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Here are a few thoughts on administrative fees. I'm John Harrington.
We deal with a lot of clients
who may not be paying in thirty days or even sixty days or
gosh, even ninety days.
The problem is that all of our vendors require thirty day turnaround.
As such,
we've implemented and have been using successfully for about twenty years an
administrative fee
where we pre-bill the client
a 10% surcharge
and allow them to take it as a discount
if they pay on time. This is also a great opportunity, when a client says, "Hey,I'm a
non-profit, what can you do?" You can say, "Well we'll give you a 10% discount if
you pay on time."
We always pre-bill these administrative fees, however,
because unlike the electric company, we can generally not be adding on an
administrative fee after the fact
to the next bill, because that really doesn't work that way in the
client relationship that we have. So administrative fees are a great solution
for helping you keep your bills paid on time.