Nonpayment and Late Fee Policy for IDM Signs & Graphics
Invoicing Structure
1. Deposit and Balance Payment:
– For any service or product provided by IDM Signs & Graphics, a 65% deposit is required to initiate the project.
– The remaining 35% balance is due upon completion of the fabrication to either initiate the pickup, ship the item, or schedule our team for installation, depending on the service obtained.
– IDM Signs & Graphics reserves the right to refuse shipping the item or scheduling the installation if the remaining 35% balance is not paid. This ensures smooth operations and avoids post-installation payment disputes, which have been significant issues in the past.
2. Exceptions to Standard Policy:
– Certain jobs pertaining to Net15, Net 30, or Net 60 payment terms may not be subject to this policy. To qualify for these exceptions, a written letter on company letterhead from our CEO must be obtained, explicitly stating that this policy does not apply. Without this written exception, the standard policy remains in effect.
– For long-standing clients with a history of good business relations, the deposit requirement may be waived. However, the remaining balance and nonpayment policy still apply.
Late Payment Fees
1. Due Date and Grace Period:
– Payment for any product or service provided by IDM Signs & Graphics is due within 30 days of the invoice date.
– A grace period of 7 days from the due date is provided to account for any unforeseen delays in payment processing.
2. Late Fee Calculation:
– If payment is not received by the end of the grace period, a late fee of 10% of the total balance owed will be added to the invoice.
– This 10% late fee will be applied each week until the balance is paid in full. For example, if an invoice of $1,000 is 7 days late, a $100 late fee will be added, and for each subsequent week of nonpayment, an additional $100 will be added.
Nonpayment Consequences
1. 45-Day Nonpayment Penalty:
– If a payment remains outstanding for 45 days without any acknowledgment or effort to make payment, an additional fee of $1,500 will be automatically applied to the total amount due.
– This $1,500 fee is in addition to the accumulated weekly late payment fees.
2. Suspension of Services:
– Clients with overdue balances beyond 45 days may experience a suspension of all services from IDM Signs & Graphics until the outstanding balance, including all late fees, is settled.
– This suspension includes any ongoing projects, maintenance, or future services until full payment is received.
3. Litigation and Financial Repercussions:
– If the customer refuses to pay the remaining balance or any accrued fees, IDM Signs & Graphics will pursue litigation against the client.
– A 1099-C form may be filed against the client’s personal name or business.
– A lien may be filed against the client’s property.
Legal Action
1. Initiation of Legal Proceedings:
– Should the balance remain unpaid after 45 days, IDM Signs & Graphics reserves the right to initiate legal proceedings to recover the full amount owed.
– This legal action will encompass the original balance, accumulated late fees, and the additional $1,500 nonpayment fee.
2. Client Responsibility for Legal Costs:
– In the event of legal action, the client will be responsible not only for the outstanding balance, including all fees, but also for any legal expenses incurred by IDM Signs & Graphics, including attorney fees.
– These legal costs will be pursued as part of the total amount owed in the legal proceedings.
Communication and Payment Plans
1. Proactive Communication:
– IDM Signs & Graphics understands that unforeseen circumstances can affect timely payments. Clients facing financial difficulties are encouraged to communicate with us at the earliest opportunity.
– Open communication allows us to understand the situation and potentially provide accommodations to prevent escalation.
2. Payment Plan Options:
– We are willing to discuss potential payment plans to avoid the escalation of fees and legal proceedings.
– Payment plans may include structured installments, deferred payment dates, or temporary reductions in late fees, depending on the circumstances.
3. Written Agreement:
– Any agreed-upon payment plan will be documented in a written agreement signed by both parties. This agreement will outline the terms, payment schedule, and any temporary adjustments to the policy.
– Failure to adhere to the agreed-upon payment plan will result in the reinstatement of standard late fees and nonpayment penalties.
Policy Acknowledgment
1. Client Agreement:
– By engaging with IDM Signs & Graphics services, clients agree to adhere to this Nonpayment and Late Fee Policy.
– This policy is provided at the commencement of services and is available upon request at any time.
2. Policy Updates:
– IDM Signs & Graphics reserves the right to update this policy as needed. Clients will be notified of any changes in writing at least 30 days prior to the effective date of the new policy.
– Continued use of our services after the effective date of any updates constitutes acceptance of the revised policy.