I run a small business and I send out an invoice once the job is finished. I do not run accounts, but generally l just have my fingers crossed that payment will follow soon after the invoice is issued.
Quite often l am waiting weeks and sometimes months for payment to be made (even though i don’t run accounts) I fully understand that people are doing it tough and they will pay when they can (even though l often needed it yesterday) the fact is l do my best to remain a decent person and give my clients some space and some time to pay the bill.
Never have l forward a bill on to a debt collection agency, nor have l ever charged a “LATE FEE” and l assume it is the same for most small business owners out there……. it is highly unlikely any small business owner would be charging late fees and l also assume debt collection is always a last resort.
Yet these “BIG” corporations seem to be making an absolute killing out of late fees. While l do not know the figures, it would be fair to assume the late fee totals would be a considerable sum of money added to the bottom line of many of these big corporations who charge a late fee.
We have a credit card and quite often we are a day or so late in making the payment, we get slugged with a $25 late fee charge. When you consider the amount that was due to be paid (around $180 or so) a fee of $25 for being a few days late is ridiculous and obscene.
Late fees are being charged by all sorts of big corporations, credit card companies, electricity companies, phone companies and the list goes on.
To my way of thinking, there are 2 x main reasons for a customer being late in making a payment. It is either because they have simply forgotten the bill was due, or alternatively they are struggling and need a few extra days to find the money to pay the account.
If you have been slugged a $15 -$40 fee for being late because you “forgot” the bill was due, it is an excessive penalty for being forgetful.
If you have been slugged a $15-$40 fee for being late because you “don’t have” the money to pay the bill on time, it is an excessive penalty which only makes it harder to pay other bills on time.
I am sick to death of big business / big corporations making more and more money by treating us consumers as a bunch of cash cows. Government should be stepping up to the plate and legislating for a better and fairer go for us all.