Hey everyone out there in blog land! I’ve been dealing with a different side of business recently that was not discussed much in any of my college classes. Late payments. We have all done it, I’m sure. I’m sure we have let things go before because we just didn’t have the money for it. I have sure been on that side of things.
But there are two sides of late payments. There is the side that we have all been on where we are just broke and can’t pay something, forget to pay, whatever the case may be. Then there is the side of what happens to the person/business that you owe that money to. That’s where things have been very enlightening for me recently.
Can’t You Just Work With Me?
Well, no. We really can’t. We are a small business that depends on the income from our properties to operate everyday. Just like other small businesses rely on their customers to purchase products, we do as well. As an example, when a boutique type place has a loss of inventory (theft, damage, etc.) they feel those losses. We do as well when payments to us are not made on time. When a property is damaged from a tenant, that is a cost that we have to “eat” if it exceeds their deposit. When someone does not pay their mortgage/rent, we feel that when our bills come due.
We Are Not Heartless Though!
We understand that things happen sometimes. When those things happen, we will try our best to help. We can only do so much however. It does make a difference if you have had a couple of serious things to take care of as opposed to just not making your payments/rent at all and only asking for help when it is to the point of foreclosure and eviction. Hypothetically.
See, when we start having to bear these costs without any income, we have to start using our reserves to do that. Our reserve funds also allow our charitable donations, hiring of contractors, buying new project houses… Something else… what was it…?.. Oh yeah, my check also depends on people paying.