montmach@aol.com (MONTMACH) wrote in message news:<20040216094923.11541.00002111@mb-m12.aol.com>...
I have a customer that is delinquent on his payments for my machining services.
I have heard that I am entitled to charge four percent interest on this debt
but I don't know the particulars and can't seem to find the salient part of the
California Civil Code that legislates the issue. Is anyone here familiar with
commercial contract law in California? Thanks in advance.
~~~~~~~~~~~~~~~~~~~~~
Dave Griffith
TRA 7956
The R.A.T.T.-works
Monterey Machine Products
1504-A Industrial Park Street
Covina, CA 91722 U.S.A.
http://www.rattworks.com
California usury law kicks in at 10 percent (that's per year, not per
month). But that's the lesser of your problems: what do your contracts
(sales orders, whatever) say about interest on unpaid invoices? If
they are silent as to interest, there is nothing that allows you to
charge interest.
The usual leverage that a small business has over slow-pay or no-pay
customers is to withhold services until the customer's account is
current. If they really need your work, they will pay up.
--
Not a lawyer,
Chris Green
