The 30-day net clause I laughed at just saved me $4,800

I used to send bills with no due date and hope clients paid when they felt like it, which meant chasing people in Chicago for 60 days. Last fall a contractor friend made me add a 30-day net term with a 1.5% monthly late fee, and I got stiffed by a property manager who tried to drag it to 90 days. Has anyone else seen a late fee clause actually scare a slow payer into sending cash fast?

2 comments

2 Comments

anna7172d ago

My buddy Dave runs a plumbing company in Denver. He added that exact same clause last winter after getting burned twice. One of his commercial clients, a restaurant chain, owed him $6,200 for a big pipe job. They tried to hit him with the 90 day stall tactic. He just sent them a copy of the signed contract with the late fee math written out. Check came in four days. He said it was the easiest money he ever collected.

robinc6016h ago

Put the fee math right in the contract so nobody can argue later, works every time.