Install Now - Stay Cash Positive
Policy #2: Stay cash positive. Your client needs to know that when the money stops, so do you. If they forget, or refuse to pay, erase the name from your schedule board. If your client doesn't want to pay as you go, it gets legally tricky. You are obligated to inform clients of account status on a regular basis. If you forget, you may forfeit your legal right to collect past-due funds. Consult the Fair Debt Collection Practices Act (FDCPA) for details.
Policy #3: You must have a collection policy. If you've let your cash-positive position slip into negative territory, certain procedures need to kick into gear. An account is considered delinquent one day after it is due. Immediately call the client and send a letter. Our letters become progressively more severe and follow this order:
• Courtesy reminder: 30 days past due