Payment question

[araucaria]

Hi,
We have small lab, my question is: what to do with the doctor who pays the statement always late and we have to call every month to collect. We expect to receive the payment on 15th of every month, they only pay next following month plus we need to call to request the payment.

Been there, got the T-shirt. IMO best to cut them loose. Think about headhunting clients who make good partnership, and on similar wavelength. 2c.

 

[TheLabGuy]

A Credit card policy these days will be a must. If you do Net-30 (where you add up an entire month of invoices into a one monthly statement),then make sure you get approval to run the credit card on the first of every month. You will still get people that want to pay with check, and that's fine...I add $100 late fee plus 5% of total bill on any past due notices. That usually makes them go to the credit card policy but some don't. I think I collected a little over 5K on late fees +5% last year alone. Easiest 5K I made

 

[rkm rdt]

I have cases invoiced in March but never delivered because of the shutdown.
I usually process the statements on the 15th of the next month. I need that money for my cash flow but the Drs haven't inserted the cases yet.
What should be my best strategy here?

 

[TheLabGuy]

I have cases invoiced in March but never delivered because of the shutdown.
I usually process the statements on the 15th of the next month. I need that money for my cash flow but the Drs haven't inserted the cases yet.
What should be my best strategy here?

We are in uncharted waters these days. I've had to contact my Docs personally and develop a strategy for each outstanding balance, including the ones who have cases done but aren't sent out because they aren't in the office. I usually contact them on the premise that I have cases completed and if they want me to send them to their house (just in case the temp falls off). Then I'll ask about payment if I think it's going to be an issue with that specific Doctor. I'm being very lenient with them because it is crazy times and I can financially for the time being. Ask me in a month and I'm sure this will be changed. P.S. I did pay all my bills for the month, they should too in my opinion but some won't.

 

[rkm rdt]

We are in uncharted waters these days. I've had to contact my Docs personally and develop a strategy for each outstanding balance, including the ones who have cases done but aren't sent out because they aren't in the office. I usually contact them on the premise that I have cases completed and if they want me to send them to their house (just in case the temp falls off). Then I'll ask about payment if I think it's going to be an issue with that specific Doctor. I'm being very lenient with them because it is crazy times and I can financially for the time being. Ask me in a month and I'm sure this will be changed. P.S. I did pay all my bills for the month, they should too in my opinion but some won't.

Yes, we're all in a holding pattern. Holding the bag it seems.

 

[TheLabGuy]

Yes, we're all in a holding pattern. Holding the bag it seems.

Yep, we are...and I don't know how financial institutions do it in Canada but here in the USA we have this thing called a 'business line of credit'. It's a loan from your bank, but it's used like a credit card with much lower fees. When all this was happening last month I went immediately to my bank and increased our limit of our line of credit. I doubled it, I'm hoping I don't have to use it but it's there and took a pant load of stress off me until all this government programs get figured out and gives you some breathing room. Also, it's something that can be done quickly, like within 48 hrs in most cases. I'd suggest all of us do this...especially with accounts receivable out there in limbo. Be financially responsible with it, if you can't keep a credit card in your pocket without running that thing on max all the time then I wouldn't suggest this for you. However, almost all of us are financially responsible and this is a great little fix to your stress level till everything pans out. Hope it helps.

 

[rkm rdt]

We have that too.
The government is securing a 40k line of credit with no interest. Pay it back before 2021(?) and they will waive 25%.

 

[TheLabGuy]

Yep, we are...and I don't know how financial institutions do it in Canada but here in the USA we have this thing called a 'business line of credit'. It's a loan from your bank, but it's used like a credit card with much lower fees. When all this was happening last month I went immediately to my bank and increased our limit of our line of credit. I doubled it, I'm hoping I don't have to use it but it's there and took a pant load of stress off me until all this government programs get figured out and gives you some breathing room. Also, it's something that can be done quickly, like within 48 hrs in most cases. I'd suggest all of us do this...especially with accounts receivable out there in limbo. Be financially responsible with it, if you can't keep a credit card in your pocket without running that thing on max all the time then I wouldn't suggest this for you. However, almost all of us are financially responsible and this is a great little fix to your stress level till everything pans out. Hope it helps.

