payment on commercial accounts

Discussion in 'Lawn Mowing' started by Bingham Brothers, May 22, 2007.

  1. Bingham Brothers

    Bingham Brothers LawnSite Member
    Posts: 66

    Do I need to worry about payment from large companies (Fortune 500) . My largest commercial account is 2 weeks past payment on a net-30 contract. I am a small one crew lco and I am starting to feel the pinch of having $18k in accounts receivable from one client.

    What experience do others have dealing with commercial accounts?
     
  2. DuraCutter

    DuraCutter LawnSite Senior Member
    Posts: 806

    First, you've got a big chunk of your eggs in one basket, so that's a bit uncomfortable. Call the accounts payable and find out who in charge of paying or issuing the cheque. Introduce yourself and tell that person you were wondering when the invoices are scheduled to be processed and payed out. It's that simple and you'll probably find out their plans. Sometimes when it's 30 days, you can miss the deadline and it can wind up being 60 actual days before you see your money. Make the call. It's worth it to put your mind at ease. Tell us what happened will you?

    :)
     
  3. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Posts: 739

    Two weeks late? You are lucky. I have waited 60 days plus. Don't sweat it, find out who writes the checks and place a nice call.
     
  4. wrtenterprises

    wrtenterprises LawnSite Senior Member
    Posts: 318

    I've always had to wait for my money from the big players. Just the way the business works. Plan on 45 days net minimum, and count on 60 days with regularity......
     

Share This Page