Sending Customers To Collections?

Business By sweetlayers Updated 1 Dec 2009 , 4:55pm by sweetlayers

sweetlayers Posted 20 Nov 2009 , 8:05pm
post #1 of 22

What should you do if your company does work for another business (one of those national cake delivery corporations) and they don't pay. (Work done in September) icon_mad.gif

I have sent online invoices, letters, called and spoken with the accounts payable person and NOTHING! Just false promises.

What's the next step? Anyone have a clue?

TIA

21 replies
Mensch Posted 20 Nov 2009 , 8:08pm
post #2 of 22

Beat them up.

sweetlayers Posted 20 Nov 2009 , 8:11pm
post #3 of 22
Quote:
Originally Posted by Mensch

Beat them up.




Not quite what I had in mind, but thanks. icon_lol.gif

indydebi Posted 20 Nov 2009 , 8:27pm
post #4 of 22

Is there a difference in how much you can actually get in your pocket when you compare turning them over to a collection agency or taking them to small claims court?

Texas_Rose Posted 20 Nov 2009 , 9:17pm
post #5 of 22

Lots of big businesses pay their bills quarterly. Could that be the problem?

indydebi Posted 20 Nov 2009 , 9:21pm
post #6 of 22
Quote:
Originally Posted by Texas_Rose

Lots of big businesses pay their bills quarterly. Could that be the problem?




Yikes! Net 90 payables???? That's a new one on me!

-K8memphis Posted 20 Nov 2009 , 9:22pm
post #7 of 22
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by Texas_Rose

Lots of big businesses pay their bills quarterly. Could that be the problem?



Yikes! Net 90 payables???? That's a new one on me!




Walmart.

indydebi Posted 20 Nov 2009 , 9:24pm
post #8 of 22
Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by indydebi

Quote:
Originally Posted by Texas_Rose

Lots of big businesses pay their bills quarterly. Could that be the problem?



Yikes! Net 90 payables???? That's a new one on me!



Walmart.



omg. icon_eek.gif Talk about just one more way they are squashing the little guy right out of business! Cash flow is key and a 90 day payment schedule can really kill some businesses! I. Am. In. Shock. Yet, why am I not really surprised. icon_confused.gif

sweetlayers Posted 20 Nov 2009 , 9:28pm
post #9 of 22
Quote:
Originally Posted by Texas_Rose

Lots of big businesses pay their bills quarterly. Could that be the problem?




No, that is certainly not the problem. I have been in contact with the Accounts Payable person and she has said on two separate incidents I was told, "I'm going to do pay this right now..." So I eagerly waited for the online payment and nothing. thumbsdown.gif

melmar02 Posted 20 Nov 2009 , 9:39pm
post #10 of 22

Do you have a contract with them that stipulates the terms of their payment to you, just like any other client? If they are out of those terms let know they have X days to have funds to you or you will be sending their account to collections for non payment and/or contacting your lawyer. Maybe they just don't get in and need a fire lit under their bum. icon_twisted.gif

cakesbycathy Posted 20 Nov 2009 , 10:35pm
post #11 of 22

I'm with melmar. Send them a certified letter telling them that they have 3 business days to pay you with a certified bank check or you will be forced to send their account to your attorney to pursue the matter legally.

Then I would no longer take orders from them unless you receive cash or certified check upon receipt of the order.

Find out who's the boss of the woman you've been dealing with and go directly to them.

Good luck. I hope you get paid.

sweetcakes Posted 21 Nov 2009 , 7:43pm
post #12 of 22

im no help with the collections but also give them bad reviews when you come across there sites on line and there is an option to review them.

-K8memphis Posted 21 Nov 2009 , 8:21pm
post #13 of 22

I would politely call every day. Ask the person you are talking to if they are authorized to write your check. If they are not ask who is. Ask for that person every day. Leave messages. Be consistent and not annoying--be patient but be firm.

