mention the brands, but they are not Chrysler, - which is going down, or Chevy - which is also hurting.

The are just holding on to what they've got. It's the hoarding up for bad times mentality.
 
You should always have a plan for collections before you need it. Many times the earliest creditors do get paid to avoid the rumor mill which can result in other vendors requiring COD. Once a company is sure it's going down there's not much you can do. If you get a judgment prior to a filing you can attach any funds in a bank account. Which makes it a good idea to make a copy of any checks you receive so you know which bank to serve if it happens.

Once a bankruptcy is filed all the creditors go to the same place in line behind the secured creditors.

In fact if the debtor tries to pay some friends or family members first they can be determined to have been given "preferred creditor status". And all the funds have to be repaid to the trustee. I saw one case were a debtor paid a creditor he really didn't like on purpose just for that reason. The creditor owed money to the IRS and suppliers too. The debtor paid him $100K and the creditor paid his accounts down with it all. The feds stepped in and said he was given preferred creditor status and he was given 48 hours to return it. He didn't have it and the feds seized his assets. Home, trucks etc. And yes the feds can pierce the corporate veil many times.

When you are talking thousands everyone in business should understand their states lien laws too before you need to. In my state lien rights are much different for individuals and builders. Many times liens are found to be invalid. Unfortunately with this economy this is a good time to educate yourself. It may sound cold but in this business we are selling non-essential services. They don't have to have this work done to survive. If you don't have the money don't order the work done.
 
Sign of the times guy's....get paid ASAP if you can..this is happening all around the country!!
 
Walk in the door at the start of the job withthe invoice and say " Will you be paying by cash or check tonight?" Just stand there and look at them till they answer.
 
You must log in or register to reply here.
Back
Top