Advice on dealing with a non-paying customer?

[SignAnnex]

I recently built and installed 2 illuminated sign cabinets and a wrap around illuminated awning for a customer opening a new restaurant. I received my standard 50% deposit before starting the job and a "post dated" check upon installation just over 3 weeks ago. Everything was installed on a Thursday and he asked me to wait until Monday to cash the check.

He calls me the following Monday indicating he didn't have the money in the account but he would for sure on Friday. Long story short, I've heard the same story for 3 weeks.

After the first week I've called him every other day hoping he'd get sick of hearing from me. I know from seeing the inside of the restaurant (not open yet) he's putting some serious money into the renovation.

Has anyone been in a similar situation or have any suggestions on how to proceed. I know I could get my lawyer involved, but I also know how drawn out and costly that can be.

 

[FireSprint.com]

Not alot you can do at this moment. Stay on top of him. Be respectful, understanding and CONSISTENT. Call and/or email him once or twice a week until it's all squared up.

If he's not open yet, but still in business it might just take him a minute to get things rolling.

Remember, it's just business - not personal. Don't get angry because it won't help you get your money.

Hopefully your costs are mostly covered with the deposit.

 

[SignAnnex]

Sound advice, Thanks! The guy is extremely arrogant making it hard not to take things personal, but you're right, anger probably won't get me anywhere. Fortuantely all my costs were covered with the deposit, still fustrating to be strung along.

 

[Gino]

I would insist on payment immediately. You originally stated your terms and he agreed to them. Now, because he's encountered unforeseen costs, does not mean you go to the back of the line.... quite the contrary. I'd tell him in so many words, you'd like to get paid and if it's not taken care of within 72 hours which is already 3 weeks past due, you'll have to take other measures to collect your money. Explain you understand his circumstances, but then he has to also understand yours, if he's any kind of a business person. Once he's open, he's not gonna wait a month to get paid by his customers.

Sounds like a Wimpy' syndrome........... Is it Tuesday yet ??​

 

[2B]

if close enough go see him in person, as a friendly reminder. It is easy enough to avoid calls hit the delete key on E-mails.

If you don't already have one you may want to put a disclaimer on the invoices,

It is agreed that each payment not received within the stated terms are considered PAST DUE and are subject to bear a service charge of 1.5% per month not to exceed 18% per annum. The material used becomes the property of the purchaser only AFTER INVOICES ARE PAID IN FULL. Invoices and terms start upon receiving approval for production to start

Nothing motivates a customer to pay like reclaiming your material

 

[Craig Sjoquist]

Well you have deposit... costs paid for or mostly...you have a post dated check if this full payment what are you worried about.

You can wait till he is ready, most likely when doors open shortly after or wait till he has deposited enough in account & cash calling the bank to find out.

 

[WildWestDesigns]

I have to agree with Gino.

He violated his contract. Job has been done, it's time to get paid. Now I could understand not cashing a check for a couple of days to get everything in order. Not very good business sense, but I could understand doing that to help a person out. However, at this point it just seems like he is playing on your good graces.

Unless you told him to "pay me when you can" (which I highly suggest you don't ever say that), it's been far too long. Give him a firm deadline and stick to it.

Whatever you do, keep cool. My mom always said that "once you got mad, you lost" and that is so true. Be calm, but very firm.

 

[weaselboogie]

You might want to call daily to his bank ( the bank on the check )to see if the money is in the account. The bank can't tell you how much is in there, but they can tell you if it's enough money to cover your check.

You're not going to make any friends with this guy when he finds out the money that he had planned on spending on his new chairs and tables has mysteriously disappeared out of his account to pay his off his sign.

Call the bank and if by chance the money is there, DROP EVERYTHING AND RUN TO THE BANK to get that money before he uses it. Get that check in cash and then wait for the pissed off call from your customer. You're not going to make friends with this guy, but you're going to get paid.

 

[d fleming]

Got my lawyer fixing a similar situation right now.

 

[WYLDGFI]

+1 from weasel....call every day and see if the money is there. Get paid if you have a check in hand.

 

[CheapVehicleWrap]

If the teller says "almost" ask her how much you need to deposit for it to clear.

If that don't work then Cill, Cill, Cill.

 

[ThinkRight]

On opening day, show up with a crew to take the signs back.
Magically he will find your money.
I would almost bet he has the cash in his back pocket any given day.
But the restaurant owners and managers use vendors cash as long as they can get away with it as a standard business practice.

 

[Locals Find!]

Deposit the check. If it bounces that escalates it to a writing a bad check which in most states I believe is a Felony. (Just to be clear don't spend the funds for 15 days to ensure it clears totally.)

Then he has a choice to pay you or deal with the sheriff and pay you. You win either way.

Edit: I have been forced to use this method on a few individuals (supposed friends) who I accepted checks from for the sale of some handguns too. I had cash in my hand within 3 days as a felony charge makes it illegal to posses a firearm in Florida. Which would have forced them to clean out their rather extensive collections.

 

[thesignexpert]

Has anyone been in a similar situation or have any suggestions on how to proceed. I know I could get my lawyer involved, but I also know how drawn out and costly that can be.

This is what I have done in the past...

1. Take check down to the bank that it is drawn on
2. Present check to teller and ask if the check will clear
3. IF YES, then there is no guarantee that it will still clear at the end of the day so the easiest way to secure the funds is open an account with that bank. You use the check & the bank should immediately lock the funds and put it in your new account.
4. IF NO, then cautiously ask if it would clear if you deposited X amount into the account. Believe it or not, anyone can deposit money INTO someone else' account. The bank; however, cannot and will not tell you what the balance is in the account.
5. If you can establish that a small deposit of say $200 will bring the account up to where the check will clear then make the deposit (consider it a worthy investment) and proceed to Step 3.


As mentioned, you aren't going to make a friend this way but you will get paid.
Good Luck!

 

[ChicagoGraphics]

Banks don't give that info out any longer. I would goto the bank he uses and ask the teller so see if there's enough money to clear the check he gave you if there is cash it.

 

[StarSign]

First Flag......Postdated Check!

 

[Pat Whatley]

Like Weasel said, call the bank first thing every morning and hope you get a positive answer one of them.

Never had a bank willing to cash a check made out to a business. They will, however, take the check,deduct the funds immediately, and issue you a cashier's check made out to your business.

Worst case scenario you deposit the check, it bounces, and you can sic the District Attorney's office on them.

 

[wildside]

like addie said above, if you have a check in hand, that he wrote and signed, deposit it, if and when it bounces, he is on the hook for alot more, in kansas, over 500 and it becomes a felony, plus now you have a iron clad papertrail that he wrote a bad check and the court system can take over

done it a couple times before, and it works well, nothing says pay me like a sheriff serving papers.

 

[showcase 66]

Never had a bank willing to cash a check made out to a business. They will, however, take the check,deduct the funds immediately, and issue you a cashier's check made out to your business.

Have done this a time or two to a couple clients. As long as the funds are in there they will issue the cashiers check. I have 2 clients that can only pay me in either cash or cashiers check. I also have a business account in wells fargo, Chase, and Bank of America. They are dba's under my main business so if they give me a B of A account I can easily deposit in that account if needed and they will tell me right away if they can deposit it. I try not to do this but have had to a couple of times.

 

[John in Cali]

Deposit the check. If it bounces, look into a mechanic's lien.