Sometimes I get calls from folks that make me a bit curious and I do some basic searches on them and as part of that search I discovered that the business has been administratively dissolved. It was created and 1-12 years later it is dissolved. Now often it is because they did not pay unto Ceasar what Ceasar was due in the form of yearly corporate registration fees but that is irrelevant for this discussion it is dissolved and a defunct business.?ÿ
I was asked about a doing a fairly significant survey and I have just sent in a proposal and I always demand 50% upfront with the balance due at completion. I do not turn over my product until I am paid.
Which leads me to this....if he accepts my terms and pays by check, would you put a hold on field work till the check clears and how long do you wait?
Sometimes checks make me wary.
Years ago I had a business name with which I had changed names and corporate structure making it defunct.?ÿ But I kept the old checking account for about a year.?ÿ The checks were good, but the corp showed as closed according to the State's records.?ÿ Never caused me any heartache.
I don't know about where you're at, but around here it's easy enough to call the bank the check is written on and inquire if the account is open and if the check will clear.
For the interesting ones. I typically wait 3-4 days, citing a back log of work I like to see it post to the account and I ask my bank manager to call me if anything changes.?ÿ
?ÿI ?ÿonce proposed a 100% retainer for a project I did not have time to do, but they needed. After talking to the client I reduced it to 50%. Never again. ?ÿAlways trust your gut. I??m still waiting for that money.?ÿ
Neil
My standard reply to all my clients: I am 6 weeks out, I will need a signed contract and 50% deposit to put you on my schedule...
Plenty of time for the check to clear.
Can you cash the check at the client's bank? Or make them do a wire transfer or cashier's check.
Skip the risk - cash the check at their bank, deposit cash in your bank, and then do the work.
Forget the wire transfer - if something goes awry they can reverse the transfer.
Is writing a bad check a felony everywhere or just here?
Felony here but I have no clue if people actually serve time. I'm sure they eventually do but my cynical nature tells me they get away with ripping people off far more often than they serve jail time.
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Once there was a time that on some projects, we had to race to the bank before the client got there to cancel the check.
Today I can use my smart phone and deposit the check as soon as I get my hands on it.
Also, the client must produce a very good reason they canceled payment.
The courts will uphold theft of services by a client and that will result in a felony conviction.
In Texas, 3 felony convictions is an automatic Go To Jail for 30yrs in state prison with opportunity for parole after 10yrs and it is strictly followed in most places unless you got pictures implicating influential people.
Since when is bouncing a check a felony??ÿ Those $25 fees were how banks stayed in business for like... 50 years.
I had a terrible client hand me a check and then said, "Hold onto it for a few days."
Of course I went straight to his bank with it.
Take the check to the bank it is drawn on. ?ÿAsk if there is enough in the account to cash it. ?ÿIf not, you have your answer. ?ÿIf so, you walk out with a nice wad of cash to deposit at your own bank. ?ÿHave done this many times when there is some question as to the client's ethics.
The only time this is a problem is when the bank is in Timbuktu.
Several national banks around here will not cash a check drawn on their bank for you if you do not have any account with them. Some banks also balk at cashing a check made out to a business. I've gotten around the latter by having the bank convert the clients check into a cashiers check made out to my company.
The felony is "theft of services by the amount being over $1,000".
You have to file charges with the DA and have them prosecuted.
No bank can refuse to cash a check written from their own bank and the check is made out to the person that is at the window asking for their money.
A company's name on the check can cause some problems and allow the bank to skate across thin ice on the issue.
Best way is to have a designated person's name of the company to appear on the "Payable to" line of check for those payments.
Depending on the type of work being undertaken you can build in some extra "cover" in your quotation and on the drawing.
Where appropriate we include a Copyright Clause to the effect that the client has free use of the data "for the purposes for which the survey was undertaken, once the invoice has been paid. Use of the data prior to settlement will incur a quarterly charge of 10%".
That way, if he fails to pay as soon as the developer submits anything for the scheme which uses our plan we contact them and point out that our copyright conditions have been breached and request the quarterly charge. They almost invariably settle the 10% charge and then they kick the original client hard - he then pays rather than put his whole arrangement at risk.
Few developers want to run the risk of a Court action, just as they are trying to get approval for a scheme.
"No bank can refuse to cash a check written from their own bank and the check is made out to the person that is at the window asking for their money."
Nice thought but not reality
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I have never had a bank refuse to cash a check drawn on them when there is enough money in the account to do so. ?ÿOf course, I must show proof of identity.
I glad I don't have to fool with the public. All our invoices are on purchase orders from the client with our agreed upon prices reflected thereon. As a result my AR's have never been over 1% for the last 30 years. The accounting departments with some large production builders leave much to be desired. Some have paid us twice for a service. As a result of accounting inefficiency on their behalf we have over $150K sitting in an "overpaid" account. We have addressed this with them on numerous occasions to no avail. Apparently it would cost them more and time and money to correct it so they blow it off. That's Ok with me.
If I did deal with the public, the first time a check didn't clear I would stop work, with liens and a lawsuit following closely behind. I refuse to tolerate deadbeats even if I lose money pursuing it. Never release a project until you have been paid in full. If you do you'll get screwed sooner or later.?????ÿ
>over $150K sitting in an "overpaid" account. We have addressed this with them on numerous occasions to no avail. Apparently it would cost them more and time and money to correct it so they blow it off
Either they have vastly overpaid accountants, or their incompetence is beyond the overpayment. That ought to pay someone at their company for months of full-time effort to recover it.
