Collecting money

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starsandstripes

Member
Location
SE Michigan
For customers who are 30, 60, or 90 days late, can I report them to one of the credit agencies? Does anyone think the warning of a black mark on their credit report will get my money to me any faster? I will not be doing business with this customer again. Thanks.
 
mdshunk

mdshunk

Senior Member
Location
Right here.
starsandstripes said:
For customers who are 30, 60, or 90 days late, can I report them to one of the credit agencies?
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I send them to a collection agency. They take a hefty cut when they collect, but it's money I'd likely have never seen anyhow. The collection agency takes care of reporting them to the credit bureaus. Honestly, I don't get too many. Don't get too wound up over the 30 and 60 day late people, unless you have lots and lots of them. Just send another invoice or phone if you get a chance.

Consequently, how do you end up billing so many people? Don't you collect at the time of the service? Or are these GC's that owe you for ruffs and such?
 
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starsandstripes

Member
Location
SE Michigan
Thanks

Thanks

I generally get paid at the time of service, and haven't had any serious problems yet. I was just looking for some info to stay ahead of the game. Do you ever get that feeling someone is going to screw you over?
 
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allenwayne

Senior Member
starsandstripes said:
I generally get paid at the time of service, and haven't had any serious problems yet. I was just looking for some info to stay ahead of the game. Do you ever get that feeling someone is going to screw you over?
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Every day but it`s uncle sam :)
 
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hardworkingstiff

Senior Member
Location
Wilmington, NC
Before turning things over to a collection agency, try exercising your lien rights. I believe you can find an attorney to file one for you for $100. It really gets the attention of the property owner.
 
hey_poolboy

hey_poolboy

Senior Member
Location
Illinois
big vic said:
I am 6 foot 8" 290lbs..........I get money when owed
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Do you hire yourself out to other EC's as a collector? Could be a good living in that.

"knock, knock"
Hello Maam, I see here you owe "so and so electric" $239.85, how would you like to pay that today?
:grin:
 
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jeff43222

Senior Member
Location
Minneapolis, Minnesota
Getting paid on the spot is the way to go, but I occasionally have situations where I finish the job while the homeowner isn't home. In those cases I have to send an invoice, and sometimes people are pokey about paying. In general, though, it hasn't been a problem. I only had one case where I had trouble getting paid, but I got my check shortly after they were "invited" to discuss the matter in court. :D

Look into the lien laws where you are. Also, someone once posted that they sent people a 1099 if they didn't pay, as it was a cost to the EC. I'm sure getting the IRS involved got their attention.
 
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jeff43222

Senior Member
Location
Minneapolis, Minnesota
hey_poolboy said:
Do you hire yourself out to other EC's as a collector? Could be a good living in that.

"knock, knock"
Hello Maam, I see here you owe "so and so electric" $239.85, how would you like to pay that today?
:grin:
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I know an EC who acts as his own collection agent. He just goes to their place and demands payment immediately.
 
stickboy1375

stickboy1375

Senior Member
Location
Litchfield, CT
I know a plumber who will only insist on MC/VISA for trouble calls, saved him a lot of wasted time... Nothing worse than pulling a well pump in the middle of winter and not even get paid for it....
 
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bkludecke

Senior Member
Location
Big Bear Lake, CA
Occupation
Retired Electrical Contractor
The 1st step is to pick your customers more carefully. We turn down alot of work for people who seem shakey. Going to court is a looser for everyone (except the lawyers). Sometimes the customer thinks they were overcharged and we can negotiate a lower price or a payment plan. And sometimes it's best to 'write it off ' and move on.
 
infinity

infinity

Moderator
Staff member
Location
New Jersey
Occupation
Journeyman Electrician
Being in New Jersey we just ride over to Bada-Bing and "ask" for some help. Collecting never seems to be a problem.

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GUNNING

GUNNING

Senior Member
Location
Gainesville, Florida
I use a collection agent also. I send a demand letter, and a copy of the new invoice with the collection agents fee which is 30%. If they thought it was expensive before that really gets their attention. I give them 10 days to pay me. After 11 days I fax over the account to the agent and within a week I get paid. I look good cause I'm not calling at 6 PM during dinner and I'm not sending the dunning notices and I'm not reporting them to the credit reporting companies. Its a good deal.
 
growler

growler

Senior Member
Location
Atlanta,GA
bkludecke said:
The 1st step is to pick your customers more carefully. We turn down alot of work for people who seem shakey. Going to court is a looser for everyone (except the lawyers). Sometimes the customer thinks they were overcharged and we can negotiate a lower price or a payment plan. And sometimes it's best to 'write it off ' and move on.
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I couldn't agree more. Choose your customers and never spend a dollar trying to collect a dime.
 
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kmc

Member
I was told by a plumber, for a really difficult customer he will just call the local police and file for the "theft of services". In one case he hooked up the plumbing for a temporary trailer on a construction site, the subcontractor started to jerk him around telling him he was waiting for money, etc., and he would just have to wait also. So the plumber called the local police and filed a report. The police gave the deadbeat was seven days to pay or go to court. Somehow he found the money to pay. Have never tried it myself here in NJ, but it seems like a promising way to go.
 
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MJJBEE

Member
In other business ventures I have found that a collection attorney will do wonders to get a debt payed(I don't know about the contracting business as I'm not one). In my rental business I almost always get payed within 60 days. Taking peoples personal property (cars) tends to make them pay pretty quick.
 
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