Rainmaker NetworksLate Fee

        Updated 11dec2022


Every invoice has a clearly stated due date. That due date is the date by which we expect to have payment in hand. It does not mean the date by which you as the approving manager should pass it to your internal AP department. If your AP department takes five days to get a check to us, then you as the approving manager should plan accordingly.

Historically, most customers have diligently paid invoices by the due date. We greatly appreciate this effort that most of our customers have shown and continue to show.

We handle late invoices with two approaches:

1) Grace Policy: Very simple, and it's free:  COMMUNICATE . If you can't pay your invoice on time, let us know BEFORE the due date. We generally will work with you. This is stated on every invoice after 11dec2022. More detail on this below.

2) Late Fee & Finance Policy: If you choose to NOT communicate before the DUE DATE, then by default you are choosing and agreeing to LATE FEES.

Why charge late fees?
Because late payments costs us actual cash money in two ways:
a) Money has a time value to it. A dollar today is worth more than a dollar in two months. If we knew you were going to delay payment by two months, intentional or not, we would have had to charge more accordingly to account for that.
b) It takes a great deal of time to chase down the people who have neither paid their invoices nor communicated accordingly.

The Grace Policy and the Late Fee Policy are described in detail below.

Businesses occasionally have intermittent cash flow issues, which we understand completely. We often extend an amount of grace during those times, on a case by case basis, to customers who otherwise have demonstrated prompt payment. We have generally found this to be a sound policy, as the majority of customers are good upstanding folk who quickly justify their accounts as soon as their own business cash flow returns to normal.

If your business enters this situation,all we ask is that you CONTACT US PROMPTLY so that we can work out an understanding. While we are willing to work with normally promptly-paying customers during difficult periods, YOU MUST KEEP US VERY CURRENT on the issues BEFORE THE LATE FEES COMPILE.  To describe it differently, we are willing to exhibit grace when we can, but don't take grace from us without our knowledge.

There are no specific governing rules for how we apply the grace policy. It is purely discretion-driven on a case-by-case basis, mostly based on what kind of trust relationship we have built between us. By necessity, we must reserve sole right of that discretion. We apply it fairly and evenly based on our relationship with you, not our relationship with people who are not you. This idea of grace harkens back to the days of yore, when business relationships were handshake-driven. It is a better way for well-intended people to do business, no matter what the lawyers say.

Having described that, here are two notables:

Habitually failing to account for the fact that your AP department needs time to process your approved invoice does not earn grace.

Habitually being disorganized in task management does not earn grace either.

The alternative to the Grace Policy is choosing to pay late fees per this formula:

On the day after the due date, Late Fees will be applied to your account.
The amount will be $10 or 1% of the original late invoice, whichever is greater.
That same amount will be added again repeatedly in 1-week intervals until the invoice is satisfied.

All of the above notwithstanding, we understand that occasionally checks get lost in the mail or due dates are recorded wrong in your calendar of bills to pay. We of course consider these mechanical "misses", and we will zero out late fees in these circumstances. However, statistically, nobody's check gets lost in the mail 75% of the time. Nobody enters the date wrong in Quickbooks 12 times in a row.

It's all about trust. Please work with us to keep it healthy so that we are in position to continue to provide you with great service.

Ed Goodwin