Behind in payments equals payment options

Discussion in 'Lawn Mowing' started by tiedeman, Jan 5, 2005.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I have a customer that is always about two weeks behind in payments (but yet always pays the invoice total). I was thinking of putting my foot down and instead of constantly charging late fees which I already do, I was going to start to request payment after each service. I have two options: payment upfront in advance or put a credit card on file where it gets billed after each service. What would you do?
     
  2. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    what are your late fees. That may be the problem. If it is like $3 then they pay when they feel like it. If it is closer to the usuary rates then it gives an incentive to be on time.

    Flip side is if they are always paying and paying the fee, it is free (less the cost on the float) money.

    getting payment after each service is more of a headache than getting paid late IMO.

    I offer 2 payment dates. due on 1st and due on 15th. That way people can budget to when they want to pay me. I don't care and so far I have about 60 - 40. Helps make my cash flow easier.

    Just an idea.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Depends:

    How much does he spend each month?
    How much is he worth to you?


    2 weeks behind in payments? Hell around here, that is good as cash IMO...
     
  4. TotalCareSolutions

    TotalCareSolutions LawnSite Senior Member
    Posts: 518

    If he's always 2 weeks late, is he really late? I mean... 2 weeks? I'd say, if theres profit there and they always pay, focus on something else.
     
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Troy knows what he has to do and he does know what to focus on...
     
  6. Yard Perfect

    Yard Perfect LawnSite Member
    Posts: 133

    Seems to me if you are getting paid on a regular basis you are a head of most of the guys on this site. I think I would worry about something else. Most folks pay their bills on a monthly time schedule and many pay them on the same day each month, your schedule is just two weeks different, so...... unless you are going hungry.................
     
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I think that what I am doing is just cracking down on people so they pay their bills on time. I am not hungry for money, just thinking of different things to whip the customers into paying on time
     
  8. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Each week or up front I think would be a pain.
    The credit card, IMO, would be the best way.
     
  9. andersonmowing23

    andersonmowing23 LawnSite Member
    Posts: 84

    The credit card isn't a bad idea, but remember that can cost you money to. If he always pays everything and is a good customer I wouldn't really worry about it to much, If he wants to pay your late fee I guess thats up to him, You could consider increasing your late fee, think that was mentioned before. Also is this your worst paying customer, Cause if it is, imo you are doing pretty darn good then.
     

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