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Late Fee's for Clients??

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PTBILLER:
Hi Michelle-

I have my own billing service and send out invoices to my clients on the first day of the month.  It is very clear in my contract as well as on the statement that payment is due by the 10th of each month.  I've experienced (several times) late payments.  Do you use late fees?  Hold their claims?  I try to keep an excellent relationship obviously with my clients, but this is so annoying!  I have bills too!! Any suggestions?

Alice Scott:
I think we all run into this problem.  Some providers just do not pay on time.  We have had a very few who never paid us.  We ended up sending two to collections but never collected anything.  It's very difficult to collect out of state.  I've always hated to endanger a relationship by adding late fees but have found some providers don't mind the late fees.  They just don't want to pay when it is due.  Many doctors are not good businessmen.  We now call the office and speak to the doctor when the bill gets late.  We just explain that we need to pay our workers and are counting on their payment.  We ask when we can expect it.  I think it is important to stay on top of it as it is even more difficult to get them to pay when they owe for two or three months worth of work.  It's a touchy subject.  I would like to hear how others have handled this situation.
Alice

PTBILLER:
Hi Alice-Thanks, I'm glad I'm not the only one to experience this annoying habit.  If anyone else has any pointers, please let us know. Thanks

PMRNC:
Check your state laws. Some states will allow you to charge a "percentage" as Interest and others a flat fee. Depends on the state the provider is located in.


Linda Walker
PMRNC
www.billerswebsite.com

keekadee:
one thing that I noticed was I was getting more payments when I changed clients due dates from the beginning of the month to the 20th it made it easier for them to spread payments. Most big bills, rent car note insurance is due on the 1st leaving people strapped until there next paycheck.

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