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View Full Version : commercial accounts / companys going bankrupt warning!!!!!


tlg
02-14-2009, 04:14 PM
I had a conversation yesterday with a landscape company owner. It's seems the economy has left some companies going bankrupt and sticking it to the landscape contractors. This company was into a large manufacturing company to the tune of 14k. The just closed their doors and stuck this guys company for all that money. He also told me of another landscape contractor who got hit for 250k when a company folded last week. This is getting scary as you really can't trust anybody right now. If your dealing with big commercial accounts watch your back and make sure your on top of your accounts.

LIBERTYLANDSCAPING
02-14-2009, 04:36 PM
This has always made me nervous, as the ones you are most likely to get screwed by are the large companies who have net 30-net 60 terms. By the time you figure out that they are not paying, you may be into them for a couple rounds:cry: What to do about it???

greendoctor
02-14-2009, 04:42 PM
I do not care who it is, but my rules on payment are anything not paid within 30 days is late. When payment is late, I assess late fees, it goes to collection on the 60th day and if I do business with a late payer again, payment in full is due prior to my performing the work. I am not a mortgage company or bank.

rcreech
02-14-2009, 05:16 PM
Very good advice!

Good thing is...we don't have a lot of "overhead" my biggest property is 22 acres and if they didn't pay I would only be out a grand (material only). That is a lot of money...but nothing like a landscaper would be out!

EagleLandscape
02-14-2009, 06:30 PM
prepaid service.

greendoctor
02-14-2009, 06:52 PM
prepaid service.

Good policy. Again, you are not their banker. I have no wish to get caught in their game of borrowing more than what can be paid back. Businesses should have their feet held to the fire as much as an individual. They should know better.

tlg
02-15-2009, 07:11 PM
The landscape companies involved here were not fertilizing lawns. They were providing mowing and snow removal services. A lot of the outstanding balances I understand were for snow removal and salting. We have had a lot of snow so these guys have been billing a whole bunch this winter. I questioned too why such large balances were not kept in line. Snow removal billing tends to pile up ( no pun intended ) if the snow keeps coming down. It's amazing how fast things add up on large accounts. The bottom line is we all really need to watch things as close as we can. Granted the fertilizing end of our businesses usually won't run up enormous tabs like these landscape companies did. However it's a good policy especially in these tough times to keep an eye on everything. Losing even 1k right now on some defunct company would really be a pita.

humble1
02-15-2009, 09:10 PM
The landscape companies involved here were not fertilizing lawns. They were providing mowing and snow removal services. A lot of the outstanding balances I understand were for snow removal and salting. We have had a lot of snow so these guys have been billing a whole bunch this winter. I questioned too why such large balances were not kept in line. Snow removal billing tends to pile up ( no pun intended ) if the snow keeps coming down. It's amazing how fast things add up on large accounts. The bottom line is we all really need to watch things as close as we can. Granted the fertilizing end of our businesses usually won't run up enormous tabs like these landscape companies did. However it's a good policy especially in these tough times to keep an eye on everything. Losing even 1k right now on some defunct company would really be a pita.


I have some friends that are doing commercial lots that are 2 times over budget, and they are having a hell of a time getting paid.

LIBERTYLANDSCAPING
02-15-2009, 09:38 PM
I have some friends that are doing commercial lots that are 2 times over budget, and they are having a hell of a time getting paid.

I hear that! This has been a snowy winter out here & most contracts for national chain stores & banks, etc. state to push snow when it accumulates an inch & salt when there is a dusting...Which means we have done tons of billing. Say you start pushing Dec. 1st., you bill Jan. 1st due net 30-you just now start to realize that something is wrong & you are into them for 2.5 months. Most contracts like this state 30 days notice to drop them, or risk being sued. What if there is a slip & fall on the property that you quit doing & you are still under contract:cry: Hate to put all my eggs into one basket right about now.......