Hi, Doug!

Speaking strictly from my own experience, I can tell you that when I started as an independent, I anticipated that there would be slow-pays and no-pays in this business.

With that in mind, I put policies in place that were designed to reduce the number of delinquencies that we'd have to deal with.  Those include:

1) Every new client must agree to our Terms of Service before we will process their work.  We have them complete and sign a Client Services Agreement, in which they provide their billing address, the name of a billing contact person and their Federal ID (EIN).  It also sets forth our expectations as to payment, and includes language which states that we reserve the right to suspend service to delinquent accounts.

2) We allow the client to select a billing date of the 5th, 15th or the 25th of the month.  This gives the client flexiblity in planning their monthly cash flow, and gives us a more steady income through the month.

3) We have a published Pricing Schedule which includes a Preferred Client Discount based on monthly dollar volume.  You send the volume, you get the discount...period.  (Accounts must also be in good standing to qualify...another incentive to pay up.)

While these policies may seem rather strict, they help to eliminate any misunderstandings in future.  Establishing and maintaining a high standard also lets your clients know up front that they are dealing with a professional, and that your services come at a premium.

I realize this probably doesn't directly answer your question, Doug, but it's the best advice I can think of.

I hope you'll be successful in your collection efforts.

Regards,
Scott L. Perry, President
Jireh Business Information Solutions, Inc.
8775 Norwin Avenue, Drawer #194
North Huntingdon, PA 15642-2744
724.863.7270 FAX 724.863.7271
www.jbizinfo.com
SOT ID #1629