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  1. #1
    Join Date
    Oct 2013
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    AdminCP
    Posts
    429

    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?

  2. #2
    Join Date
    Jul 2006
    Location
    Australia
    Posts
    3,809
    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.

  3. #3
    Join Date
    Mar 2014
    Location
    London
    Posts
    261
    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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  4. #4
    The other questions is, what is it costing you? Are you loosing money on this? How much if any etc.
    Hosting And Designs L.L.C. Online Since 2002 --> https://www.hostinganddesigns.com
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  5. #5
    Join Date
    May 2015
    Posts
    688
    Quote Originally Posted by BeZazz View Post
    It depends on how long they have been a client.
    @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.
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  6. #6
    Join Date
    Jan 2010
    Location
    Lithuania
    Posts
    1,115
    Couple of days after due date should be enough even for slowest customers especially if you generate invoice 5-7 days before due date.

  7. #7
    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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  8. #8
    Join Date
    Apr 2016
    Location
    UK
    Posts
    1,596
    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.

  9. #9
    Join Date
    Apr 2011
    Location
    Cybertron
    Posts
    10,484
    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

  10. #10
    Join Date
    Feb 2016
    Location
    Charlottetown, PE, Canada
    Posts
    237
    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
    a: CCHosting, Inc | Delaware, 2035 Sunset Lake Road
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  11. #11
    Join Date
    Apr 2011
    Location
    Cybertron
    Posts
    10,484
    Quote Originally Posted by ServerSitters_JohnMC View Post
    Dang, WP.

    People refer sometimes, just to keep the mess off their own porch.
    Quote Originally Posted by ServerSitters_JohnMC View Post
    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.
    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

    Quote Originally Posted by ServerSitters_JohnMC View Post
    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.
    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.

  12. #12
    Join Date
    Oct 2013
    Location
    AdminCP
    Posts
    429
    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

  13. #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.
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  14. #14
    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.
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  15. #15
    Join Date
    Oct 2004
    Location
    Oneida, NY
    Posts
    2,849
    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

  16. #16
    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

  17. #17
    Join Date
    Nov 2014
    Location
    London
    Posts
    202
    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

  18. #18
    Join Date
    Apr 2016
    Location
    UK
    Posts
    1,596
    Quote Originally Posted by Zweeko View Post
    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
    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.

  19. #19
    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.
    This ^^; however, for those that do not fall into this bucket, I give 7 business days for them to reach out to us. If we get no response, we suspend them. After 15 business days with no response, they are removed.

    Bill

  20. #20
    21 days is a bit too much as an extension.

  21. #21
    Join Date
    May 2007
    Posts
    337
    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!

  22. #22
    Join Date
    Nov 2016
    Posts
    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

  23. #23
    Join Date
    Jan 2016
    Location
    Bucharest
    Posts
    91
    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.
    Global Services - Better Services!
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  24. #24
    Join Date
    Aug 2005
    Posts
    3,587
    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.

  25. #25
    Join Date
    Nov 2007
    Location
    New Jersey, USA
    Posts
    4,740
    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.

    - Daniel
    Last edited by BeZazz; 11-12-2016 at 02:19 PM.

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