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Thread: How you deal with non-paying customers? Reply to Thread
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  Topic Review (Newest First)
02-12-2012 06:01 PM
cleannet2242 Don't ever buy a CLEANNET USA of Tampa Franchise. Ed Stickland who is the owner dosn't not pay, he promises you all the business and never delievers. Ed strickland avoids phone calls and hides behind his secretary if you show up at the office. Ed Strickland of Cleannet of Tampa is a Scam Artist. All of his employees quit.. he is horrible to work for. I am posting this because i don't want to see anyone else lose their hard earned money. Ed strickland of Cleannet usa of tampa stole 23k from me and my wife, and i am now awaiting a court hearing.
02-08-2012 09:49 PM
randywood60 If it is a persistent thing happening with the same people, drop them. That's absurd.
02-07-2012 09:29 PM
Alice Hello. This reminds me of an experience I had 3 years ago. A friend of a friend refused to pay a single cent because he claimed that we "missed" to clean a spot under a carpet. and I couldn't do anything but just charged it to experience. As I read this article, how to make sure you always get paid. I realize the importance of contracts in every business. As it is your only recourse. It should include everything you agree to do, and a clause that explains that anything outside the agreed-upon scope will require a new contract. As well as before starting a job, we shouldn't be hesitant to ask for a down payment. For I also believe it establishes trust in the transaction for you and the client.
12-28-2011 03:11 AM
Stuart
Bed Debt :

In this condition we consider them a bed debt and do not make further business deals with them.So let me tell you that we make credit after a number of deals so we do face such a condition very rare times.
12-13-2011 07:41 PM
fanman That's very disrespectful for someone to not even pay you if you missed a spot on the carpet. Geez. Have you're customers pay up front or have some type of form that they sign saying that they will pay you regardless
12-10-2011 03:37 PM
Dmreed4311 Take the customer to court and add on all your fees to the cost!
12-06-2011 06:05 PM
browneigh IRS Collection System


Article reprint (national media) Click here

Want technical information? Click here

Q: Is this legal?
Q: How does this work?
Q: Does this work with commercial accounts only?
Q: What if they won't fill out the W-9 or provide their tax ID number?
Q: Is it best to use this in writing or verbally over the phone?
Q: Does this work with bankrupt companies or individuals?


Q: Is this legal?
A: You bet it is. Your firm's loss becomes your customer's gain, and as such, can be reported to the IRS on Form 1099-C as income to the debtor. You see, debt reduction (even partial) represents accession to wealth, clearly realized, and is considered taxable income. Refer to IRS Reg. S1.61-12 (discharge of indebtedness). We received Case #63-0501-0029I from the U.S. Treasury Dept (TIGTA) to confirm that the system was not in violation of any usage or misrepresentation issues. (back to top)

Q: How does this work?
A: You mail or fax the IRS collection letter along with IRS Form W-9 (Request for Taxpayer Identification Number) then follow-up with a phone call to explain that if you are not paid in full immediately you will have no option but to write it off and report to the IRS on a Form1099 which will cause an audit risk for the recipient. This is due to the fact that the IRS routinely runs computer matches of the 1099s sent in by creditors against the tax filings of the identified businesses. (back to top)

Q: Does this work with commercial accounts only?
A: No. The technique is equally effective on retail/consumer accounts, including medical, bank loans, bad checks, educational, etc. We have prepared a special retail IRS letter for your use. (back to top)

Q: What if they won't fill out the W-9 or provide their tax ID number?
A: Refer them to page two of the W-9 (Penalties), which cites a $50 federal fine for willful neglect in not providing the requested information. Further, there is a $500 federal fine for providing false information, plus both civil and criminal penalties including imprisonment. (back to top)

Q: Is it best to use this in writing or verbally over the phone?
A: You will be provided with complete instructions, scripts and examples. Obviously, if you don't have a working phone number you will use the written approach. It is best to follow-up with a phone call by using the exact scripts provided after faxing the letter and Form W-9. (back to top)

Q: Does this work with bankrupt companies or individuals?
A: On the accounting side, you cannot report debt cancellation income against an insolvent debtor. On the collection side, it makes no difference. The IRS collection letter states "we will at our option, issue the Form 1099-C to the IRS . . ." which enables you achieve full collection impact without having to forward the W-9 to your accounting department. (back to top)
12-06-2011 04:38 PM
Tonydclean Bottom line it's all about being pationt and asking your money with all the tips mentin above

Great Post and greater answers
12-03-2011 04:10 PM
browneigh
Use the IRS to makem pay.....

I'm not affiliated with these guys. I bookmarked this years ago, it might be useful to someone.

http://www.stevensricci.com/irs_advantage.html
10-06-2010 07:13 AM
SimonNewton Yeah right, let the customer to remorse, if it is possible
10-05-2010 08:06 AM
Alexgman
Quote:
Originally Posted by SimonNewton View Post
Hi guys. I want to ask you what are your methods when someone of your customers don't want to pay because he think that you missed a little spot over the carpet... I'm looking forward for your suggestions.

I too follow what Brian said. Just forget the money and never deal with that guy again. For small amount I don't recommend legal actions.

If you have time better tell the guy that you are ready to clean the carpet again if he is ready to pay. If he agree it is nice or just forget that guy forever.
10-02-2010 07:48 AM
HBF If you have a signed contract, you can take him to small claims court to recoup, but many times it is not worth it. If the amount he owes is small, i would do what Brian suggests and just move on to focus on other clients.

If you wish to pursue small claims court, send him a certified letter stating you are willing to clean the area you missed at his earliest convenience for free. Also include that he has an outstanding balance. Include a dated bill with the correspondence. This way you have proof that you offered to clean the area which will be his defense in court.

Good luck!
Stacy
http://www.businessformsstore.com
09-20-2010 04:16 AM
SimonNewton Thank you Brian, your info is really useful and I think that I'll try the second one because it's better to lose a payment from 1 person than to charge all of my customers before the service is done. So thank you again Somebody else...?
09-15-2010 11:44 AM
Brianm4289 wow, I just realized that you are looking for opinions on what to do IF you have a non paying customer haha I misread it the first time and thought you said you were dealing with it right now. But still my information is somewhat informative lol
09-15-2010 11:36 AM
Brianm4289 Im still in the process of starting a cleaning business so I dont have experience with this exact problem, however I was in the retail/sales business for about 8 years and sometimes we would make products for customers that would either refuse to pay after it was already made for them or just never come back again... so the only options really are 1.) take payment first, which in this business doesn't seem anybody would agree to. 2.) just realize that some people will be idiots and take the loss of the money for the job, and focus on other customers and not deal with this guy again. it doesn't seem like it would be worth legal action or making this guy completely furious and ruin your business by word of mouth so I would probably say "oh sir I am sorry that you feel that way, since you are not satisfied I will not charge you for that cleaning" thats about all I can think of
09-15-2010 04:08 AM
b-fly You can require a credit check by your new customers
09-15-2010 03:52 AM
SimonNewton
How you deal with non-paying customers?

Hi guys. I want to ask you what are your methods when someone of your customers don't want to pay because he think that you missed a little spot over the carpet... I'm looking forward for your suggestions.

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