View Full Version : Billing Periods
02-25-2002, 02:49 PM
Can someone please give me an example of their billing periods, and how they deal with late paying customers. Thanks
02-25-2002, 02:55 PM
we bill twice a month. monthly sent out on the 15th,and per cut sent out on the 1st.
late payment 2% penalty every month.
02-25-2002, 02:59 PM
We bill once a month. Half of our customers get billed on the 15th and the other half on the 30th. We have found that this helps the cash flow.
02-25-2002, 03:15 PM
in past have done where they pay me after work is done,this year i plan to change, what would u reccamend, im going to have atleat 5 accounts, some of which are just landscaping, others full mowing and landscaping.also this is what i have as now, in the process of handing out flyers.
2 man crew
02-25-2002, 05:12 PM
We bill on the 1st of every month. The bill is due by the 15th of the same month. If the bill has not been received by the 1st of the next month the late customer will get a note that says:
We have not received your payment.
To avoid a $20 late fee please pay the
Full amount by the due date.
If the customer has not made any payment by the next billing cycle they would get a note that says:
$20.00 Late Fee.
Please pay the total amount due.
At this point the customer would also receive a courtesy call. We would still resume service unless the customer says they are not going to pay.
If they still have not made a payment by the next billing cycle. They would receive a note on the bill that says:
Your account will be turned over to collections.
The service would then stop.
At this point I am no longer nice to this customer.
02-25-2002, 05:42 PM
Lawn Maintenance---Bill monthly on the first of every month. (printed day before). They are due at the 15th of the month. There is a 5 day grace period with a 1.5% service charge of total added to next bill for those late payers.
02-27-2002, 03:46 PM
Bill on 1st of each month for the previous month
Due by 15th
Late after 15th, late charge of $10.00 may apply (for chronic late payers mostly)
1.5% finance charge on balances carried into next bill cycle and for sure the $10 late charge
30 days late - they get charged as listed above. Plus we use preprinted envelope stuffers saying they are 30 days past due. We would appreciate prompt payment.
Still waiting now at 45 days, a phone call
At 60 days, letter warning of suspended service if payment is not received in 10 days. PLus the current statement will have another stuffer notice in it.
70 days, suspend service until account is paid in full. If this happens, the customer is on short leash. If they ever fall past 30 days, we suspend service at 45 days. If we have suspended service twice, the third time is cancellation.
If they still don't pay - we have the lawyer send a letter. Haven't had to do this in three years... thankfully. All accounts are collectable, won't let money fall into the 'unpaid' category for too long.
% down or multiple draws, net due upon completion (give them up to 5 days to pay)
One time jobs for non regular customers:
Bill upon completion, net 10 day from date of invoice
If we have not received payment after 15 days, we call and follow up with a letter - summarizing our conversation and expectation to receive payment within xx days discussed on phone.
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