Late fee...What is your fee for overdue accounts?

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Luc

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Nov 1, 2002
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Elliot Lake
www.a1florists.com
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Ontario
After noticing the amount teleflora is charging me on my overdue account I got to question maybe I am not charging enough on my house accounts. Teleflora is chargin 3%. I am curently charging 2% 24% annually. So am I in the "norm" so to speak or am I off base?

I Think 3% is a little bit excessive.

Luc
 
Luc, mine is the same as yours, 2%/mo or 24% annualy, but I have mine set at a $5.00 minimum. This helps to cover the rebilling postage, paper and labor.

Never had one complaint yet. I have my system set to atuomatically credit the charge off, if payment is recieved less the SC. (saves on bookkeeping issues)

A friend of mine, a plumber bills 2 days after the job, payable in 7 days or a $15.00 rebilling charge is applied.
 
2% is not 24& annually, if you charge interest on the interest. (we do, therefore 26.82% annually)

Our system is the same as Boss - except a $2 min fee.

Ryan
 
Infinite said:
2% is not 24& annually, if you charge interest on the interest. (we do, therefore 26.82% annually)

Ryan
Click to expand...

I do not "compound" interest on interest. System is set to not add service charges to services charges. Thus if the bill is 100.00 and a 5.00 SC is added, the next month the new SC is only figured on the original 100.00.
 
We simply charge a $5 rebilling charge.
 
:newbie I Simply Only Take Credit Cards... Except Corporate Accounts, And Even Those Have Corporate Credit Cards....
No Tickey, No Lickey.......
Its Hard At First, Took Me 3 Years To Convert My Customers, But Now They Tell Me That I Have To Take A Credit Card.
Try It You'll Like It......
Just Tell That You Had A Meeting With Your Banker And That You Both Agred That The Bank Would Stay Ou Of The Flower Business If You Out Of The Credit Business....
 
Rather than pay into our state funds and federal if we used a % charge, we just use a $3.00 rebilling charge, soon to go to $4 or $5.
 
BOSS said:
I do not "compound" interest on interest. System is set to not add service charges to services charges. Thus if the bill is 100.00 and a 5.00 SC is added, the next month the new SC is only figured on the original 100.00.
Click to expand...
flowerSoft, by default, does not compound the interest charge. In other words, no finance charge on a finance charge, but we do allow for a minimum finance charge or re-billing charge. So if the interest charge on an account is $3 and your re-billing charge is $5, flowerSoft will charge the account $5.

I know that banks and credit card companies compound the interest charge, that is why it is so hard to get out of credit card debt, but I've read of cases where the courts have reduced the total amount owed by the amount of these compound charges.
 
Rebilling Fee Only

We charge a $3.00 monthly rebilling fee. It is my understanding that if you charge interest on an account, then you are required by federal (US) banking regulations to have the customer sign "Truth in lending" forms prior to the charging of interest.
 
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