Slow payments/nonpayment

[raulus]

Just another brick in the wall, I guess...

Seems like the economic situation must be starting to affect our world a bit more these days. I'm sure that I'm not the only one who received this email from Heritage today:

As a result of a noticeable uptick in delayed payments, and higher interest rates in financial markets, interest charges will be added to invoices not paid by the due date, consistent with Heritage's Terms and Conditions of sale, as follows:

A 1% monthly interest charge on the declining balance will be applied to all invoices that are not paid within 14 days of the invoice date. After 45 days, the interest rate will increase to 1.5% monthly, on the declining balance.

We will send a reminder by email, before the due date.

Flexible Payment Options: We understand that circumstances can vary, and we are committed to working with you to find a suitable payment solution if needed. Please do not hesitate to contact us to discuss any concerns or to set up a payment plan.

[BioCRN]

Almost all the time I wish I could get my invoice faster, much less waiting 1-2 weeks to actually pay.

If anyone gets into a situation like that without a sudden unforeseen incident occurring or a plan that involves the wait they should probably do some self-checking on whether they might have a spending, bid-gambling, or hording addiction.

[raulus]

Originally Posted by BioCRN

Almost all the time I wish I could get my invoice faster, much less waiting 1-2 weeks to actually pay.

If anyone gets into a situation like that without a sudden unforeseen incident occurring or a plan that involves the wait they should probably do some self-checking on whether they might have a spending, bid-gambling, or hording addiction.

I get you, for sure. And generally agree.

Of course, there was one time when I waited until the last day to pay an invoice. I won a pretty thick stack of rare and valuable Mays pieces at the auction, and was on the cusp of getting a big bonus at work. So I took my sweet time to pay, because I expected to have the cash by the deadline.

Naturally the bonus dragged, and ultimately didn't come in by the payment deadline, so I had to float the payment on the HELOC, which the wife TOTALLY loved. Luckily, the bonus came through shortly thereafter and it only cost me a couple hundred in interest. But the principle didn't sit well with her.

[kmac32]

My theory in general is if you don’t have the money to pay for something immediately, then you probably shouldn’t be buying it. Can’t blame an auction house for doing this. Business 101.

[D. Bergin]

Sounds reasonable. Surprised they weren’t already doing that. Still cheaper then most credit cards nowadays.

[Casey2296]

Originally Posted by D. Bergin

Sounds reasonable. Surprised they weren’t already doing that. Still cheaper then most credit cards nowadays.

Its always been the rule at Heritage as stated in their terms, the email was just a reminder since slow/non pay is increasing. I think every bidder got one as a general FYI.

[Rhotchkiss]

Originally Posted by D. Bergin

Sounds reasonable. Surprised they weren’t already doing that. Still cheaper then most credit cards nowadays.

+1. All businesses give a window to pay and then charge late fees; 1% per month is a pretty cheap late fee.

If you win something big and have to move money around etc, just call the AH. I am sure they will work with you and waive the late fee if you communicate and follow through with whatever the parties agree to

[Fred]

Originally Posted by kmac32

My theory in general is if you don’t have the money to pay for something immediately, then you probably shouldn’t be buying it. Can’t blame an auction house for doing this. Business 101.

Blows my mind to think that people would bid otherwise.

Not just Business 101, but Life 101. Don't spend whatcha aint got.

[Snowman]

Originally Posted by Fred

Blows my mind to think that people would bid otherwise.

Not just Business 101, but Life 101. Don't spend whatcha aint got.

There's so many auction houses these days, I can't keep up with them all. I've forgotten I won something more than once.

Also, not everyone keeps large sums of cash just sitting around in their checking accounts. For smaller purchases, sure, you should have the money available. But for high-end stuff, people often have to move money around in order to pay for it.