Originally Posted by BradLewisLawnCare
The difference between plumber is recurring service. That being said, we have a bunch of customers that pay late. By late I mean, we do the spring cleanup in march and start mowing in may. Then we do fall cleanup in october and by december, they start calling saying: " I know I owe you a bunch of money. I will get you a check when I am back from florida."
Most people would say, you are crazy. They have a financial formula for this called Accounts receivable turnover. http://en.wikipedia.org/wiki/Receivables_turnover_ratio
Every business is structured differently. I personally would rather have the money now rather than later, but I don't mind the guys working and getting the money in the winter so long as I am not completely broke. It seems as though no matter what happens, we can not get Accounts Receivable under $10k until the winter time.
Then we just send a pink invoice saying "Last bill before we apply for a mechanic's lien". They always pay then.
That being said, I bill monthly. If it has been 60 days we usually go out of our way to make sure we are not sending to the wrong email address and/or they are getting the invoices.
Some people think that is outright crazy. Some would say normal course of biz. Everyone has different levels and tolerances.
The point of this was that the one person I was quoting is a police sergeant/detective of our local police department. It is nice to have him in your back pocket. for anything.