How to get paid.

Discussion in 'Starting a Lawn Care Business' started by tsimmons27, Oct 18, 2008.

  1. tsimmons27

    tsimmons27 LawnSite Member
    Posts: 9

    What is the best way to receive payments for services rendered? I have heard of getting the payment at the time of service and also sending an invoice to the client. By sening an invoice,however, it is easier for the client to send payments late or not at all. Which way do you believe, by your past experiences, is the best way to receive payments while at the same time, making sure to receive the money that is due?

    Thanks for your help.
     
  2. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    for the most part people pay their bills. There are a few exceptions and many on here have voiced their opinions on them. In my area people still have alot of ethics. I have most of my customers that pay each time I mow, and if they are not home to pay me I usually get a call that night apoligising that they were not there and asking when I would be by to get my money. Now that is the only problem I have with paying each time, then it becomes a problem to get back out there for my money. Currently I tell them I'll get it when I mow again. Next year however, because of that, I will begin billing everyone at the end of each month. I believe that will be easie on all concerned and make my bookkeeping easier too.
     
  3. M RASCOE&SONS

    M RASCOE&SONS LawnSite Bronze Member
    Posts: 1,475

    my advice would be to set your maintenance up on a monthly cycle with a due date on the invoice every month.if your doing installs or other work i would have contracts with paid upon completion,i would also get material costs up front if not at least half so your not bankrolling the whole job.:drinkup:
     
  4. Lawn Pawn

    Lawn Pawn LawnSite Senior Member
    from zone 3
    Posts: 568

    For weekly service new accounts residential......

    I am now requesting payment before I leave the job. Check or cash is left at selected location.... or in person if homeowner is there. I leave a receipt... very simple!

    If they do not leave payment.... I have self addressed envelopes with a polite note requesting they send payment before next due service. No pay..... or a phone call from them... I may not show up next week.

    I've been strung out for a thousand bucks last year because I trusted people... this year I'm waiting on over five hundred. You'd think I would learn! The pay as you go has been working so far since I started that.
     
  5. mattfromNY

    mattfromNY LawnSite Bronze Member
    Posts: 1,581

    I just send bills, and get paid. Very seldom does a bill get paid late, and until that becomes a problem, I will just send out bills at the end of a job or at the end of the month for weekly accounts.
    I dont have time to chase money every week/ every job. Just the time it takes to talk to each client would not be worth it to me. Many of my bills are E-mailed to customers, so stamps and envelopes arent really a problem.
    I have found that once my business was established, with a good batch of customers, I pretty much have checks coming in every day, anyway, so no need to chase money every day.
     
  6. tsimmons27

    tsimmons27 LawnSite Member
    Posts: 9

    thank you to everyone who has given me some info. concerning this matter and any other suggestions would be greatly appreciated
     
  7. CALandscapes

    CALandscapes LawnSite Senior Member
    Posts: 946

    If you're aiming for professionalism and growth, either e-mail or snail mail invoices at the end of every month.

    In your contract you should have a clause stating the payment terms (invoices must be paid in full within 30,60,90,whatever # of days)
     
  8. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    simply put Monthly, its cheeper. God I hate invoice day, Jsut mailing them out cost me around 2 to 3 hundred dollars.

    could you imagine if I did this WEEKLY ???????
     
  9. DLAWNS

    DLAWNS LawnSite Fanatic
    Posts: 5,778

    I definitely bill monthly. Yeah, some people pay late or try not to at all but that's what late fees and small claims court. Sometimes it sucks but it's all part of the business.
     
  10. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    I bill monthly. Invoice is left on the door at the end of the month and they have till the following billing cycle to pay me.
     

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