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Question:

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Ken,

    We have a customer who has multiple accounts (over 10) and has been paying us annually in advance for alarm monitoring service but would now like to change to paying monthly and not in advance. First, does your standard monitoring agreement indicate payment is to be made in advance? If yes, can it be modified.

    I really do not want to modify it or invoice for monitoring a month or more (quarterly) after but are there any legalese which I could use to try to legally dispute this matter and keep invoicing in advance. 

    Similar to Bob Worthy's example this is not like we may or may not cut their grass and then want to get paid.

Mark S.

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Answer:

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    There is no legal reason to be paid in advance or monthly as opposed to some other schedule.  It's a matter of cash flow and allowing subscribers to get too far behind - far enough to make it worth it to switch rather than pay.

    The Standard Alarm Contracts that provide for recurring revenue [and all of them do except for the Sales Contract] provide for payment in advance.  The periodic payment is blank so that you can fill in monthly, quarter annually, etc.  However, the charge that gets filled in is the monthly charge, even if paid less frequently. 

    All the Standard Form Contracts can be modified to suit your particular, or peculiar needs.