View Full Version : Net due when?

06-03-2003, 07:19 AM
Was curious on whether most of you are asking for payment within 15 days or 30 days, or due upon receipt. Mine is net 30 but I'm thinking of going to net 15 from send date.

LakeSide Lawn and Landscape
06-03-2003, 04:27 PM
I do net 10 days.They usually send them within 15:confused: I just started doing it that way because most of my suppliers bill me net 10 days hope this helps you.

06-03-2003, 07:20 PM
Residential - net 15

Commercial - net 30

06-03-2003, 10:34 PM
Due upon completion of the work. I hand them an invoice the minute the job is finished.

But I don't do maintenance, only installs.

06-04-2003, 07:30 AM
We just changed last week from Net 30 to Net 15...too many people wait until the very last minute. I need $$$ coming in more during the month too.

We''ll see what happens:rolleyes:

06-04-2003, 07:43 AM
I agree Rod...even if I get my invoices out by the 5th or so (which I never do) I'm waiting on money from work that was done 6 weeks ago until I receive payment even when I change to new 15. Defintely going to 15 days

06-04-2003, 07:51 AM
I even toyed with the idea of changing it to "Upon Receipt"... I knew that would never happen:angry:

06-05-2003, 02:20 AM
Originally posted by rodfather
We just changed last week from Net 30 to Net 15...too many people wait until the very last minute. I need $$$ coming in more during the month too.

We''ll see what happens:rolleyes:

I agree: it's all about cash-flow.
When you changed - did you send them a letter explaining or pointing out the invoice changes?

If so, how did you explain it to the ol' die-hards?

06-05-2003, 06:32 AM
Originally posted by Auroris
I agree: it's all about cash-flow.
When you changed - did you send them a letter explaining or pointing out the invoice changes?

If so, how did you explain it to the ol' die-hards?

Highlited it in bright yellow.

Darryl G
06-08-2003, 12:08 AM
I do Net 10 and usually have most of my payments by 15 days. I have a couple who consistently wait until 25 to 30 days but I don't make an issue of it. It has to be over 30 days to get my attention.

06-08-2003, 12:40 PM
I make the bill do on the 15th of the month, and try to get them out by the 1st (yeah, right!). I do believe, as a former lawyer client once explained, in MI you must give 30 days to pay before adding charges. I have it as part of my terms to pay by the 15th or late charges will be added, but I never do. I usually wait until the 30 days has passed to add late fees. Most people pay on time, and those that don't, don't stay.

06-08-2003, 03:02 PM
I used to have "net 30" on the invoices. A few years ago I changed it to "upon receipt". Didn't notice much of a difference. I still get payments throught the month. I just don't jump for the customers who constantly pay the last 3-4 days of the month.

06-08-2003, 04:40 PM
I was at 30 days up until this past month. I sent a notice out with the last bill explaining that payment was due within 21 days of invoice date. I was tired of getting checks the last day of the month.

06-08-2003, 05:48 PM
Even with mine saying "payment due upon completion of the work", I still have people who hold out. They wait until we are almost finished with the job and then make sure they aren't home when we finally do finish. I have one guy who has owed me $190 for 3 months....and two other people who hounded me to get their work completed as quickly as possible and now its been over a week and they wont even answer my emails...both owe me about $1500 each.

I wont give anyone net 15 or net 30.... they will just sit on it and pay their more "important" bills first.

They think because you are a business owner that you are swimming in cash.

06-13-2003, 06:07 PM
Right now I bill out due on reciept but I am going to change to net 15 because I think that people don't respect the due upon reciept.

06-19-2003, 10:02 AM
Honestly, how long does it really take to recieve-post-pay ?? We are business owners..think about it. As for a residential customer,,,LOL enough said :D

06-20-2003, 08:46 PM
Net 30 for me. I deal with a lot of HOA and have come to learn that when you need multiple signitures on checks, your lucky to get paid within 60 days.

06-21-2003, 06:26 AM
Well as allot of you know, some businesses pay you when they do their monthly payables...so regardless of what we put on the invoice, they will pay you when they do that months payables. I did change to 15 net for Mays invoices....some homeowners paid by the dur date, but most of the commercial stuff missed the due date. They're not deadbeats.....oh well we'll keep trying to speed things up

07-02-2003, 05:43 PM
For residentail customers I invoice "due upon reciept". Commercial customers its the standard net 30.

All my invoicing goes on the last day of the month. Been lucky so far I quess, but some take longer than others ( residential) nothing to get bent out of shape over though.:D

07-05-2003, 01:35 AM
I sent all my residential customers a letter at the beginning of the year stating that we had made several changes to our payment policy.

1) We were changing from net 30 days to net 15 days for lawn maintenance.

2) Payment for any work other than lawn maintenance would be due upon completion of the work.

3) Depending on the job, at least 1/2 of the total price would be due before starting work to cover our cost of materials, then remainder due upon completion of the work.

