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My first Commercial Contract - ?

Discussion in 'Lawn Mowing' started by Sharp Services, Jun 1, 2007.

  1. Sharp Services

    Sharp Services LawnSite Senior Member
    Posts: 268

    Finally, I have my first commercial account ... it is small but it is a step closer to my goal of having at least 35% of my business - commercial on a year round payment.

    Here is my question.

    The contract starts on July 1 of this year. Should I bill in July for July or wait until August 1 to bill for July. The reason I am asking is if I wait until Aug. then the customer is ahead of me and when the contract expires I could get stuck with the last months bill unpaid.

    How do y'all bill on your contracts?

  2. Nathan Robinson

    Nathan Robinson LawnSite Senior Member
    from 47712
    Posts: 317

    bill now. Most commercial properties take there time on paying
  3. baddboygeorge

    baddboygeorge LawnSite Bronze Member
    Posts: 1,249

    bill a month ahead. it will take 90 days to get a check! Take credit cards an ring there card at the end of the month . its the only way to go on commercials!!
  4. Sharp Services

    Sharp Services LawnSite Senior Member
    Posts: 268

    I will bill on July 1st .... and hopefully get paid before the month is out.
  5. dhardin53

    dhardin53 LawnSite Senior Member
    Posts: 711

    4 of my commercial are billed at the end of the 30 days after I have mowed. For this working in the rears I ask to have a check made out within 3 to 5 working days. (Just ask witch is best for the payroll dept. for the best day to submit the bill so you get paid faster, it may not be the end of the month) This has worked well for me. Or I'm payed after I mow I'm payed immediately from the owners on 3 other commercials. Lot of the time you need to ask what they prefer, but you need to have a response of your preference. Working in the rears is a "trust think" and may times is good for new work relationships. Commercial accounts want a professionally attitude and trust is important on both ends.

    For my residential I ether get payed at the time or it is know I will mow 2 times then get payed before I mow the third time.
  6. Sharp Services

    Sharp Services LawnSite Senior Member
    Posts: 268

    Will it is working out fine. I bill around the 21st of the month and so far have gotten the check by the end of the month. Thanks for all the help!
  7. jlouki01

    jlouki01 LawnSite Senior Member
    Posts: 453

    I bill at the end of month for the month current. Those who have contracts get 30 day terms.. those who don't get 15..

    So for July's work I would bill July 31st and expect a payment by Aug 31st.

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