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Shipping News UPS Looking to Enforce Late Payment Penalty on Customers
January 20, 2003
United Parcel Service Inc. has begun charging a five percent penalty on customers who pay their bills late. For customers who are billed either monthly or weekly, a late-payment fee is charged if the shipper's payment is not received by UPS within 14 days of the invoice due date. This late payment charge is targeted at all UPS customers, but it will most likely be the small business customer who will end up having to pay the penalty if their payments are late. Larger customers will probably be able to negotiate this penalty down or eliminate it completely. Details of the late payment penalty can be found in the Tariff Document, located on UPS' website at www.ups.com, in the section "Options For Payment of Transportation Charges" on pages 15-17. Even though it is not uncommon for companies to add finance charges onto past due invoices, this seems to be a first for UPS. This penalty is currently not assessed by FedEx. |
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