Author Topic: Late Payments  (Read 5054 times)

SLITTLES

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Late Payments
« on: December 15, 2013, 07:59:42 PM »
Hi All,

I have a client that has consistently paid his invoice late for the past couple of months.  My contract does include a late payment fee as well as a clause that I can stop work at my discretion if the bill is so many days late.

He seems to not mind paying the late fee and it has never gotten to the point that I have to stop work.

My question is, how long do you give your clients to pay their invoices and to actual stop working?

Thanks
Shontel Littles
" Show Me The Money"

Merry

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Re: Late Payments
« Reply #1 on: December 16, 2013, 01:13:14 AM »
My opinion. If the bill is due on the 10th, I would charge him a late fee for every day that he is late and stop work as of the 15th. Ok, I am hard nosed but it is the way I would do it and I have done it. Funny how they have no idea why the money is not coming in. By charging him for each day he is late..adds up quickly. Check state laws before you do it though.

Merry

tallmanusa

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Re: Late Payments
« Reply #2 on: December 16, 2013, 02:01:41 PM »
I have noted that taking credit cards for payments helps.
We give them an option to pay by credit card on the invoice.
If they are late, someone calls them on the tenth and gets the number and charges them.
Some people use ACH.

SLITTLES

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Re: Late Payments
« Reply #3 on: December 16, 2013, 03:50:32 PM »
They can pay by CC right from the invoice and this still does not help.

Merry that is tough but I bet you get your invoices paid on time!

Thanks for the responses!


Shontel Littles
" Show Me The Money"

PMRNC

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Re: Late Payments
« Reply #4 on: December 16, 2013, 04:28:12 PM »
Within MY contract, they get 15 days. After 15 Days they get charged late fee. at 30 days, activity stops until payment is received.   
This is outlined in my contract very specifically so there is NO guesswork.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

Medical Billing Forum

Re: Late Payments
« Reply #4 on: December 16, 2013, 04:28:12 PM »

SLITTLES

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Re: Late Payments
« Reply #5 on: December 16, 2013, 04:49:34 PM »
Oddly enough, my contract is the same.  He doesn't seem to care what it states, he just never pays on time.

Thanks to all!
Shontel Littles
" Show Me The Money"

PMRNC

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Re: Late Payments
« Reply #6 on: December 16, 2013, 04:58:02 PM »
If you do not adhere to terms of your contract, he will keep taking advantage. Remember what your contract is for.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

Merry

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Re: Late Payments
« Reply #7 on: December 16, 2013, 10:09:28 PM »
I got messed over by a doctor many years ago. Though I am not actively billing now, I totally changed my contract and played hard nose with the money.
Now, as a consultant, I am billing twice a month.

Aha..just recalled. I had a doctor that I billed every week. I brought back his previous paperwork from the week and got a check. If no check, I did not take the paperwork for the next week. It only happened once.

Merry (I am really nice..just don't mess with money with me

PMRNC

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Re: Late Payments
« Reply #8 on: December 17, 2013, 04:09:29 PM »
I learned too.. ONCE late.. always late. TECHNICALLY I can terminate with the first time they are past 30 days, I do allow some wiggle room. If they have 2 or more payments in a row late(30 days), they get a termination letter. If you habitually allow it, they will habitually take advantage.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

tallmanusa

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Re: Late Payments
« Reply #9 on: December 18, 2013, 10:09:44 PM »
Some people are using ACH.
Is that advisable?

Medical Billing Forum

Re: Late Payments
« Reply #9 on: December 18, 2013, 10:09:44 PM »

PMRNC

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Re: Late Payments
« Reply #10 on: December 19, 2013, 09:36:05 PM »
Quote
Some people are using ACH.
Is that advisable?

I think this depends.. I have MIXED feelings on this.. I had one client who I setup on reoccurring charge basis using ACH through my merchant acct.. started out smoothly but later on became a pain because I was charged when transactions declined.. after a few months of this off and on I stopped it. I have ONE client right now who does all his payments with his paypal and it's there on the 11th OF every month, like CLOCK WORK .. been with me for about 5 years now.   I think if you have a good provider who wants to set it up, go ahead, give it a shot, work it into your contract with terms to allow you room to cancel ACH or even charge for declined transactions. I think this is something you have to see works for you. I am pretty lucky with clients I have now as I have not had any issues with non payment in a long time.. but I have had providers in the past who I could NEVER see this working for. Just analyze the client base you have and past payment history to see if it's something that would benefit your business. Now you can even do credit checks :)
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

KarenH

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Re: Late Payments
« Reply #11 on: December 20, 2013, 04:10:53 PM »
I had one client that would pay a partial portion of the monthly statement. The client started out paying in full within 10 days of their statement then would start sending in partial payment. Obviously that didn't work for me- it was stated in my contract that payment was due in full in 10 days from the invoice date. Needless to say that client is no longer with us.
What does work for us is EFT into our business account the payment is normally in the account within 1-2 days after I issue a statement. Our other clients make sure their payment is here in under 10 days.
I have used the late fees which is either the flat amount stated on in my contract or the % that is allowed by my state. Thankfully I have very few problems and if I do the late fee starts immediately, anything that's in my contract is followed.

Medical Billing Forum

Re: Late Payments
« Reply #11 on: December 20, 2013, 04:10:53 PM »