The 2 a.m. invoice that flipped our late payment policy
Used to wait 45 days before sending a reminder, then a regular in Hamtramck dodged us for 6 months and claimed bankruptcy. Switched to a 10 day nudge with a $25 late fee and collections drop went down 30% in one quarter. Has anyone else seen bigger returns from just speeding up the first warning?
30% sounds good until you look at what you gave up. Ten days is barely enough time for a check to clear in the mail, so you're probably nicking decent customers who always pay, just slow. The Hamtramck guy was a deadbeat either way, a 10 day warning wouldn't have saved that one. What happened to your repeat business after the switch, any drop there?