Residential customers are sent a statement on the 1st of each month for previous months lawn maintenance and on the statement in capital letters is states payment is required within 15 days, after 15 days finance charges may be assessed.

Most of my commercial accounts are sent an invoice the week we do the work, and we receive a check the following week.

For any landscaping work that we don't receive payment upon completion, we send an invoice and it states due on receipt. We generally receive payment within 10 days most of the time.

So far it has worked out pretty well. Only a couple customers still pay near the end of the month, but they do pay every month. Before the change though, most checks would come at least 20 days after statement was sent, often the first part of the following month. The changes have definitely improved our cash flow during the month so we can pay our bills on time.

07-06-2003, 09:53 PM
Mostly residentials.....

I have a due date at the time I deliver the invoice. Sometimes I am a bit late in delivering and the date on the invoice is already past due when delivered.

I don't consider them late until a month out though. And I don't really do too much unless it really DRAGS and them I hit them hard! $29 late fees, 18% Interest, $100 Collection fee (if court action).

Lawn Lizards
07-07-2003, 07:47 PM
Lawn Lizards bills as follows:

Billing Cycle:

16th day of the month thru the 15th day of the following month.

All work within that period is billed (recorded each day mowed, if not an annual acct). All cuts show on invoice.

Mail out the bills on the night of the 15th or the next day.

All bills are due on the 1st and late after the 5th.

$15.00 late charge. Usually NEVER apply it. We just call and remind them on the night of the 5th or on 6th.

This seems to work very well. Of course we have bills going out constantly because we bill for any side jobs or for people who just call us out of the blue to do their lawn or what not. You constantly have cash coming in and bills going out.

The key is to make sure you collect all those receivables.... That's business.

Lawn Lizards
07-07-2003, 07:49 PM
In Quickbooks, I just have a new invoice started for each "per cut" customer at the beginning of the cycle. Each time we cut the yard, I just add it the invoice, save it, check the box "to be printed." On the 15th, I make all of the annual account's invoices to add to the others. CLICK on PRINT INVOICES and bam, I have them all.

Now I just have to fold em, pack em, stamp em. ugghhhhh

money money money!!

Gr grass n Hi tides
07-09-2003, 07:19 PM
Due upon receipt, because the client has already received 30 days of work & if I tell them "bill due in 15 days" then they have received 6 weeks of service before they cut a check.

Lawn Lizards
07-10-2003, 06:35 PM

That is a good idea because it does make my cashflow a bit difficult. If you do "due upon receipt," how many days (after assuming when they receive the bill) do you give them before you consider it late? I am going to be billing again this coming Tuesday, the 15th. Should I make these invoices due upon receipt with a letter explaining the billing changes? Or should I send these ones out like normal (due on 1st) with a letter giving them, in advance, the changes being made for the 8/15 bill?

Thanks for the info. I just got off the phone with my partner talking about the cashflow. I look forward to the response.


Gr grass n Hi tides
07-10-2003, 10:38 PM
Dave - Fortunately, I have not had any problems with late paying regular clients YET, except for one that is like two months past due for a one time mow. This lady, I know her & I guess she just doesn't think it's important to pay me. That's another story. One thing I took from the experience was - if a friend asks me to provide services again I'll say "I would love to help you out but my schedule is full right now."

Any way, I usually have checks within a few days of my sending a bill. I did buy a rubber self-inking (green) stamp for self addressed stamped return envelopes I send with the bill. I think the convenience of it helps & promotes the professional image.

I settled though, on 10 days as my waiting period before I would consider payment late. 10 days is good I think because that gives them a week to let the bill lay around in a pile somewhere, they cut a check and it gets to me in 1-3 days, tops. Plus, 10 days theoretically keeps me inside my personal "two week block" during each month. I think that's fair. I wouldn't be upset to see that as a client - the 10 day thing. It's reasonable.

I think your idea to send the bills out next week on the 15th as you have in the past together with a letter explaining the change for the upcoming billing cycle (one month later) is a great idea. You're not "springing" anything on them that way. That's plenty of notice.

07-11-2003, 06:30 PM
Originally posted by lawnman250
after 15 days finance charges may be assessed.

Originally posted by edrenckhawnman250
I hit them hard! $29 late fees, 18% Interest, $100 Collection fee (if court action).

Do you both follow the fare credit acts, get their ss#, report to the credit reports, and do you follow your states guidelines?

I charge a hefty "LATE FEE".

I do net 15 due 30, Some commercial was 90 days terms and I have one that asked for 120 days, but they pay on time, and I just had to wait 3 months for the first invoice after that it just stays on a 30 day cycle.

07-11-2003, 07:41 PM
I'll be testing my practices in Court on 8/18/03(?), so I'll let everyone know what happens.

One ex-client is a multi-millionaire, thought $40 per hour was too much - after she signed an estimate and I did the work! A neighbor, I was giving her a break.

Another kept telling me the check was in the mail. But it never came. Finally I told him I couldn't't service his account anymore. BUT, he didn't come out when it was 100 degrees out and tell me to stop did he???