Past Due Invoices

Have any of you come across this…

We’ve been delivering food to a local hospital for the past 3 months. We do about $3k a month in business from them.

The problem is they’ve been so behind with the payment. I was told that the payment processing time would be about 2-4 wks which I was ok with.

Out first orders for them were in April, by June I started questioning them about payment and the coordinator was very nice about it and said she’ll check into it.

Finally, 2 1/2 months after the first order, I got a call from the a/p dept saying they need a I-9 from me to put me in their system. And so I did and 2 weeks later (end of June) I got a check for the april invoices.

May and June’s invoices are still outstanding and the coordinator who does the ordering is extremely apologetic and said that is we need to cut down on the food orders she’ll understand.

We certainly don’t want to loose this account as its our bread and butter right now being in business for only 4 months and not delivering.

I just realize that we have to pay our sales and use tax for 2nd quarter and we haven’t even got paid yet.

Should I put a penalty for any future invoices paid after net 30 ? And if so, what are the percentages and how should I go about this without upsetting them. Thanks in advace for any inputs !!

It’s a hospital - that’s the problem. They operate with a TYPICAL process of paying people in like 90 days.
I’d buckle down, be polite, take the business, and expect slow payment.

The norm when dealing with the hospital industry on a terms business is around 60-90 days. Call the Controller. She/He allocates the a/p generation list and a nice chat with some concern will help you.

PD

Ask what kind of pizza she likes when you go to pick up the check…RCS…

Or maybe drop off a turkey club wrap.

PD