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Ever Sent Anyone To Collections?

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  • Ever Sent Anyone To Collections?

    Anyone? I would love to hear your time-frame, etc.

    I have an owner who is going on 30 days of not paying for braiding, a little under $400. I invoiced at the show, waited around until about 9 am and finally just went home (I was exhausted after working all night). Sent her asst (the one who hired me) a few texts over the week complete with address, etc. Last Sunday I email the owner and put a copy of the invoice in the email along with address and all contact information. I received a response apologizing, saying she had my invoice just no address and thanking me for sending the address. Well, it does not take 4 days for the mail to get here from two cities up the highway away.

    I claim my income so I have the option of just not dealing with it and sending the bill to collections. I manage receivables for two of the campuses at work, I am very familiar with WA State collections law and how to send letters of notice with the proper RCWs before sending it off to collections. I even know which collection agency I would use thanks to their great track record with my work, they pay me the entire original amount due and then assess ridiculous fees on the original amount to make their money. SO, I am thinking of starting the process by sending out the first of three letters notifying of intent to collect on Monday.

    The owner is kind of a "BNT/O" in the area, all of you will know who it is should I reveal any detail. Let's just say it could be an interesting show season next year should I do this. However, my livelihood does not depend on braiding. Another issue is I have no other issue with these folks! I genuinely like them. But dang, 30 days to pay a bill and I feel like I am being blown off.

    A little outside perspective please

  • #2
    I'd email AND post her another reminder, with invoice attached - if no response, then go for it.

    Comment


    • #3
      Well, I think you might be accused of being a little heavy handed if you sent her to collections right now. When I was running my own business, my contracts almost all read payment in 45 days. I realize you have different payment terms, but I think I'd either give her another few days OR go pay a call in person. It's much easier to dodge emails than a person standing right in front of you.

      But, if after all of your patience you still don't have the $$ in a week, give her one last warning and then do it.

      Just don't be surprised if there isn't some negativity on the braiding circuit after you set the collections people loose on her. Not that she doesn't deserve it.....!

      Comment

      • Original Poster

        #4
        45 days does seem like a good number.

        It's funny, can you imagine telling people you were mad that someone sent you to collections? Then everyone would know you didn't pay your bill!

        Comment


        • #5
          Talk to her on the phone or in person.

          Debt collectors do it for a reason. People are much more comfortable lying when the communication is less personal. Call her every second day and politely say "That check you said you'd mail yesterday was not in today's mail. Did you by chnace forget to send it?"

          Comment

          • Original Poster

            #6
            Oh tangled, I'd call once but I don't want to have to hound. Much easier just to send it to collections than waste my time calling all over, KWIM?

            Comment


            • #7
              Follow up and wait at least a few more days, . If you just sent her the address last weekend, she might just have taken a few days to get the check in the mail. I know my mom has one day of the week she pays bills/sends checks. After you get the check, you can email/call/whatever and say "Thanks for sending the check. In the future, payment is due x days after service. Looking forward to doing business with you again". While obviously I try to pay all bills ASAP, sh!t happens and sometimes I forget/misplace invoice/thought I paid, etc. Doesn't mean I intend on not paying, or that I'm usually late to pay. She may have completely forgotten or thought she sent it and didn't. It doesn't hurt you to follow up again, but it certainly can hurt your business to send it to collections. I know I would not want to hire someone who sent another client to collections after a month.
              .

              Comment

              • Original Poster

                #8
                I think you're right, and I don't mind following up again, probably Saturday as that would make a week.

                Just as an FYI, before being assigned to a collection agency I would have to send 3 letters notifying of intent to collect. So even if I started that on Monday, it would be another month before the debt was even placed at a collection agency.

                Comment


                • #9
                  30 days past due is not that much past due. I wouldn't think of sending to collectors until it was at least 60 days past due - I would send them another notice stating payment due upon receipt/accounts past 60 days will be subject to being sent to collections.. Horse world is small, if you send a BNT to collections... don't be surprised if your braiding business dwindles - which is sad, someone doesn't pay their bill and you get punished. Not right,

                  Comment


                  • #10
                    I do hope you are assessing them a late fee if they are late...other service providers do.
                    America dialed 911. Donald Trump answered the phone.

                    Stop pumping money into colleges and start getting ready to earn money in the projected tradesman shortage of 2024. Make Trades Great Again!

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                    • #11
                      Originally posted by Big_Grey_hunter View Post
                      ... I know I would not want to hire someone who sent another client to collections after a month.
                      Absolutely this. I can't imagine initiating collections procedures that quickly, even though I fully recognize you said the process itself takes the 3 notifications and therefore another month.

