[ScoMac]

I currently have a client that is past due on their account over 60 days and coming up to thier next bill which will push them to 90 days past due. I am having trouble getting communication from them. My question is how should I handle suspending their service (web hosting)? Should I send them a letter with a drop dead pay in full date to prevent service interruption and if not paid turn off their website until paid?

Has anyone had to deal with this? What would you suggest?

Thanks,
ScoMac

[roto]

Originally Posted by ScoMac

I currently have a client that is past due on their account over 60 days and coming up to thier next bill which will push them to 90 days past due. I am having trouble getting communication from them. My question is how should I handle suspending their service (web hosting)? Should I send them a letter with a drop dead pay in full date to prevent service interruption and if not paid turn off their website until paid?

TBH, I would have turned their website off at 30 days. Revise your policy and make all invoices due upon receipt. It's much less of a hassle. After all, when you create a website for them, when it's finished do you say, "I'll have it up for you in 30 days."? Digital work is most often delivered upon completion, and clients should pay accordingly. That's just my opinion and/or 2 pennies.

[ScoMac]

I forgot to mention that this is a monthly retainer maintenance aggreement based on a annual contract. So they signed on for 1 year of maintenance and web hosting for 12 months, but opted to pay monthly.

[d*d]

Originally Posted by ®oto

After all, when you create a website for them, when it's finished do you say, "I'll have it up for you in 30 days."?

30 days is pretty standard and can be a pain in the arse for the company to make exceptions and it will go against you, if the company proves to be a late payer like this one, then you can revise your policy

You shouldn't wait 60 days to take action though, and I would definately suspend hosting - and send a letter (if you can't get them on the phone) saying you have done so.

[ksudesigner]

I have a client who was consistently late like this. The solution I had the last time they wanted me to do a project was to require them to pay a percentage of the bill up front before I would begin any work for them. It worked out well, they paid 100% up front without a hassle. I had my check in about 3 days from them, as opposed to the 4 months it took the project before. Another thing to consider is adding a late fee, like a certain % per day, week, month, whatever you choose. Once they see their bill start climbing simply because they haven't paid it should get their asses in gear.

[pgo]

50% up front, 50% within 10 business days (2 weeks) of completion.

In your case, it's a month-to-month thing, so if their payment came due on the 12th of Jan, I'd give them a grace period of 1 week. I'd send a reminder on the 13th, shut it off on the 19th and don't contact them until they contact you.

Also: In your specific case, I'd write them an email (or call, fax, whatever) right away and tell them they have 48 hours to get a check to you or their website is shut down. It's been long enough.

[neil3eye]

Suspend their hosting (would've done that after 30 days myself) and revise your policy to state that you'll do this and also charge the same % on late bills as your bank would charge/pay you interest. Thats always worked wonders for me.

[Brown]

you lot will get a wake up call one day. 30 days is nothing. removing someone's site b'cos they have not paid within 30 days is, imo, childish.

there is no law that states you must pay within 30 days. jsf, its a contract that is entered into between yourself and your client, be that a verbal agreement, an email or the t&c's stated on your invoice. don't think that just because you put 'payment within 30 days' on your invoice that anyone will pay that any attention - you need to agree conditions like that before you start any work and if money is that much of an issue to you, then ask for half up front.

get with the real world.

in this case i would re-invoice them and add 8% and send it by registered post. if you don't hear from them within 2 weeks then take it all down - don't make rash decisions, all businesses go through quiet patches and you don't want to lose it all. remember that word of mouth recomendations are the best way for you to get new business.

[d*d]

Originally Posted by Brown

you lot will get a wake up call one day. 30 days is nothing. removing someone's site b'cos they have not paid within 30 days is, imo, childish.

True, but this has been 60 days and contacting them is getting difficult, I think that if you cannot get response and sort a revised payment schedule it's acceptable not childish to consider suspending the service.

[Brown]

how do you know that contacting them is getting difficult ffs? its not you and its not your client. neither of us have any idea of the terms that the contract was entered into, the value of the contract or the working relationship - all these things need to be considered before you tell someone to 'take the site down'.

all i'm saying is, in the real world, 60 days is still quite common. get used to it now to avoid tears later.

[Dusteh]

I agree with Brown, 60 days is not an excessive amount of time. True its time you dealt with the matter, but taking their site down is an extreme measure best reserved as the last resort after at least a couple of clearly worded written warnings.

