Non-payers

Discussion in 'Business Operations' started by Wells, Dec 11, 2005.

  1. Wells

    Wells LawnSite Member
    from SLC UT
    Posts: 0

    I was thinking about clients that fail to pay their lawn maintenance bill each year and the dilema of having to chase down your money through the court system and thought there must be a better way to collect.

    Then it dawned on me that you could always require new clients to keep a credit card on file with your company. Then if they try to get out of payment and stiff your company you could process the card for the amount owed.

    The same thing is required when you rent tools at Home Depot, rent a car, stay at a hotel, etc, etc.

    I think clients would be more willing to pay the final bill if they know your going to process payment through their card.

    Has anyone tried this before?
     
  2. CutInEdge Lawn Care

    CutInEdge Lawn Care LawnSite Senior Member
    Posts: 677

    I think if you have them sign an invoice per service performed then you could legally pull from their CC. Most of the big co have all their legal mumbo jumbo in such small print that no one reads. I believe a hard sell in the lawn biz. Just my .02 cents
     
  3. SouthernYankee

    SouthernYankee LawnSite Senior Member
    Posts: 789

    There is some guy on lawnsite that actually does this...I forget who, but he sayes it works....but I agree a hard sell.
     
  4. dsmrolla06

    dsmrolla06 LawnSite Senior Member
    Posts: 305

    If you have no proof of service or a contract signed, than they could always do a chargeback.
     
  5. greengiant9963

    greengiant9963 LawnSite Senior Member
    Posts: 761

    I have noticed to that the people who complain and call you about every little problem they have are the last ones to pay. I am probably going to have to take 2 new customers to small claims court this winter. I don't enjoy going to court. But not many other options. All the running around and hassle of trying to get the money you are not getting compensated for either.
     
  6. marko

    marko LawnSite Senior Member
    Posts: 963

    I would think the charge backs would eat up any savings. Justmowit has a good plan of ONLY accepting credit cards. This is a two fold bonus as you never have to wait, process, go to the bank etc, and also the customer almost forgets it there because its a re-occurring charge. They are less likely to shop or stop the service. All they know is that their yard is done.
    DFW claims to have good succsess with www.olddebts.com (or something similar)
     
  7. JustMowIt

    JustMowIt LawnSite Senior Member
    Posts: 367

    We have tried what you are describing "default" credit card charging, now we charge all services to a credit card the day after each mow. If you are interested in hearing all the different statistics, just give me a call. It would take several pages of typing to describe this in detail.

    TJ
    www.justmowing.com
    972-907-1111
     
  8. P & L Turf

    P & L Turf LawnSite Senior Member
    Posts: 272

    What if your company doesn't take credit cards? Is there any other methods besides breaking both of their legs!!??? Cause I've never taken credit cards for payments. I never really looked into it, mainly because I think it will be added office work that I don't really want.
     

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