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  #1  
Old 08-20-2002, 09:09 PM
grassassassin grassassassin is offline
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Join Date: Aug 2002
Location: Virginia
Posts: 51
Receivables Receivables Receivables

I am so sick of not getting my money in time. Do you guys have the same problem. I bill my customers after every two mowings.(most customers say that they don't like for it to accumulate.) I've got some people that owe me for two months. My cash flow is o.k. but there is some equipment that I'd like to buy, but can't because I need to watch payroll. Sure there is credit, but who wants to pay intrest. Besides who's to say that checks will all of a sudden come running in to take advantage of a same as cash for 90 days deal. Do you guys charge a penalty for late payments. How much is acceptable. Right now I feel like charging a 25 dollar late fee. Thanks in advance for the help.
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  #2  
Old 08-20-2002, 09:31 PM
KenH KenH is offline
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Join Date: Jun 2002
Location: CT
Posts: 1,622
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Last edited by Administrator; 08-28-2002 at 09:33 PM.
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  #3  
Old 08-20-2002, 09:36 PM
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KLMlawn KLMlawn is offline
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Join Date: Apr 2001
Location: Long Island, NY
Posts: 443
I bill every week, and the majority of my customers actually PAY, every week. There are a few thatI miss, or just honestly forget to leave the money in the agreed upon location occasionally, and they catch up the next week. Then there are those that seem to think the Lawn magically mows itself, even though I leave them a bill every week with the acumulating balance.
For these individuals, I have told them when they started as well as having recently sent out a reminder, to everyone, that our agreement is weekly and although I do try to work with everyone, I expect ALL account balances to be brought to date by the 31st of every month. If payment has not been received by then, the will be charge a $5 late payment fee or 2% of the outstanding balance, which ever is greater. In addition, we reserve the right to suspend service till the full balance has been received. For the most part they are all up to date.
Last year I only got burned about $100 total.
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  #4  
Old 08-20-2002, 11:15 PM
wolfpacklawn wolfpacklawn is offline
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Join Date: Nov 2001
Location: Reno, Nevada
Posts: 120
I bill monthly and almost always get paid on time. Right now I have only $70 over 30 days and that's at billing over $10,000 per month. One thing I make very clear with every new customer is that the bill is due upon receipt and that I expect to get paid within a week of billing. That seems to help because almost everyone does pay within a week.

I also have at the bottom of all my invoices that there is a 10% late charge for any balances over 30 days.

Service is stopped if any balance is over 30 days unless reasonable arrangments have been made or they have been a long time customer with a good payment record. If paying late becomes something that happens regularly then they are put on a pay as you go program. That means leave a check for me or the lawn doesn't get mowed.

All these things have made things fairly easy for me. I did not have to write off $1 in bad debt last year and only $125 the year before that.
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  #5  
Old 08-20-2002, 11:18 PM
TSS TSS is offline
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Join Date: Sep 2001
Location: Indiana
Posts: 31
We bill monthly and also have yearly contracts with our residentals. Our contracts state that if payment is not recieved by the tenth of each month a 5% late fee will be charged for any outstanding balance. Every estimate along with every invoice is highlighted and clearly states the late fees on them. So far no late fees have been recorded this year. Since they signed an estimate or contract hard for people to say they didn't see the late fee clause on them. Unfortunately, some people are over paying on the yearly contracts. Extra money now but less in the winter months.
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  #6  
Old 08-22-2002, 06:07 PM
grassassassin grassassassin is offline
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Join Date: Aug 2002
Location: Virginia
Posts: 51
Thaks for the help guys. I think that the yearly contracts sounds like what would fit our business best. It gets costly to mail so many invoices every two weeks. I started to drop them off when we mowed. Thanks again. Maybe next year I'll have everyone on a contract.
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  #7  
Old 08-26-2002, 07:22 AM
RoyaleRcr RoyaleRcr is offline
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Join Date: May 2001
Location: Minnesota
Posts: 49
I Don't Play Games Anymore!

Annual contracts in advance or at least 1/2 up front and ballance June 1st. Or Monthly in advance., if not recieved by 10th of month they will be skipped. If a customer balks at this I don't want them. If we don't stick up for ourselves, nobody will!

GET TOUGH!
Jeff
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