How many of you are adding finance charges to invoices? Are you able to collect? We have not but are considering it for some clients that have a history of late payment. On the bookkeeping side they are a bit reluctant to charge them due to the hassle of removing or crediting them to balance out the books if we negotiate something else. On the larger contracts we could not charge due to the retention on the jobs which are understood to go on for a long time. Thoughts are appreciated.
From contributor Mi
One option I have put in place with customers with late payments is to raise the invoiced rate and then offer an early-pay discount for payments received within net 7.
From contributor MR
Require 85% of your money before you leave any cabinets or trim onsite. That will solve 95% + of your slow pay issues.
I went to a lawyer the other day to solve a real estate case. He required $2,000 CASH down to bill off of.
If a lawyer is doing that...