How do you collect?

Discussion in 'Business Operations' started by Set Apart Lawn Care, Apr 2, 2012.

  1. Set Apart Lawn Care

    Set Apart Lawn Care LawnSite Member
    Posts: 189

    I have to say hands down the hardest part of this business for me has een collecting. It was easy to just have people leave checks and what not when I had 50 customers, now it's hard to keep up with it all. We just signed up with an eletronic payment processing company, hopefully I can get a lot of customers on board and that will help.

    Having to float the business expenses while I am waiting on checks to come in is often a big source of stess. Anyone relate? What are the the ways you guys have found it effective to collect?
  2. MTenterprises

    MTenterprises LawnSite Senior Member
    Posts: 326

    Payment due at time services rendered. Same as their doctors office visit! The exceptions are the commercial accounts that pay monthly.
  3. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,717

    We bill monthly, the only tough part is in the spring when the budget is low from the winter layover. My residential accounts were a little hesitant but then realized instead of writing checks weekly they write one check per month. Seasonal clean-ups are billed once the job is complete. If you have good customers and aren't worried about their checks bouncing like a rubber ball. Try a monthly billing cycle if the electronic idea doesn't work for some of your customers.
  4. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Billed monthly for lawn cutting and everything else is due at completion of job.
  5. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    Be professional, bill monthly. If a customer becomes overdue, stop service.

    I know it gets tight in the Spring but, if you manage the money well you will be ready for it

    I personally, would be turned off, if I had to leave a check every week.
  6. Durabird02

    Durabird02 LawnSite Member
    from Indiana
    Posts: 144

    I completely agree with you. I bill monthly for mowing and usually have a bill in the mail the next day for all other services.
  7. ptjackson

    ptjackson LawnSite Member
    Posts: 211

    Many of the sites like paypal let you do subscription billing. Depending on what your uncollectible amounts are this might make sense because you save time having to track down all those payments. As a customer I hate having to write out checks for bills, just give me something that happens automatically BUT that I have the ability to turn off if for some reason I'm not satisfied.
  8. Set Apart Lawn Care

    Set Apart Lawn Care LawnSite Member
    Posts: 189

    Thanks everyone this has been great! Yea I have had trouble in the past invoicing weekly and every two weeks with checks and invoices overlapping in the mail. When there is confusion the customer always gets the break and I end up losing a cut or two worth of payment.
  9. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Posts: 1,402

    @JRS. Where are you out of?

    As far as billing, I do the same as most. Bill at the end of the month. Like the rest of the guys up north, first of the season can be tight especially with a weak winter and not much snow removal. Make the best of it. Next season I may consider a regular monthly payment that's the same each month and due at the beginning of the month of service. Not totally sold on it, but we'll see.
  10. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,717

    southern part of york county

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