5%

Nobody would ever pay a late fee. I generally agree with everything rank said, especially the part about introducing a solution to a problem you don't have. Why bother? I just charge an extra 25% in the first place as part of the all-in rate. I collect that amount every time, whether they're fast or slow.

 

Nobody would ever pay a late fee Then my bank account balance must be lying , I get a laugh at what everyone comments on without ever trying it , you would be surprised at charges I charge and get paid for with my customers.

 

I've had a similar footer on my invoices since day 1: "All invoices are due upon receipt. Interest at the rate of 2% per month will be charged on overdue balances.Thank you for your business!"

You posted about your late fee collection before I did that last one. You should go buy a lottery ticket and see if your luck is on a run. I've had that on there for three years and almost 700 invoices. Number of invoices with extra on them for a late fee payment? Zero.

As far as collecting in general, yeah good customers will pay anything that's justified. Good customers wouldn't need to pay a late fee in the first place, nor would I make an issue of it if they didn't pay it. Not saying it isn't justified, but 2% isn't worth burning a bridge over. When I pester a customer and burn that bridge it will be for something that matters. Like the whole invoice going over 60 days, for example.

 

Well, OK I used to have a note like yours and Red's on the bottom of my invoices but then we changed billing software and I never bothered to put the note back on because not a single broker ever paid it anyway. I figure the ones who pay on time pay on time and the ones who don't aren't going to be deterred by a little note. But I will look into putting that note back on there.

As an example, I have spent probably 10-15 hrs chasing a 2 year old $400 TONU charge and permit reimbursment from a broker called LLI Linehaul out of Ontario, Canada. That is time I will never get back. I have a rate confirmation and the whole deal. I reported them to Link Logistics/DAT Transcore and Truckers Edge but all they do is "monitor the account". They don't follow up after only one report. No addendum or note in the world will get them to pay me. Yes I could take them to court but that is more time lost.

 

Red its not the 1st time that I EVER COLLECTED the late payment interest fee so my luck on a LOTTERY TICKET is not an issue , and been at it a lot longer than 3 years and 700 invoices and very few so called BURNT BRIDGES

 

And they would most likely pay the 2% off rate 30+ days later

 

OK you win.

I never claimed to be in business longer, nor that your claim was false. I posted the stats to address your remark "I get a laugh at what everyone comments on without ever trying it ." So laugh at someone else.

Truth be told, out of those 700 invoices, probably less than 3% went long enough to even qualify for a late charge. Zero were customers that I do business with on a regular basis.

It's my opinion that the late fee line on an invoice is only good for a twist of the knife in a bond collection or civil suit. If your customers just pay it, or they like it when you bring it up and collect it, good for you.

 

You can put your term for the late fee but it will be your responsibility to send the broker a month end statement with an interest charge on it. All of my suppliers have something written on the invoice and statement in regards to interest charges, but they don't all apply a charge to my statement if I am late making a payment so I won't willingly give them any extra. The same goes to you. Unless you send them that statement they aren't going to send you money without you asking.

If you look at a lot of the paperwork they won't pay until they have received the paperwork in good order from you so it is also on you to be prompt on your invoicing.


The other thing to look at in regards to when you get paid is, it doesn't matter if you get paid in 30 days or 60 days. As long as you are consistently being paid the cash will continue to flow. If you find you are being paid at 60 days most often than base your cash needs on that and considering being paid at 30 days or earlier as a bonus.

 

"it will be your responsibility to send the broker a month end statement" That's standard business practice for a properly run operation