What to heck

[brian john]

In early June we did a job for a long time customer, now they have always been slow in paying and they have been bought and sold like a bad used car over the years. Recently their new payment process STINKS.

We have been trying to get paid for this job and received a call from the accounting department telling us the following. We need to realize we are dealing with a large fortune 500 firm that processes 1000's of invoices daily and therefore, it takes 12-14 weeks for precessing, 6-8 weeks for payment approval, 2-4 weeks for check writing and another 2-4 weeks for someone to sign off on the payment prior to mailing the check. A maximum of 30 weeks? Needless to day this is unacceptable but the scary part this is a bank.

I mean if a bank cannot process payments in 30 days something is wrong. If you ever bopunce a check tell them the same song and dance.

 

[hardworkingstiff]

Brian,

Did you have a contract for the job and did it have verbiage on payment terms (including interest charges and how they are accrued)? I think in this day and age, that's going to have to be a big part of all of our contracts.

 

[masterinbama]

Tell them it's going to take you 30 weeks to process your truck payment and see how that works.

 

[SEO]

Add a hefty finance charge and see what kind of reaction they have. You still may not get paid but I bet they will respond to your request and it might speed up their payment schedule.

 

[Cow]

Ask them why that's your problem? It's not your fault they don't have enough staff....:roll:

 

[George Stolz]

I'm with them - if the account manager wants to process that for 30 weeks, then I'd tell her that's fine, I will resubmit the final invoice to reflect 30 weeks of accruing interest.

 

[iMuse97]

Two ECs I worked for had 1 or 1.5%/mo. over xx days printed right into the contracts, with appropriate language to deal with various partial payments, etc.

 

[growler]

We have been trying to get paid for this job and received a call from the accounting department telling us the following. We need to realize we are dealing with a large fortune 500 firm that processes 1000's of invoices daily and therefore, it takes 12-14 weeks for precessing, 6-8 weeks for payment approval, 2-4 weeks for check writing and another 2-4 weeks for someone to sign off on the payment prior to mailing the check. A maximum of 30 weeks? Needless to day this is unacceptable but the scary part this is a bank.

That's what these people do for a living isn't it? They use other people's money to make money. With thousands of invoices they are holding on to millions of dollars of other people's money that they carry on the books for their use as long as possible.

The whole idea of banking was crooked from the very start. They found out they could actually loan out more money than the had on hand by the use of notes instead of gold. The knew that not everyone would try to cash in at the same time so they were charging interest on loaning out pieces of paper. As they say it's not bad work if you can get it.

 

[Jhaney]

I had that problem with an ex customer more than once (not 30 weeks but you get the idea), I finally got tired of it so on the last job we did for him I put in large bold print that payment is due within 2 weeks at which point interest starts accruing at 1% per day 7 days a week. Now I don't believe its legal too charge that but it got his attention and he paid me in record time. I wouldn't recommend doing that unless you don't want work from them again.

 

[benaround]

Brian,

Time for you to give them a call, to the CEO of this place and tell him/her whats going on,

and is this really the policy of this company? Just who is the 'bank' here, you or them ?

 

[~Shado~]

I'm with them - if the account manager wants to process that for 30 weeks, then I'd tell her that's fine, I will resubmit the final invoice to reflect 30 weeks of accruing interest.

I agree...but add to that...since this is a bank....

Have interest compounded daily...they do it...they will understand where you are coming from....doubt they will like it or agree to it...but business is business as they say...

 

[Pierre C Belarge]

It all boils down the the agreement that has been signed.
1. in small print, did they spell out their payment plan
2. In print, did you spell out your payment plan, including late fees, etc...
If one does not have a comprehensive agreement in writing, one will not fair well in court if it goes that far.
Liening a company for payment has its drawbacks as well, get a copy of your state laws before you go too much further, so you can understand how to win most of the battles.

Good Luck!

 

[dbuckley]

Its all bull, in my opinion.

I used to be a contractor at a number of banks.

Banks, like every other company, can get an invoice payment out the door in a few days, but every sensible company sets their finance systems software up to only actually make the payment by the due date. Its perfectly legal, is within the agreed terms, and puts the interest in the customers pocket not the suppliers.

Where the law allows, always have late payment terms enshrined in your contract.

 

[mivey]

I agree with the posts saying to charge interest. They are feeding you a line.

We had a customer who tried to pull the old "we are a large company and only cut checks after blah blah blah". We told them our policy was to cut the power off for non-payment. And we did.

Well, they had to run on backups generators until a check was cut for the bill & penalties and we restored service. They let us know that it was unacceptable for them to have to run on the generator and that they could not make timely payments like other customers. We re-stated the cut-off policy and penalty clause.

Next month: No payment again. We cut the power again. They finally got the picture. Amazingly, they were able to work the impossible and start paying their bill on time like every other good customer.

Where there is a will, there is a way. It is all about leverage and without charging interest, you have zip.

 

[macmikeman]

Go in there with a large floppy hat, a trenchcoat, and a pair of dark shades. Inform the first person behind the counter in a loud voice that you want your money right now. Slide a gym bag across the counter at her. I guarantee you will receive your money........:grin:

 

[nakulak]

the next time the bank calls you with one of their emergencies be prepared to tell them you want to be paid COD or they should call someone else (if you don't want to wait for your money)

 

[Pierre C Belarge]

I agree with the posts saying to charge interest. They are feeding you a line.

We had a customer who tried to pull the old "we are a large company and only cut checks after blah blah blah". We told them our policy was to cut the power off for non-payment. And we did.

Well, they had to run on backups generators until a check was cut for the bill & penalties and we restored service. They let us know that it was unacceptable for them to have to run on the generator and that they could not make timely payments like other customers. We re-stated the cut-off policy and penalty clause.

Next month: No payment again. We cut the power again. They finally got the picture. Amazingly, they were able to work the impossible and start paying their bill on time like every other good customer.

Where there is a will, there is a way. It is all about leverage and without charging interest, you have zip.

Once an installation is made on private property, the electrical company does not own the material or job. It belongs to the customer, whether payment has been made or not.
A couple of years ago, an EC cut the power to a building for nonpayment. He was arrested and put in jail. The final consequence was revocation of his license.
I am surprised the company you worked for did not call the police. Entering the property and cutting power is a multitude of laws being broken.

 

[AV ELECTRIC]

Wow thats a long time. My longest was 6 months or on that rare occasion never. It sounds like waiting is your only option hopefully the bank stays solvent get paid and back out gracefully from that customer on good terms maybe they will change there policy in the future. Ime wondering did you check there financial records before you aproved this lone to the bank it sounds like a great deal 30 weeks at no interest they have done well at getting free money while the working man takes another one for the gipper.

 

[benaround]

Brian, Have you entertained the idea of a government bailout ?

 

[mivey]

Entering the property and cutting power is a multitude of laws being broken.

Not if you are the POCO.

add: I'm not advocating a non-POCO to cut power. It was an illustration of how the customer could make the payment on time, they just had no reason to try until the POCO enforced the policy.