Time to use a contract

[arbor pro]

First of all - though you might have the right to get all steamed up, it won't help you to get paid. surely, dumping a load of debris in her driveway isn't going to get you paid either. It might make you feel better in the short-run but it won't get you cash in hand.

Think like a businessman. That's what you decided to become when you went into business for yourself. This kind of thing happens. I've been in business for over 20 years and this happens at least one time every year. I use contracts, I talk about payments and financing before the job starts, I make sure the client fully understands that I expect to get paid 'x' dollars in 'y' time frame.

99% of the time, the collection process is relatively painless. Sometimes, customers are literally forcing money into your hand even before you finish the job. But, we soon forget those 'wonderful' customers when old mister 1% comes along and doesn't want to pay his bill.

I've had to take up to 12 months before to get paid by some customers. It was that or nothing. I'll take $100 a month plus interest over $0 per month plus having to go to small claims court any day.

If you're just starting out, I feel for your financial position. it's tough living job to job. When customers don't pay as expected, it can really put a damper on your own finances. Stick with it - things will get better. Just don't take it so personally. This $hit happens to EVERY business owner at some point.

All this said, I do have to agree with the comment that FIRESMOKE made. If you're living on that tight of a budget, you can still do nice things for the sweetie without spending your last dollar. You always need to leave yourself a cushion in the bank account in case of this kind of situation of even just a simple accounting error. You don't want to be joining your deadbeat customer in the county jail for bouncing bad checks all around town...

 

[Stein]

Then she dropped the bomb that she would have to pay me in cash 2-3 hundred dollars at a time, making me think it could be weeks before I get my money.

What would you do?

TAKE THE MONEY!! Get the $2-300 now. Right now you are sitting at maybe never getting $500. At least that way you may only lose $2-300. Arrange to meet her at the bank today.

 

[arbor pro]

TAKE THE MONEY!! Get the $2-300 now. Right now you are sitting at maybe never getting $500. At least that way you may only lose $2-300. Arrange to meet her at the bank today.

Actually, with the $1000 check that bounced, right now he's sitting at $0 received from her. $200-300 is better than $0. Small claims is always an option but, even if he gets a judgement against her for $1500, it's not as if she just hands him over $1500 as soon as the judge's gavel falls. He may still end up taking payments of $200-300 at a time.

If she's willing to make payments, take it. Get $200-300 PLUS 18% annual interest every month (always charge financing over 30 days) and, in about 6 months, you'll have your money. Though it may take longer, it still adds up to the $1500 you agreed upon. The interest collected will cover YOUR cost of borrowing against a credit card or bank line of credit in the interim in order to make your own bills.

That brings up another point...Lines of Credit (LOC). Most banks will provide you with an LOC on your checking (business or personal) with secured collateral. You put up $5000 in collateral, they give you a $4000 (80%) LOC in case your checking ever dips below into the red. You only pay interest on the amount of the LOC that is deposited into your account until the time you pay it back off. The amount you pay in interest (at say 8% annual rate) is way less than overdrafts on your checking or return check fees if a check is returned for insufficient funds.

LOCs also come in handy for equipment purchases. I carry a fairly large LOC so, if a great buy comes up at an auction or online, I can buy the item with the funds already approved through the bank via my LOC. No having to 'run' to the bank to get approved for a loan and risking losing out on the deal.

Of course, LOCs typically only work if you have some collateral to secure the LOC. If you're broke and have didly squat to your name, the bank will probably limit your LOC to just a few hundred bucks - just enough to cover an occasional dip into the red with your checking. There is usually a $25 or so annual fee (sometimes more) for an LOC but, if you find that you're constantly getting overdrafts or return check fees, this might be a better option that is at least worth looking into.

 

[Little Monkey]

First of all - though you might have the right to get all steamed up, it won't help you to get paid. surely, dumping a load of debris in her driveway isn't going to get you paid either. It might make you feel better in the short-run but it won't get you cash in hand.

