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Past Due Invoices

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reaper

Freshman Member
Joined
May 15, 2008
Professional Status
General Public
State
Arizona
We have some regular clients that are a little slow in paying their invoices. If we don't collect at the inspection we always bill NET30. I tend to send out a notice at around 45 days or so.

I have one client that has 10 files that are unpaid that range from 35-60 days from delivery of the report and one that is over 100 days. Don't want to be a nag but I want to get paid.

Just curious to know how some of you handle this?
 

Vernon Martin

Senior Member
Joined
Jun 8, 2005
Professional Status
Certified General Appraiser
State
California
I just send an e-mail entitled "overdue invoice". No one seems to be offended, and it has worked every time except once, and that will be heading to court.
 

Delta85

Elite Member
Joined
Sep 22, 2007
Professional Status
Certified Residential Appraiser
State
Connecticut
Some of these clients just don't care anymore. They'll string you along as far as they can and maybe pay just before it becomes a small claims matter or collections or whatever.

I had one client that kept me busy with steady work but slow paid. It took on average 6 months to be paid for reports. Then he stopped paying anything altogether. After threatening action (the balance was over $3,000) he finally agreed to pay in full over the course of 3 monthly payments. The part that kills me is this moron had the nerve to act like I was the bad guy and acting unprofessional!

I've greatly reduced my invoice business over the lastcouple years and do mostly pre-pay or COD.
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Generally, we abide by the following rules:
  1. Established banking clients: We bill.
  2. Municipal clients: Bill (If they don't pay, then we obviously have problems much greater than our profession:laugh:).
  3. Mortgage Brokers: Paid up front, no exceptions.
  4. AMCs: Pay up front, no exceptions (not that we actually do work for them because they won't accept our fees, turn times, and won't pay up front).
  5. Established attorney clients: Bill, with exception of divorce cases.
  6. Private individuals: Generally bill, though we will make exceptions on a case-by-case basis.
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
By the way, if an AMC tells you that they can't pay until closing, they may be lying. I checked on that one myself with various lenders. The ones I checked with have agreements in place stating to the contrary.
 

jtinmichigan

Member
Joined
Feb 7, 2008
Professional Status
Certified Residential Appraiser
State
Michigan
Send them a letter stating that your next communication will be with your states Attorney Generals office, and/or the state regulating agency for MB's. Include the name and address of either or both of these within the body of the letter e.g.
[FONT=arial, helvetica, sans-serif][FONT=arial, helvetica, sans-serif]Michigan Department of Attorney General[/FONT][/FONT]
[FONT=arial, helvetica, sans-serif]Lansing Office[/FONT]
[FONT=arial, helvetica, sans-serif]G. Mennen Williams Building, 7th Floor
525 W. Ottawa St.
P.O. Box 30212
Lansing, MI 48909
Main Number (517) 373-1110
[/FONT]
Consumer Protection (517) 373-1140
[FONT=arial, helvetica, sans-serif]Toll Free (877) 765-8388
[/FONT]
This most always works for me. And then if they still don't respond, follow up.​
 

Ruben Ramon

Junior Member
Joined
Dec 29, 2005
Professional Status
Certified Residential Appraiser
State
Michigan
I would suggest that you have a policy change. I NEVER invoice without a prior written agreement outlying what the terms of an invoiced appraisal are. My terms are as follows, they are personally responsible for the debt, any dispute has to be in writing within 7 days from the effective date of the appraisal, third, they are responsible for any attorney fees, and lastly, terms are net 30, 2% monthly (one percent less than the maximum apr allowable in michigan).

Then they have to give me their home address, registered business address, social security number, business banking information and three credit references.

You should do something similar...you will know up front who will pay, and who will not pay. Better than knowing after.

As for me, I would get an order from them, do it, finish it, and then tell htem that they have to pay me before they get it.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
We have some regular clients that are a little slow in paying their invoices. If we don't collect at the inspection we always bill NET30. I tend to send out a notice at around 45 days or so.

I have one client that has 10 files that are unpaid that range from 35-60 days from delivery of the report and one that is over 100 days. Don't want to be a nag but I want to get paid.

Just curious to know how some of you handle this?

Reaper,

First, I'd pluck out all my feathers, dip myself in batter, and then toss myself in a deep fat fryer for being dumb enough to allow anyone at all to have a credit account at my expense. You a lender? Did you get a credit application? Did you run a credit check?

Next, I'd send them a nice reminder letter saying I expect payment in 10 days. On the eleventh day I'd send them a certified demand letter telling them failure to pay will result in an immediate complaint filed

Here:

Arizona

State Banking Department
2910 North 44th St., Suite 310
Phoenix, AZ 85018
602-255-4421
Toll free: 1-800-544-0708
Fax: 602-381-1225
www.azdfi.gov

they now have five days to pay. On the sixth day I'd file a complaint. On the seventh day I'd send them another certified letter demanding payment, a copy of the complaint I filed with the banking department, and informing them they have four days to pay or I will next be going after them for theft of services....

on the fifth day after they got that letter..............

Webbed.

P.S. Remember, the Japanese after WWII believed business is war.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Send them a letter stating that your next communication will be with your states Attorney Generals office, and/or the state regulating agency for MB's. Include the name and address of either or both of these within the body of the letter e.g.
[FONT=arial, helvetica, sans-serif][FONT=arial, helvetica, sans-serif]Michigan Department of Attorney General[/FONT][/FONT]
[FONT=arial, helvetica, sans-serif]Lansing Office[/FONT]
[FONT=arial, helvetica, sans-serif]G. Mennen Williams Building, 7th Floor
525 W. Ottawa St.
P.O. Box 30212
Lansing, MI 48909
Main Number (517) 373-1110
[/FONT]
Consumer Protection (517) 373-1140
[FONT=arial, helvetica, sans-serif]Toll Free (877) 765-8388
[/FONT]
This most always works for me. And then if they still don't respond, follow up.​

Thanks JT, I copied that. Additionally you might want to tell Mr. Deadbeat that the ability to renew their license will require payment of the fee plus all late fees and interest fees.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
First, I'd pluck out all my feathers, dip myself in batter, and then toss myself in a deep fat fryer........

Sometimes Duck you are just too funny.....
 
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