Creditors' Rights 33
Q: I’m worried that certain customers won’t pay on time while I have very loyal customers who never miss a payment. Should a late fee be built in to my credit policy?
A: The automatic answer to including a late fee is a resounding yes, but it is a good idea to air the issue with the collection staff. Debtors always request late fee reductions and because it’s “only company policy,” someone in collections may be willing to go along. But that ethic has to be nurtured with reminders, rewards and praise. Pure accident may cause an otherwise valuable customer to miss a payment. The policy should provide some latitude for waiver of these late charges as an accommodation. Otherwise a customer who has had a perfect payment record for five years and happens to be one day late with payment, may very well be angered.
*Learn more about credit policies and the Payment Gap with Bob Bernstein’s new book, Get P.A.I.D.TM A Guide to Getting Paid Faster (and What to Do if You Don’t!) at www.getpaidsystem.com