Think like a businessman. That's what you decided to become when you went into business for yourself. This kind of thing happens. I've been in business for over 20 years and this happens at least one time every year. I use contracts, I talk about payments and financing before the job starts, I make sure the client fully understands that I expect to get paid 'x' dollars in 'y' time frame.

99% of the time, the collection process is relatively painless. Sometimes, customers are literally forcing money into your hand even before you finish the job. But, we soon forget those 'wonderful' customers when old mister 1% comes along and doesn't want to pay his bill.

I've had to take up to 12 months before to get paid by some customers. It was that or nothing. I'll take $100 a month plus interest over $0 per month plus having to go to small claims court any day.

If you're just starting out, I feel for your financial position. it's tough living job to job. When customers don't pay as expected, it can really put a damper on your own finances. Stick with it - things will get better. Just don't take it so personally. This $hit happens to EVERY business owner at some point.

All this said, I do have to agree with the comment that FIRESMOKE made. If you're living on that tight of a budget, you can still do nice things for the sweetie without spending your last dollar. You always need to leave yourself a cushion in the bank account in case of this kind of situation of even just a simple accounting error. You don't want to be joining your deadbeat customer in the county jail for bouncing bad checks all around town...

:agree2:
I always send a written quote mainly because one thing people are always trying here is ""I thought the price was v.a.t. inclusive""
and i can show them in black and white it was not,

 

[Stein]

Actually, with the $1000 check that bounced, right now he's sitting at $0 received from her. $200-300 is better than $0.

Ahhh, I misread that. Sorry. I thought the account being negative $500 was the $500 check that had bounced. My bad.

 

[Raymond]

:computer:Thank goodness the ones that care about their trees usually have the money.
I like it when people are home dizzy:SOMETIMES) when we do their jobs. Always being happy with our work and would never think of cheating us.:agree2:

 

[Stihl Alive]

I've collected 1k in cash so far and she gave me a $500 check last week to assure me I would have the last payment tomorrow. I spoke with her today and we plan to meet just like last week. She's going to give me an extra $50 for my trouble. Then she'll just tear up the check.

Yeah, that bounced check took me back a step with that checking account, and I had to bend some straws to still take my wife to the spa. But I have nuts hidden everywhere. If something serious happens we'll be fine.

In the end calm prevailed and everything is fine. Spas are weird.

 

[SLlandscape]

Sorry to hear that. Owning a business has soooo much extra b.s. involved. (Yes it does)I give mad credit to those who are doing business on their own. You all put up with a lot of headaches that the employee just does not realize(Yes we do, with out a doubt). Hope you have a good Valentine's man. That sucks.....if she's willing to pay at all, I would take what she will give. You'll get your money eventually. It ain't fair, but it's better than nothing. Maybe someone else will have a better idea on if reporting her would help or not(it does to an extant).

.

 

[SLlandscape]

Not to bust your stones, but ........if your on that tight of a budget perhaps you should'nt be going to the spa? My wife and I would have loved to get a way for V day but deciced on spending a nice evening at home. No to the point at task, When I was in business I had a guy give me the go ahead on nice job only 3 blocks from my place (yes I had a contract) when the time came to pay his wife gave me the run around about she did not know her husband was spending that much money and I would have to wait for payment. It took them over 3 months to pay. In that three months I must have stopped in at least a dozen times since it was so close to home. Twice when I was there the Mrs. comes home with all kinds of take out food and shopping bags from the local mall, and once I stopped on a suterday and no one was home a neighbor told me that they went away for a lonf weekend.
After hearing this I went through the roof with them and explained a simple little thing called responsibility and integrity and assured them that since they were local and so was I we would sooner or later end up in public at the same place and I was surely not going to be afraid to bring up the money he owed me in front of his friends or family or other community members. Amaing how quick I got paid after that.

Did that this summer. Got my money in 2 days.

 

[SLlandscape]

:agree2:
I always send a written quote mainly because one thing people are always trying here is ""I thought the price was v.a.t. inclusive""
and i can show them in black and white it was not,

SAme for me. I find excel is the easiest way of making a bid because that way you can show them what the exact cost will be. And like you said Little Monkey, they can't use an excuse.