Good Luck

Iggy Posted 21 Nov 2009 , 9:15pm
post #14 of 22

I agree with sending the certified, return receipt letter and indicate a copy is being sent to your attorney. You can file in small claims court for up to $5,000.00. If you take it to collections, they will take up to 40% or more of what is owed to you. So I would rule out collections. Sounds like they have a cash flow problem and someone is picking and choosing who will get paid and who won't. I guess utilities come first. I'm sorry but nice doesn't work here. Good luck!!

cakesdivine Posted 22 Nov 2009 , 5:20pm
post #15 of 22

Hmm, let me guess - Cakes Across America? They are notorious for non payment and extremely late payments to the bakeries that do work for them. I don't deal with them any more just for that reason. Not to mention, you have to deliver and 9 times out of 10 it is to a very bad part of town if you live in a big city. There are a couple other companies that are just like CAA and I have heard they are just as bad about paying too.

Eisskween Posted 22 Nov 2009 , 5:38pm
post #16 of 22
Quote:
Originally Posted by cakesbycathy

I'm with melmar. Send them a certified letter telling them that they have 3 business days to pay you with a certified bank check or you will be forced to send their account to your attorney to pursue the matter legally.

Then I would no longer take orders from them unless you receive cash or certified check upon receipt of the order.

Find out who's the boss of the woman you've been dealing with and go directly to them.

Good luck. I hope you get paid.




You may also want to mention in your letter that not only will you be seeking payment for services rendered, but also court costs and attorneys fees. That might give them the elbow in the ribs the need.

Sorry this is happening to you. Big corporations don't understand small businesses need the cash flow. See, big corps can always apply for a government bailout. icon_mad.gif

-K8memphis Posted 22 Nov 2009 , 6:02pm
post #17 of 22

I mean get an attorney but bug the hell out of them first-professionally though. Getting the attorney means you just lost more money not to mention control.

Call call call call call call--it's the squeaky wheel as the saying goes.

Little drops of water
Little grains of sand
Make the mighty ocean
And the pleasant land

cylstrial Posted 23 Nov 2009 , 2:06pm
post #18 of 22

I also say send them a letter and tell them that if you don't get the money by such and such a date, that you're going to be turning the information over to your attorney. Also send a copy of the contract to remind them of the late penalties and such.

travelingcakeplate Posted 25 Nov 2009 , 3:51pm
post #19 of 22
Quote:
Originally Posted by cakesdivine

Hmm, let me guess - Cakes Across America? They are notorious for non payment and extremely late payments to the bakeries that do work for them. I don't deal with them any more just for that reason. Not to mention, you have to deliver and 9 times out of 10 it is to a very bad part of town if you live in a big city. There are a couple other companies that are just like CAA and I have heard they are just as bad about paying too.




What would make these companies go bust or have no cash flow? It's not like they are buying cake supplies. Plus, the mark up is RIDICULOUS! icon_evil.gif

cakesdivine Posted 25 Nov 2009 , 5:44pm
post #20 of 22

I have no idea...The only overhead they could possibly have is a website maintenance, maybe an office rent if they aren't doing it from a home, and an accountant if they too aren't doing that themselves. I don't get it either. Also their stock quarter sheets start at $79! or at least they did back when I was on their list of bakeries to call. And they charge tax & delivery on top of that. I always found it very odd that a person in a bad part of town living in govt. assisted housing could afford to order one of these cakes especially when there was a grocery store within walking distance! Only once did I do a delivery to an affluent part of town (River Oaks in Htown) for CAA. I handed the recipient a business card and told them to contact me directly next time, they gave me a tip that was the cost of what I charged for the cake! I was happy about that since I never received payment from CAA for that cake, so on that one I wasn't out any money thank goodness, and the person was an EXXON exec. and the main office started ordering cakes right & left from me. So in that respect it was a good deal but I had had so many bad experiences with CAA that it wasn't worth hoping for another diamond in the rough icon_smile.gif

alvarezmom Posted 25 Nov 2009 , 6:00pm
post #21 of 22

You should first start with a certified letter reutn receipt requested. This way they know you are starting to mean business and it shows that you are keeping record of how and when you contact them. Also put in your letter if you can that on certain dates you spoke to XYZ rep and was told payment would be made that day.

sweetlayers Posted 1 Dec 2009 , 4:55pm
post #22 of 22

FYI--

I was finally paid in full yesterday. I didn't have to send a certified letter, (although I will keep that in mind for the future). However, I did have to change my tone of voice and had to stop being so darn nice.

In addition, I refused to leave a message. This time, I just held on until the AP person got tired of avoiding me.

Just thought I'd let you guys know.

Thanks for your support.

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