The following are a few general insights regarding the management of your Accounts Receivable transactions. These are not necessarily in order of priority . . .
- ALWAYS submit an invoice directly to your client; that is, unless theyâve specifically identified that one isnât necessary.
Of course, youâll want to follow that account across the âmaiden voyageâ to ensure that business entity DOES pay without receiving an invoice directly from you. After that confirmation of successful payment, continue to monitor receipt of payments.
- DO keep an abbreviated payment turnaround interval.
A reasonable payment timeframe with a Title/Escrow Company [T/EC], Attorney, etc. is 5 to 7 calendar days.
For Signing Services [SSs], 7 to 21 calendar days.
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NOTE: Some SSs issue checks/Automated Clearing House [ACH] payments on the 1st & the 15th of each month. As such, their payment interval may be a bit longer than noted above.
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===>>> Anything longer than the intervals noted above is considered an EXTENDED interval for payment.
If you decide to accept longer intervals, in essence, as a business owner youâll be extending credit/giving a non-interest-bearing loan. Certainly, NOT the best use of your funds/return on investment [ROI].
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Please research the business entity & their affiliated reputation PRIOR to providing any Professional Services.
===>>> Remember that for the Professional services you provide include associated ACTUAL DIRECT out-of-pocket expenses that become a financial liability youâre incurring for that specific SO; i.e., gasoline, turnpike/ferry fees, paper, toner, binder clips, pens, envelopes, hand sanitizer, wipes, etc.
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Many of us have a PAYMENT POLICY & identify those requirements when accepting Signing Orders [SOs] from a new client. That is normally one of the non-negotiables during the SO Acceptance discussion. Here is an example of a payment policy:
âFee is due and payable for services rendered at the time service is provided - regardless of/not contingent upon borrower(s) signing, the loan funding status, or the purchase/sale/refinance finalization status.â
The PAYMENT POLICY STATEMENT is also included on each invoice for every client.
REMEMBER that your out-of-pocket expenses are promptly due (whether cash payment or credit card) immediately or within 21-25 calendar days (per credit card statement).
Ergo, you owe it to yourself to ensure that your CASH FLOW is available within that timeframe.
Want to learn how to Create your own individualized Schedule of Fees? Review this Notary Cafe thread.
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Always remember to make an important distinction when asking about payment turnaround time during the negotiation interval:
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- âIs that 21 Calendar days? Or, 21 Business days?â
When doing the math, it reveals there is a much longer turnaround time for payment with the Business days counting âmethodâ . . .
- Trust (but verify).
Always vet a client PRIOR to the initial transaction. Ask âWhat is your payment interval?â
Be certain that you confirm the interval is in calendar days or business days as thereâs a LARGE difference between the two . . .
Accept the SO if it meets your criteria and add the caveat that youâll be researching their business regarding payment history & may need to return the SO to them if there are concerns about prompt remuneration of successfully provided Professional Signing Agent [PSA] services..
- Remember to always keep notes about the payment interval agreement.
- If you have a NEW client with one outstanding invoice, hesitate on accepting additional SOs until payment is made.
WHY? Often, business entities that have a âsketchyâ history of paying PSAs, theyâll often schedule MULTIPLE SOs close together. Before you know it, you have a NEW client with 5 or 6 outstanding invoices! Non-payment could result in financial difficulties . . .
- Be Professional.
- Remain calm.
- Donât respond to ad hominem attacks (nor reciprocate).
- Take legal action when all else fails . . .
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This thread covers a frequently posed query & thought you would find this thread quite helpful.