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  1. #1
    Join Date
    Jan 2005
    Location
    San Francisco/Hot Springs
    Posts
    991

    Problem Customers?

    I recently took over an existing dedicated hosting business but the customers who expressed interest in staying on, are not paying.
    How long of a grace period should I give them before I cut them off?
    Should I send them to collections or just write them off?

  2. #2
    What's the grace period you've specified under your TOS?

  3. #3
    Join Date
    Jan 2005
    Location
    San Francisco/Hot Springs
    Posts
    991
    Originally posted by S-Comm
    What's the grace period you've specified under your TOS?
    Well, the previous company didn't have one specified, and since these customers came in under terms with the previous management, I'm not sure exactly how to handle it.

    I guess I am going to make this very clear in my TOS page heh.
    I'm thinking that I should charge a late fee after 48 hours?

  4. #4
    Join Date
    Aug 2004
    Posts
    199
    In the UK an invoice is due by the date on the invoice. Mostly this is 14-28 days.

    Put it this way, if you don't pay for a service how can you expect to use it? See how quick they pay when suspended

  5. #5
    Send them collection letters and give them deadlines. Depends on how much they owe, you can send them to collections agency. If you have a good TOS, you can charge them with % interest for delayed payment. If they still don't pay after your deadline, then shut down their website......

  6. #6
    Unless they contact you with a valid reason, I think 7 days past due is enough time before suspending them.

  7. #7
    Usually I give one week, if the customer was a good customer before this then I may give an additional week. So thats 2 weeks maximum. After those two weeks the account is suspended.
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  8. #8
    Join Date
    Feb 2005
    Location
    Ohio, USA
    Posts
    55
    When you take over a company, you should clearly notify all the customers to expect a release of "your terms" that will nullify all previous ones as the management is changed. You should do it in a good manner but at the same time if you do not stay alert, you will be abused my friend.

    Also keep in mind that the previous host had some bad policies that took them down, DO NOT FOLLOW THOSE.

    Best Luck !
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  9. #9
    Join Date
    Jan 2005
    Location
    San Francisco/Hot Springs
    Posts
    991
    Originally posted by ozone_mark
    When you take over a company, you should clearly notify all the customers to expect a release of "your terms" that will nullify all previous ones as the management is changed. You should do it in a good manner but at the same time if you do not stay alert, you will be abused my friend.
    Sound advice, I will certainly do that.
    I'm hoping they're just lazy, and not abusing my goodwill heh.

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