How to deal with past-due invoices

[BusinessMan]

I sell products to high schools on net 30 terms, and so far for several years I have never gotten stiffed. Many schools will only do a PO, so if I require payment up-front I will disqualify myself as a vendor.

I have one school that is now 60 days past due. I have left voicemails and emails for the accounts payable lady in charge of my account at the school district. She has not responded. She did actually pay a later (and smaller) invoice that was only 30 days past due. She didn't pay the past-due 1.5% finance charges I had tacked on. I have had schools pay late sometimes, but this is the longest I've waited so far.

1. Any tips on getting paid by a school district?
2. How do I deal with unpaid finance charges for invoices they eventually pay? I'm tempted to just let it go and be happy with at least getting paid the original invoice amount, but it sort of sets a precedent.

[Freelancier]

Getting paid by any government entity can be a chore.

I'd recommend any 60-day-past-due invoice gets sold. You lose a little in the short run, but it becomes someone else's problem.

[turboguy]

We sell a lot of schools as well but mostly colleges, along with lots of cities. Sometimes they can be a pain. Many times the payment is done promptly. All I can tell you is to call often. If you have one that gives you too much trouble it might be better to stop selling them. You can also refuse to take an order until the finance charges are paid. Finance charges are tough. Many just won't pay them but them being there can speed up payment.

[MarkAselstine]

So the question is-who are you dealing with at the district?

If it's someone in their accounting department-you might try firing off an email to someone higher up. If you want to go nuclear option, email a member of the school board, since they're an oversight group, not employees I can guarantee, you'll get an "oh my god, that's not right" type of response.

[turboguy]

The other thing you might try is contacting the person or department that actually placed the order. In my case as an example the grounds or maintainence dept places the order and of course the ap people pay for it. Sometimes with schools the person who placed the order will be very concerned that it didn't get paid and will see that it does get paid.

[BusinessMan]

Thanks for the suggestions! All great ideas. They eventually did pay.