Delinquent Accounts: How it Works
We’ve had a very busy summer, working on all sorts of features that are helping our clients and partners run a more profitable & predictable business. All of these new features will be available through ExchangeDefender as well as Wrkoo shortly.
This post is unfortunately not about one of those features. During the implementation of full automation for service subscriptions, terminations, and billing we found several partners that were committing outright financial fraud against us. This has caused us to revise our billing process and policies so that we can continue to provide a service that is both affordable and profitable for everyone.
In 2019, we’ve spent an average of ~62 hours per month dealing with delinquent accounts.
Delinquent accounts are those that do not pay their bills by the 5th of the month. By our policy every account that does not pay their invoice in full on the 1st has a ticket generated and assigned to the Billing Contact for the company. We then follow up with an email and a phone call to the billing contact. We understand that business can be difficult and unpredictable (credit cards get compromised, it’s hard to track expirations with all the vendors, some clients pay slow, etc) and we go out of our way to make sure the business is aware of an unpaid invoice. Invoices that are not paid by the 5th (after we’ve contacted the billing contact every possible way) are charged a late fee. If the invoice is still not paid we continue to make the best effort, and if it’s still not paid after the 15th the service is disconnected.
Delinquent Account Handling
If you were seriously late paying an invoice more than twice in 2020, your account will be flagged as delinquent. If any of the future invoices are unpaid by the 5th, you will be asked to provide a secondary funding source:
If neither funding source can be charged by EOD on the 3rd (after tickets have been opened and emails sent), the services will be suspended.We are hoping that this automation helps our partners and clients avoid service interruptions and late fees.