Accounts Receivable Policy
Simple Startup
Simple Startup Accounts Receivable Policy
Last Modified: April 2024
Scope
This Accounts Receivable Policy & Procedure establishes procedures to ensure consistency in how Simple Startup handles the treatment of receivables. It also includes guidelines on when receivables are turned over to legal and/or a collection agency.
Definitions
“Accounting” refers to Simple Startup’s internal accounting teams.
“Accounts Receivable” means amounts due to Simple Startup for services contracted, but for which payment has not been made.
“Accounts Receivable Systems” means the software or system utilized by Simple Startup that allows a Customer to store an Authorized Payment Method, for Simple Startup to invoice Customers, and for Accounting to collect Outstanding Balances.
“Aging Schedule” means a report classifying accounts receivable for their due date used to determine which accounts are current and which ones are past due.
“Authorized Payment Method” means an ACH withdrawal or a wire transfer. Simple Startup maintains the right to request a specific payment method depending on specific circumstances.
“Charge Adjustment” means a correction to an erroneous accounts receivable balance.
“Collections” or “Collections Agency” means a third-party working with Simple Startup to secure the Outstanding Balance.
“Collections Fees” means the third-party fees that will be added to the Outstanding Balance if a Customer has a Delinquent Balance and their account is referred to Collections.
“Customer” means a user or company of the goods and/or services provided by Simple Startup.
“Delinquent Receivables” or “Delinquent Balance” means receivables that remain unpaid beyond thirty (30) days past their due date, or forty-five (45) days from invoice date. .
“Failed Payment” means a customer payment that has failed either through insufficient funds, declined payments, or contested payments.
“Failed Payment Fee” means a $50 fee that is added to your account when a payment attempt fails.
“Interest” means interest accrued at a monthly rate of 1.5% (18% APR). Interest compounds monthly on invoices fourteen (14) days past due, which equals 19.56% APR.
“Outstanding Balance” means the aggregate amount owed by a customer to Simple Startup.
“Payment Plan” means a plan jointly agreed to by Simple Startup and the Customer, wherein the terms of settling Outstanding Balances are set forth, including actions to be taken if the Customer does not adhere to the agreed upon terms.
“Past Due Balance” means the aggregate amount owed by a customer to Simple Startup that is past due.
“Past Due Receivables” means receivables that remain unpaid beyond fourteen (14) days past their due date.
Invoicing Procedures
Simple Startup invoices Customers in the first five days of a month, generally, for services to be performed that month.
Accounting attempts to collect payment on invoices using the Authorized Payment Method as stored by the Customer in Simple Startup’s Accounts Receivable Systems.
Failed Payments are subject to the Failed Payment Fee.
Past Due Balances
Outstanding Balances become Past Due Balances when they have aged 14 days. For example, if a Customer is invoiced on March 1 and payment has still not been received on March 15, that amount becomes a Past Due Receivable.
Interest
Interest begins accruing on all Past Due Balances.
Late Fees
Simple Startup may charge late fees when Outstanding Balances become Past Due Balances according to the Aging Summary.
Collections
In accordance with the Federal Fair Debt Collection Practices Act, Simple Startup reserves all rights to utilize a third party collection agency and/or take legal action to obtain payment for monies owed to us.
Collection fees will be added to outstanding debts when they are transferred to a third party for collection.
We always attempt to amicably resolve any Past Due Balances and communicate with Customers several times prior to taking this step. In essence, Simple Startup will make reasonable efforts to collect on a Past Due Balance before it involves Collections.
When there is a Delinquent Balance it is the policy of Simple Startup to collect on the entire Outstanding Balance.
A Customer may initiate or request a Payment Plan if they have a Past Due Balance. Any Payment Plan must be jointly agreed upon in writing.
Communications
Simple Startup will attempt at least four (4) communications when an account becomes Past Due before turning an account over to Collections.
Reservation of Legal Rights
Simple Startup reserves all legal rights to payments agreed to by Customers entering into the Terms of Service and may use all available legal rights to secure such payments.
Contact Us
We welcome feedback or comments on our Accounts Receivable Policy.
Email: operations@simplestartup.com
