What to do...Someone I have known for a while has a long overdue bill

[BlackStorm]

Hey,
I have a customer that has a reseller account, he have has had the reseller account for about 6 months, and he has been hosting with me for over a year.

I knew this person online before he got a hosting account from me.

I got the payments for his shared account (Via cheque and pre-paid 3 months) on time, I got the second on time also, before his shared account ran out, he changed to a reseller account, and I took off what was left from his shared account bill onto the reseller account bill.

Right now, I am owed roughly £150 for his account, which is now about 4 months overdue.

If it was anyone else, I would have suspended the account without a doubt, but as I know the person, it makes it a lot harder to decide what to do..

At first he told me about 3 times that a cheque was sent via mail, but I never got it (I do have a LOT of problems with mail here though).
After the third cheque he sent, I then suggested paying via another method, Credit Card, debit card or paypal.

So then after a few weeks of him saying that I would get it the next day, next few days etc. he told me that he didn't have the money.
So I said, OK, no problem. I can wait until you have the money and won't suspend your account.

It is now at least 2 months after I said that, and I still haven't had any payment.

I think it is coming to the time to suspend his account.
Even though I have known him for a while (Only online) I think that he has played on the trust I placed in him, firstly with the problems with me never getting the cheques, then with delaying the payment and keeping his account online.

He said the cheques were sent via registered mail (I suggested this and took the extra cost off his bill so it wouldn't get lost) but he never gave me a code so I could check what was happening with them. When I asked he said he would find out himself.

I don't know if this is a case of him not having the money, not intending to pay, of just trying to delay me as much as possible but I think it has gone on too long at this stage...

Anyone have any suggestions as to what I should do?

 

[alpha]

I think he is starting to take the mickey. Tell him to send the funds via paypal or some other means, as the cheque route is clearly not working.

If he had the funds in his account he wouldn't be mucking you around like this.

Time to put your foot down.

 

[Lesli]

Bad spot to be in!!

The best way to handle this is to realize: you're running a business. You didn't give this to your friend, you are selling him services. I don't think that he thought he was getting freebies - at least, not initially. You need to handle the situation so that everyone wins: you, your friend / client, and anyone who's being hosted by your client.

Contact him and tell him of the concerns: it's costing you money to continue to do this, and you can't continue it. You need to be paid back the balance you're out, and you need to know if he is going to be able to pay in the future. You don't want to ruin the friendship that you two have, and you want to set some clear guidelines so that both of you know exactly what's what - this will take it out of the personal realm. Maybe something like this: from now on, all reseller monthly account bills must be paid on time or the account will be suspended / terminated same as your other clients; and for the outstanding amount he can pay it back over six months.

Bottom line: if this situation continues three, six months from now, how will you feel? Will you feel as if you've been taken advantage of? Will you be okay essentially giving this person free services? Will you be more comfortable if this person moves on to using someone else as a hosting reseller provider, if he's going to continue to have payment troubles?

This is giving you problems now. You've let it go. You need to provide this person with some clear-cut deadlines and consequences, and then you need to follow through with them. This isn't you being mean. This is you running a business and making a living. This is also you avoiding further damage to the friendship in the future, especially if the person continued to use your services for free.

 

[BlackStorm]

Tell him to send the funds via paypal or some other means, as the cheque route is clearly not working.

Yeah that is what I did and he said he could make the payment via paypal using a credit card, but its been months since he said he would make payment via that.

Time to put your foot down.

I think you are right about that....

Lesli, I think giving set deadlines plus consequences if they aren't met would be the best thing to do.
I do this for all my other customers and I don’t have any problems with them at all so maybe it is time to do it for this person too.

I’m starting to think that I won’t be getting any of the bill back at this stage though from the way things are going

 

[Lesli]

I’m starting to think that I won’t be getting any of the bill back at this stage though from the way things are going

Sadly enough, this may be the case. You'll have to decide if you're willing to forgive this debt, or if you're going to say "if it's not paid back after (however long), even if all your other bills are up to date, I'm going to have to terminate your reseller account."

Also, be prepared to cut off the account the first time the other bills go unpaid.

It's also possible that you may have a burnout on your hands. The person started reseller hosting, has a few clients, but is just plain burnt out and doesn't want to do it any more, and he doesn't know how to get out of the situation. If this is the case, ask if he wants to turn his client(s) over to you directly. No reason for any client(s) he may have gotten...to be left out in the lurch.

Best of luck to you, John.

 

[fallcreek]

Cut him off, and take all legal means to recover your losses.

How good a friend could he be if he's trying to take advantage of you that way?

Everyone has tight times, and he may be in one now, but the way to handle that is to tell you he's in a financial bind, and ask for payment arrangements.

John