The larger the company, the slower they can be for payment as well I have found. A few phone calls could well sort it all out.

[briljant oranje]

Originally Posted by Brown

there is no law that states you must pay within 30 days.

http://www.businesslink.gov.uk/bdotg...mId=1073792169

read down the page to:

"payment terms - if you don't agree a credit period with your customers the law sets a default period of 30 days"

[ScoMac]

Thanks to everyone for replying. I was hoping to get a range of opinions and ideas, that of which I did. I appreciate what everyone has said. So here is my take.

The subject company is a small "mom and pop" company. They conduct business via the site I built/host. They also conduct business via outside sales in parallel with the site. What I am going to do is invoice them on the the 15th, they're invoice date with the past due 60, past due 30 and current due amounts along with late fees. However since this invoice will mark the start of the 90 day countdown, I will be requesting payment in full upon reciept. If I hear nothing within 7 days I will send a notice that payment must be received to prevent suspension of service.

I do not care to be cut throat, however after 60 pluse days with 3 months due there tends to be a significant amount of money in which I am expecting. At somepoint the client has to be held accountable. The reason to turn to suspension of services is simply because my calls and my emails neither have been returned.

Again thanks for all the input.

ScoMac

[briljant oranje]

fuck that. cut the stingy runts off and then they'll pay.

you also have the right to claim 12.8% interest for every day (after the 30) that it's overdue.

and £40 in debt litigation costs should you need to pass it on to a debt recovery agency.

sorry, but some clients are willing to chop and change briefs daily, hurrying you along and being really impatient - yet when it comes to coughing up for what you've worked hard on they're suddenly really relaxed. If your a sole trader or small agency, they're likely to take advantage of you all the more as they think you won't take any legal action as it could cost you.

take a strong stance and don't get walked all over for fear of pissing them off.

[d*d]

Originally Posted by Brown

how do you know that contacting them is getting difficult ffs?

Originally Posted by ScoMac

I am having trouble getting communication from them.

sigh

[Brown]

[oli]

our smiles not good for you now eh ?

[pedge]

Originally Posted by ScoMac

So they signed on for 1 year of maintenance and web hosting for 12 months, but opted to pay monthly.

Aren't they in breach of their contract? If thats the case, and you've chased them up, just pull the plug - you'll be amazed how quick their communication problems resolve themselves.

I'm not being childish and I agree with Oranje - your terms are your terms; they agreed to them and they broke them. Whats the point of having terms and a contract if you don't uphold them?

You're not a charity, you're a business and you need to make money - it pays your bills and feeds your family. They're doing the same - they're running a business and feeding their family so why are you letting them walk over you? That's just adding insult to injury.

I have to say I'm somewhat lacking in sympathy for customers who drag out paying their bills because last year I was seriously fucked over by three customers (one large, two smaller businesses) and lost a total of £8,000.

One was a new start and we bent over backwards to help them out and then they decided once the bill was due that it would be a good idea to not answer our calls and reply to our emails. As a result they've just been landed with a £180 solicitors bill on top of their debt.

Another was a long term customer (over 4 years) who we were on good terms with - or so we thought. Payment was delayed due to various factors; change of accounting system, accounts payable on holiday and then, lo and behold, bookeeper had terminal illness and was in once a week - and always forgot to process our payment. Turns out the business was terminal and we got shafted big time when we found out that they went bust. Also turns out that the guy who ran it is still a director at the BNI of which we were a member of. How nice is that?

I've learned that you need to stick to your guns; get money up front and remainder on completion. If its a monthly or annual thing and you don't want to seem cut-throat, make out that someone else holds the lead to the server plug and you have to play by their tune and so they have to play to yours. Pull the plug and when they come running tell them straight - you've covered their costs for a month but you can't do any more until you've been paid. If they're put out then I'd have serious thoughts about whether they're a stable company.

Don't be guilt-tripped into giving them another month or so, you may as well just give them it for nothing.

After all, whats the point of having a client if they don't pay?!

[lyndon]

fax and email them a warning that their hosting and maintenence will be suspended within 24 hours should payment now be received.

then suspend them if you don't get payment - excuses don't pay the bills.

[roto]

Or ask yourself, if they cause this much trouble, are they really worth it? If you have other accounts, a good benefit is that you can pick & choose your clients...but don't make it a habit.