Hey @JMN and @Travis, I can change the signature, look below...thanks

 

[TheLabGuy]

We have that too.
The government is securing a 40k line of credit with no interest. Pay it back before 2021(?) and they will waive 25%.

That sounds like a program they rolled out due to the virus??? The line of credit i'm speaking about has been around forever, long before the virus, hence why I suggested doing it because it's not something you have to deal with the government, just you and your financial institution which makes it very quick to do.

 

[rkm rdt]

That sounds like a program they rolled out due to the virus??? The line of credit i'm speaking about has been around forever, long before the virus, hence why I suggested doing it because it's not something you have to deal with the government, just you and your financial institution which makes it very quick to do.

Yes we have both. The virus loc is through the banks but secured through the government..

 

[TheLabGuy]

Yes we have both. The virus loc is through the banks but secured through the government..

Interesting...They kind of did it that way here...gave it a fancy name, Payment Protection Plan (PPP). They took your payroll for a month then times it by 2.5 and you can use that pay mortgage, rent, lease, payroll, utilities only and all that money will be forgiven (turned into a grant). Only hiccup is that you have to bring all your employees back by June 30th currently (subject to change). So obviously, we applied for that as well, but it's going to take time to pan out and I'd suggest anyone doing this in the USA, make sure you put all the PPP money into a separate account. That way nobody (especially the government) can say you used it for something other than the items i listed.

 

[rkm rdt]

Interesting...They kind of did it that way here...gave it a fancy name, Payment Protection Plan (PPP). They took your payroll for a month then times it by 2.5 and you can use that pay mortgage, rent, lease, payroll, utilities only and all that money will be forgiven (turned into a grant). Only hiccup is that you have to bring all your employees back by June 30th currently (subject to change). So obviously, we applied for that as well, but it's going to take time to pan out and I'd suggest anyone doing this in the USA, make sure you put all the PPP money into a separate account. That way nobody (especially the government) can say you used it for something other than the items i listed.

They have changed the amount of support 3 times. The government and opposition have to ratify the legislation before it can take effect.
Still waiting for the ability to apply. Meanwhile the nightmares continue to keep me up at night.

 

[TheLabGuy]

They have changed the amount of support 3 times. The government and opposition have to ratify the legislation before it can take effect.
Still waiting for the ability to apply. Meanwhile the nightmares continue to keep me up at night.

Hang in there Brother, we will get through this soon enough and we will be looking back shaking our heads. Meantime, I wouldn't check your email either...just got a dozen emails from China labs asking for work...the fkn nerve!!!

 

[sndmn2]

At this point I'm going to file for unemployment as I am a sole proprietor in MI and I have no employees. However I'm not sure if the website is set up for it yet. I will see tonight.

 

[rkm rdt]

This is a 2 headed monster.
We can las a few months assuming the economy comes back but it appears it will be a gradual recovery.
If that is the case, then most of us are screwed.

 

[Car 54]

At this point I'm going to file for unemployment as I am a sole proprietor in MI and I have no employees. However I'm not sure if the website is set up for it yet. I will see tonight.

Edit: I read a little more, answering my own question.

 

[zero_zero]

Our local govt. is projecting 25% unemployment by the time this plandemic is over, I'm not sure what kind of stimulus could they come up at with that point, for the economy not to catastrophically implode. Prices will most likely skyrocket, prolly there will be shortages as well. We'll gonna hurt, big time.

 

[rkm rdt]

Our local govt. is projecting 25% unemployment by the time this plandemic is over, I'm not sure what kind of stimulus could they come up at with that point, for the economy not to catastrophically implode. Prices will most likely skyrocket, prolly there will be shortages as well. We'll gonna hurt, big time.

Alberta looks to be in deep caca. No bidet will wash away this economic turd that will,Klingon for a long time.
Canada was entering a recession prior to this pandemic. I can't see the current government pulling us out of this unless oil,prices skyrocket. It's our only chance for a quick rebound.
Maybe lab fees will have to increase.

 

[rkm rdt]

... if we have a lab to go back too.

 

[zero_zero]

... if we have a lab to go back too.

We'll have a lab to go back too, but I'm not sure if we'll have enough work to hire the crew back. I am worried about them