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  1. #1
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    * What is the grace period for your dedicated hosting company

    I am wondering what grace period after the due date your dedicated server provider offers you before suspending your server.

    Please let me know how many days before the due date your provider sends out your invoices , and after late how many days before they suspend your dedicated server. We are looking to amend our policy on the matter and would like to hear what others in the industry are doing.


    Thanks in advance.
    Last edited by ceridius; 06-03-2009 at 03:58 AM.
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  2. #2
    Invoice goes out 10 days prior to the due date. Invoice reminders are sent every day past and including the due date.
    If the client contacts our billing department and requests an extension and explains the situation, there is no problem giving an extension.
    IF all is quiet and notices are ignored, then Suspension is 3 days past the due date, full cancellation at 5 days past the due date.
    We have a notice in all our invoice reminders letting people know to communicate with us if they are late. The notice is also listed in the signature of our billing department reps. on all ticket responses.

    Communication is the key.
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  3. #3
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    Quote Originally Posted by Adam_OC3 View Post
    Invoice goes out 10 days prior to the due date. Invoice reminders are sent every day past and including the due date.
    If the client contacts our billing department and requests an extension and explains the situation, there is no problem giving an extension.
    IF all is quiet and notices are ignored, then Suspension is 3 days past the due date, full cancellation at 5 days past the due date.
    We have a notice in all our invoice reminders letting people know to communicate with us if they are late. The notice is also listed in the signature of our billing department reps. on all ticket responses.

    Communication is the key.

    Thank you for your reply.
    Ceridius Networks Sales
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  4. #4
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    3 days after due datefrom a us company. From a different hosting company (europe, ovh)i only get 1 day after due date despite that i told them i had surgery and will be hospitalized for few more days they still doesnt want to prolong it to 4 days grace period until i recovered.

    i think the grace period should be extended with up to 7 - 10 days for the loyal customers

  5. #5
    Sometimes we bend our grace period for reliable and old customers.

    Keeping the grace period short would keep your customers on their toes.
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  6. #6
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    I know Gnax didn't suspend me a few times when my payment was 10 days due and I couldn't find time to notify them.

    I normally don't pay so late but it came handy when needed. And it keeps me loyal to them, because I know if I have a financial problem, my services will not go down right away.

    However when I need a server cancelled, I always check their most recent TOS and notify them properly before due date, so I don't cause them any cpanel licence payments for an unused month etc.

    For a loyal customer (of several years) with multiple servers, it's inevitable to miss a due date for a server over the course of ownership. And a longer grace period is a definite positive in these cases.
    Last edited by Harzem; 06-03-2009 at 10:21 AM.
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  7. #7
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    We also make exceptions , I am primarily looking for the industry standard for when to cut off for non-payment, and how early invoices are being generated.
    Ceridius Networks Sales
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  8. #8
    Join Date
    Oct 2004
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    Invoice usually sent 5-7 days before due date (via email..longer is snail mailed), with 5 day grace period after due date is what I have seen.

  9. #9
    I believe I get 15 days after the due date. I've only pushed that a couple times, but only got shut off after being 15 days late.

  10. #10
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    I used gnax once and they actually did not bill me for 3-4months, the reason I never pay is because i changed my credit card and i forgot to update it at my paypal account.

    They actually did not suspend me in this period of time, after 4 months they only inform us about the outstanding amount. Same goes to theplanet, (happened the same time due to my credit card details changed). They even give us another 7days to clear the outstanding amount.

    Well, for us, we normally suspend the server after 5days from the invoice due date and terminate it on 14days (2weeks time).

    We will make exceptions only for our reseller.
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  11. #11
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    invoiced 10 days prior to due date, and every day after the actual date....if we get no communication within 12 days of the due date, we typically shut it down.
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  12. #12
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    First, let me stress that we always work with long-time customers and if they contact us ahead of time - we won't suspend them.

    Our policy is invoice sent 2 weeks prior to due date with many reminders in between. We suspend after 24 hours late and terminate a few days after that.

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  13. #13
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    We send 10 days in advance, suspend after 48 hours or so and terminate a few days there-after. We always do work with our established customers and those who contact us and ask for an extension.
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  14. #14
    normally it is between 30 and 60 days grace in order to make payment before server is suspended

  15. #15
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    We send out invoice 14 days in advance, suspend after 48 hours and terminate 24-48 hours after suspension.

  16. #16
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    Quote Originally Posted by teradepot View Post
    normally it is between 30 and 60 days grace in order to make payment before server is suspended
    You guys give up to 2 months of "free" service until you even suspend a server? I think that's pretty crazy.
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  17. #17
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    Quote Originally Posted by teradepot View Post
    normally it is between 30 and 60 days grace in order to make payment before server is suspended

    No, that's actually not the norm at all.

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  18. #18
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    We give give 5 days after the invoice has been generated. But, for reliable/older customers we do make exceptions.

  19. #19
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    Quote Originally Posted by teradepot View Post
    normally it is between 30 and 60 days grace in order to make payment before server is suspended
    30 - 60 days?

    Well, good luck with your business... or are you just saying this so that other providers will follow it and you can sign up and get a free 2 months server from them?

    This is not possible in the dedicated server business at all.

    Specially 4 U
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  20. #20
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    As someone who's been through a number of servers in the past 7 years, and has seen a number of policies, I'd have to say that 7-14 is the standard "grace period".

    What is my own grace period? 5-7 days depending on the client and their history.
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  21. #21
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    I think I see some generous figures... Also remember that sometimes providers are not so organized in suspending overdue accounts as well...

  22. #22
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    I think it's fair to say 5-10 days is the industry average. We usually wait as long as our 'good' customers need within reason. However if it's a new client it's either no grace period or up to three days if we're feeling nice.

    You know the business, people often don't feel it necessary to submit a cancellation notice
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  23. #23
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    Dec 2006
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    30-60 days in this industry? yeah not gonna happen

    Our invoices are sent out 14 days prior to the due date.
    3 days after the due date we suspend the server/uplink (if colocation) and after 5 days we completly cancel the server.

    We make exceptions to this when clients contact us and explain why they are late. Every overdue notice or billing reply has a line saying please contact us to arrange payments and let us know if theres a reason for being late with payments.

  24. #24
    Another thing to consider, is who in the thread are "resellers" and who actually "owns" the equipment. If you purchase from a reseller the grace periods are going to be a lot shorter, otherwise they wind up being late on payments and owing money. Companies that own the equipment have a bit more leeway, as they don't get a bill and overages from another company. They just lose the money of the customer.
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  25. #25
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    Apr 2009
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    I would say send out invoices 15 days in advance and reminders 3 days before due date, 2 days before due date, 1 day before due date and on the due date itself. Suspension 24 hours after due date.

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