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10-20-2016, 01:17 PM #1Aspiring Evangelist
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Client asking for more late payment extension
Its been 21 days since the client invoice was due. Until now hes asking for more extension like 2 days.
How long can you allow your client for late payment?
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10-20-2016, 01:50 PM #2
It depends on how long they have been a client.
If you think they are genuine.
Personally, 21 days is too long. They probably need the next 2 days to get their web site moved to something cheaper.
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10-20-2016, 01:50 PM #3Web Hosting Guru
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It's would depend on the client. If they've been a long time customer and never missed a payment I would give them all the time they need within reason. On the other hand if they constantly fall behind their payment I'd be inclined to cut my ties.
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10-20-2016, 01:59 PM #4Web Hosting Guru
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The other questions is, what is it costing you? Are you loosing money on this? How much if any etc.
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10-21-2016, 03:01 AM #5Web Hosting Master
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@BeZazz is right.
I recall one of our potential customers signed up for a free trial and when the invoice was overdue, he asked for a few days grace, which we gave him in good faith.
However, he didn't pay and when we terminated his account, he changed his name servers immediately and the website suffered no down time.Zen Hosting
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10-21-2016, 04:42 AM #6Disabled
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Couple of days after due date should be enough even for slowest customers especially if you generate invoice 5-7 days before due date.
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10-21-2016, 04:54 AM #7Web Hosting Master
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That is up to you. If your current client has been loyal to you and do not do anything against your rules - simple allow 2more days. Then you will be able to suspend account. You have a word from your client and if I were you I would trust client.
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10-21-2016, 08:07 AM #8Disabled
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Sounds like you client is in contact with you which is a good thing.
Depending on if they have been a long and loyal customer I would grant them the extension, however 21 days overdue is a little long regardless.
Your a business not a charity, you've already given this client way more time than most providers would.
I would set a date for payment and then cut him off, it's amazing how fast some customers pay once you suspend the service.
But in the end it's your call.
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10-21-2016, 10:24 AM #9Web Hosting Master
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Pretty much the same answers as above...depends on the relationship.
There are some....late after late after late, but will make a lump sum payment to catch up and stay ahead for a bit....to then fall behind. Only because this is a personal client why this is "allowed", but there has been conversations.
Anyone else...you're not their personal finance manager. If they can't figure it out, it's not your job.
I've had one instance where I had to deface a "clients" website to prove a point when it came to payment. This was a design client since hosting is no different than leasing a space....don't pay...get out. Other's will appriciate the space and pay for it. But that incident...the work was done and final payment was delayed by excuses. Excuses do not pay the bills. The person that referred the client actually laughed about it said they were a difficult person. I still wonder why they referred them to me
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10-21-2016, 11:18 AM #10Junior Guru
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Dang, WP.
People refer sometimes, just to keep the mess off their own porch. Mind you, I've also seen the 'late, pays in lump sums' kind of customer over the years. The loyalty that kind of person has is nigh-unwavering, which is why most of the vendors I've worked with usually allow for a case or two like that to coexist with their regular customers.
By and large though, just as everyone's said - do what feels comfortable. Don't let customers take you for a free ride, but also don't be heavy handed with everyone just because there's a chance someone might use your generosity to cross you.John McMullin | Business Development Manager
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10-21-2016, 11:32 AM #11Web Hosting Master
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LOL. Some mistake my calm nature as being passive...until an issue arises.The gloves then come off {if neded}. It's also why I pulled back on doing design work
It is a strange concept I've had with this business and a prior business, and that my wife has now and we talk about it all the time...clients who just can't pay on time or seem to have financial issues when it comes to payment but then will complain how expensive their vacation was thinking we wouldn't know). Even though they mess with your money, they will talk praises about you and give you solid paying referrals from just about everyone they come across. Just the income from those referrals alone outwiegh whatever they owed, to the point you almost want to just give them the account for free and tell them to just keep referring. Sadly...even though it's a good thing, it still enables their bad behaviour.
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10-21-2016, 12:45 PM #12Aspiring Evangelist
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Thanks for your input guys. He just paid the balance.
Actually he is very loyal, our relationship is beyond service provider-customer We chat very often and he have referred 2 customers
It almost caused me money because the bill from the DC has already arrived lol
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10-21-2016, 01:33 PM #13
Yes, @eriahosting summed it up nicely, so need for me to repeat or try to reword it.
