Policies

 

Goodwin PC Services

 

Grace Policy    /    Late fee and Finance Charge Policy

 

Updated March 1, 2010

 

 

We handle late invoices with two approaches:

    Grace Policy: Very simple:  COMMUNICATE . If you can't pay your invoice on time, let us know BEFORE the due date. We generally will work with you. More detail on this below.

    Late Fee & Finance Policy: If you choose to NOT communicate before the DUE DATE, then by default you are choosing and agreeing to LATE FEES and FINANCE CHARGES.

Both are described in detail below.

 

STATEMENTS: Remember that your account statement is emailed or mailed to you at the first of each month. In addition to that, a mini-statement of your account is included in the prose of every emailed invoice. We are happy to provide a statement to you at any time, of course.

 

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GRACE POLICY

Historically, most customers of Goodwin PC Services have diligently paid invoices by the due date. We greatly appreciate this effort that most of our customers have shown and continue to show.


On some occasions over the years, some of our business customers have had intermittent cash flow issues, which we understand completely. We have been in a position to afford an amount of grace during those times, on a case by case basis, to customers who otherwise have demonstrated prompt payment. I have mostly found this to be a sound policy, as the majority of our customers are upstanding folk who quickly justify their accounts as soon as their own businesses return to strength. If your business enters this situation,PLEASE CONTACT ME so that we can work out an understanding. While I am willing to work with normally promptly-paying customers during difficult periods, YOU MUST KEEP ME VERY CURRENT on the issues BEFORE THE LATE FEES COMPILE.  To describe it differently, I am willing to exhibit grace when I can, but don't take grace from me without my knowledge.


There are no specific governing rules for how we apply the grace policy. It is purely discretion-driven on a case-by-case basis, mostly based on what kind of trust relationship we have built between us. By necessity, I must reserve sole right of that discretion. I apply it fairly and evenly based on my relationship with you, not my relationship with people who are not you. This idea of grace harkens back to the days of yore, when business relationships were handshake-driven. It is a better way for well-intended people to do business, no matter what the lawyers say.

 

 

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LATE FEE  /  FINANCE CHARGE POLICY

The alternative is a rigid late-fee & finance charge calculation. Note that this is NOT the way that I want to do business. But some people simply won't contact us about grace, and some people of course simply never intend to pay at all.

 

Near the 1st of each month, a statement will be either mailed or emailed to your designated Accounts Payable person. The statement will be the same basic format that you have seen before, with the addition of a Late fee / Finance charge line added in automatically as the last line in the list of transactions. While most accounts will not even have such a line since most of our customers keep their accounts current, some will see this entry and will want to know how the calculations are made:

 

For invoices that are:                 Finance charge:                                  Late Fee:

Not late                                          No finance charge                               No late fee

From 1 to 15 days late                No finance charge                               If no minimum payment received during the previous month, a $10 late fee is incurred.

From 16 to 30 days late             Finance charge 0.5%                         If no minimum payment received during the previous month, a $10 late fee is incurred in addition to the finance charge.

From 31 to 60 days late             Finance charge 1%                             If no minimum payment received during the previous month, a $20 late fee is incurred in addition to the finance charge.

From 61 to 90 days late             Finance charge 1.5%                         If no minimum payment received during the previous month, a $30 late fee is incurred in addition to the finance charge.

Over 90 days late                         Finance charge 2%                             If no minimum payment received during the previous month, a $40 late fee is incurred in addition to the finance charge.

 

The minimum payment is indicated on the modified statement.

 

The minimum payment is not made for two consecutive months, all
services will be suspended with notice to the customer. If there is
no payment response from the customer within 10 business days, the
account will be submitted for collection

 

All of the above notwithstanding, we understand that occasionally checks get lost in the mail or due dates are recorded wrong in your calendar of bills to pay. If you have been with us for years and one of these mechanical "misses" occurs, we will adjust late fees & finance charges back out. However, nobody's check gets lost in the mail 75% of the time. Nobody enters the date wrong in Quickbooks 12 times in a row. It's all about trust.


Ed Goodwin