                      Could you go to collections at this point? Yes. But would I personally support businesses that were that rigid? Not likely. Stuff happens, and this bill isn't even 30 days quite yet. I realize you probably generally get paid on receipt/at time of service, but so many other business models would give a client 60 days before even threatening collections or interruption of service, so that's a comparison/perspective.

                      This is a good client and big name in your area, by your description -- don't you want to cut them a little slack? Have they used you before, and if so, have they ever paid late before? If they have used you before and NOT been late, reward their loyalty and good custom by being a little flexible.

                      In future you might have to stick it out and wait for payment at time of service (realizing you will be very tired and ready to go home, but better than going through later hassle), or perhaps consider adding in a late fee for bills over 30 days, etc. -- terms all spelled out in advance.

                      I doubt you are being blown off. Probably just got put on the back burner, even after your conversation with the owner on Sunday. I'm not saying they are right, just that stuff happens and sometimes it's good to be a little flexible.
                      If thou hast a sorrow, tell it not to the arrow, tell it to thy saddlebow, and ride on, singing. -- King Alfred the Great

                      Comment


                      • #12
                        Just on a side note: A letter can very well take over a week to get down the road while sometimes across country arrives before you mailed it...it's weird that way.

                        Comment


                        • #13
                          Originally posted by RubyTuesday View Post
                          I do hope you are assessing them a late fee if they are late...other service providers do.
                          I agree. Make sure to send another bill WITH the late fee, and the fee on top of that if it's another 15 days late. Then maybe a note it goes to collections at 60 days or something, just so they have notice.

                          I know my vet does this. All of the people with lots of money never pay their bills. She maxes out her small claims court suits for bills not paid.

                          Comment


                          • #14
                            Funny how some people want you to perform a service right then but take their own sweet time paying you for it. We own a small business and have had a client or two "forget" to pay us for our services. Next time around, they are asked to pay upfront before we render services. IMO, it doesn't matter if braiding isn't your primary income, not paying you in a timely manner still adversely affects your finances in one way or another. To me, owing 30 days on a bill means your not top priority until the next time they want you to braid. As far as you loosing business if you send their bill to collections, word travels fast in the horse world. There will come a time that no one will braid for them if this trainer gets a rep for slow/no pay.
                            Why do those who feel a tyrant was elected as President, seek to disarm the population?

                            Comment


                            • #15
                              Exactly why I quit braiding on the side for extra $. I am talking 1 or 2 that live in the barn where I board. When it got to be the 3rd, yes shame on me, 3rd time I had to wait around for money once I finally got paid I kindly told them to find someone else.
                              I don't always feel up to arguing with your ignorance

                              Comment


                              • #16
                                Is this the same trainer you recently agreed to braid for again? I personally have never heard of a private person sending someone to collections. I think they take a large percent of anything you collect, like 40%? I have gone to small claims court a few times and won but never collected a single cent of my judgments.
                                McDowell Racing Stables

                                Home Away From Home

                                Comment

                                • Original Poster

                                  #17
                                  Beenthere, I like your vets way, thank you!

                                  Laurie, no that is not how it works. And no, different client.

                                  This owner shows a different discipline, these are sale horses that she bred and owns.

                                  Comment


                                  • #18
                                    Originally posted by Laurierace View Post
                                    I think they take a large percent of anything you collect, like 40%?
                                    The OP seems to know a collection company that charges teh person owing so she will get the whole amount.

                                    This is from her original post:

                                    Originally posted by twotrudoc View Post
                                    I even know which collection agency I would use thanks to their great track record with my work, they pay me the entire original amount due and then assess ridiculous fees on the original amount to make their money.

                                    I think the OP is being a little impatient. I too would be impatient because I agree that you should get paid at time of service. But being the business that it is, if you run to collections so quickly you will most likely ruin your chances of having a full braiding card.

                                    Comment


                                    • #19
                                      And in the future, your bills should have a due date printed on them, along with something like "payment is due no more than 30 days after service rendered".

                                      I think in horse world it's inexcusable not to pay promptly. I feel terrible if I have to ask someone to hold a check for 2 days before they cash it. We all know that for the most part no one makes any consistent money in horses, and that every check is spent on hay, vets, and feed before it's even in the bank, so it's the least we can do to not screw over our fellow enthusiasts. It's just not cool.
                                      I tolerate all kinds of animal idiosyncrasies.
                                      I've found that I don't tolerate people idiosyncrasies as well. - Casey09

                                      Comment


                                      • #20
                                        Originally posted by Lori B View Post
                                        And in the future, your bills should have a due date printed on them, along with something like "payment is due no more than 30 days after service rendered".
                                        This sounds like the braider is willing to wait 30 days to get paid.

                                        I think if you add something about due with in 30 days of service you have to add something about bills not paid at time of service will be assessed a $10 handling fee, etc.

                                        Comment

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