Not being able to pay the bills sure can be worrying as it can lead to cashflow problems which aren't nice at all. Glad you finally got paid.HostXNow - Shared Web Hosting | Semi Dedicated Hosting | Enterprise Reseller Hosting | VPS Hosting
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10-23-2016, 07:10 PM #14WHT Addict
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It honestly depends on your business-client relation. If he has been regularly paying on-time and he is a loyal customer, granting him an extension won't break the bank.
If it's a customer who usually forgets to pay by the due date, maybe consider applying a minimal late fee.██ PremiereHost.net
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10-23-2016, 07:35 PM #15Web Hosting Master
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At the end of the day, it's about customer service.
Maybe they are just buying more time until they can move to something cheaper. Maybe they really are having a hard time paying and just need a little extra.
My general policy is to provide whatever help to my customers that I can. As others have said, the amount of flexibility is based on the age of the account, the payment history, the amount that is past due, how long of an extension they are requesting, why they are requesting the extension, etc.
The question you have to ask yourself is: What's more important to you... Risking a small loss once in awhile (where they use an extension to abscond) OR losing the good will of a customer that might bring you many more years of revenue.Big things coming soon
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10-24-2016, 02:20 AM #16Newbie
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Depends on a few things. How much risk do you have, how high is the ammount, is your client trustworthy, is this the first time, is it a client you have for years and so on. At the end of the day you need to collect your bill's in order to pay your own bill's. Personaly i handle these things with ease
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10-24-2016, 05:26 AM #17Disabled
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For sure depends, although it's struck us twice. Two of our customers who have been with us for over 1 year did us over.
One of the customer carried us onwards and said he had issues with his bank but was really migrating to another host who offered him a deal cheaper with a lower spec.. And didn't get back to our calls or messages.
Sigh
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10-24-2016, 08:41 AM #18Disabled
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This is the perfect reason why you need to set fair but clear payment dates, sure an extension is a nice gesture of goodwill but you need to draw the line and make that clear to the customers.
As what happened to @Zweeko this customer abused the friendly relationship he had with the host and it was all a deception.
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10-24-2016, 04:24 PM #19New Member
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- Sep 2016
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It's would depend on the client. If they've been a long time customer and never missed a payment I would give them all the time they need within reason. On the other hand if they constantly fall behind their payment I'd be inclined to cut my ties.
Bill
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11-04-2016, 09:10 AM #20New Member
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21 days is a bit too much as an extension.
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11-11-2016, 08:51 PM #21Web Hosting Guru
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I think every situation is different and one thing that really does matter in these situations is the customer in contact with you and it also depends on how much they are paying and how long they have been a customer.
Now when it comes to being a server they are paying you for I think you need to look at it differently, because more then a week or 2 and you would of been stuck paying for it had he not paid you. Also, who knows if the customer is actually moving elsewhere and just trying to buy time. It's a risk if you think you can take it.Hey Mikey likes it!
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11-12-2016, 04:31 AM #22Temporarily Suspended
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- Nov 2016
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- 1
It's a risk , you can generate the invoice 7 - 10 days before due date
and give him 3 - 4 days to suspend and another 2 days to terminate the service
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11-12-2016, 06:00 AM #23Junior Guru Wannabe
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- Bucharest
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We have a rule on this. If he is our customer for less than 3 months, w will only allow maximum 10 days for dedicated servers and 15 days for VPS. If he is older than 3 months, we allow all of them for maximum 30 days.
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11-12-2016, 07:13 AM #24Web Hosting Master
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no no no no it doesn't depend on who the client is. Non-paying clients are not clients, they're a hassle.
Cancel their account directly and put one of those awful 'this account has been suspended for non-payment' on their homepage. You bet they're on your phone in 10 minutes, asking for an invoice so they can pay.
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11-12-2016, 12:41 PM #25Managed VPS Experts
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We have one client since 2009. Last month he was 3 months overdue on about $3k in invoices, but we still extended it due to our relationship with him. He paid everything the other day. Usually, for a regular client we would give him about 1 week extension on the VPS if they are having trouble.
- DanielLast edited by BeZazz; 11-12-2016 at 02:19 PM.
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