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how to collect unpaid money?

Discussion in 'Starting a Lawn Care Business' started by kebrowns, Aug 26, 2013.

  1. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    The problem can be two fold. When I sign up a new customer they are told they have to pay 10 days from the date on the invoice. They're late. They get reminded. They're late again they get dropped. I tell them is not me not trusting them though I need to get paid on time to prevent cash flow problems.

    Second problem is people get too caught up in growing their business they take on people at less then their regular price and keep on customers that should of been dropped a long time ago.

    A good business can not be built on bad customers.
     
  2. Locqus

    Locqus LawnSite Senior Member
    from Detroit
    Posts: 708

    So true. We are definitely struggling with cash flow problems as well because of that. Indeed, it cannot. Will be doing some heavy "weeding" over the winter to make our operation based on better customers, bigger size is not worth the headaches.
     
  3. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,938

  4. Bridging Financial

    Bridging Financial LawnSite Member
    Posts: 8

    Hey,

    I hate it for your guys that work so hard to build a profitable business and then people don't pay for the services.
    A checking account number on file (being trustworthy with that information could be challenging), or a pay as you go system may help and increase cash flow. Ive seen a client not pay, and service continued until the debt was out of control because of poor bookkeeping. That's why I mentioned pay as you go, to help monitor payments, and increase cash flow. Mechanics get paid after the mower is fixed, why should you get paid after mowing each time. Just an Idea that I've seen work in my own business to reduce late payment, no payment, and scary word CONTRACTS.
     
  5. One Cut Away

    One Cut Away LawnSite Member
    Posts: 16

    Kebrowns, have you glanced at the Georgia Lien Laws? Maybe worth a look. In Florida we have them, but we can't lien for lawn services. We don't pass gas without a signed proposal which has specific verbiage about cost of collection being on the client etc.

    Good luck with it. If it's less than $500 you may want to just learn the lesson and keep moving. Someone famous once said, "Forgive your enemies, but don't forget their names". Who was that? Churchill?
     

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