Slow payers

Discussion in 'Starting a Lawn Care Business' started by Coastal Lawn, Jun 7, 2004.

  1. Coastal Lawn

    Coastal Lawn LawnSite Member
    Posts: 16

    Do any of you guys have slow payers. I charge by the Month and mail out the bill a week in advance. Still it takes two or more weeks past the due date for them to pay. I think sometimes they think we just do this for fun like the neighborhood kid with a push mower, I really get pissed. Any suggestions.:angry:
     
  2. hole in one lco

    hole in one lco LawnSite Bronze Member
    Posts: 1,793

    We are at the bottom of the stack of bills and it seem the more money they have the longer it takes to collect.
     
  3. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    Yes I think everyone has slow payers.
    Count your blessings, at least they are PAYERS of some sort!:D
     
  4. medimac

    medimac LawnSite Member
    Posts: 33

    all of our customers are on a signed service agreement and in that agreement it states that if payment is received after the 15th of the month that a 10% fee will be added. When we send out our bills at the end of the month it has the total amount due and the total amount due if received after the 15th. This helps to eliminate late payments and gives them two weeks to make the payment on time.
     
  5. dmbmikee

    dmbmikee LawnSite Member
    Posts: 84

    I am a head hunter. Any requests?
     
  6. lawn

    lawn LawnSite Senior Member
    Posts: 344

    Medimac, sounds like a good idea. What kind of bills do you use? where do you buy them? I just use a basic one.
     
  7. kandklandscape

    kandklandscape LawnSite Senior Member
    from PA
    Posts: 341

    We do landscaping for Eckerd drug store. Which is owned by JCPENNY.
    Ladt year was our first year, and of course took over 3 months to get paid!!! Thje lady said she set me up as a temp vendor... well this year rolled around, and of course no check!!!! So i called them up and the lady said i need to re set up a account. Takes 3 weeks.

    The lady found my old vendor # and re opened it. So, now I am really pissed. It will not be here until the 24th of the month, and my CC bill is due on the 25 lol.....

    I charge a 10% late fee each week a bill is overdue.

    So, 3349$ times 3 weeks late, hell i can live off the late fees!

    Another one to watch is Lonestar reast. They will rip you off if your eyes get closed.

    Perkins family reast only mails bills out net 30

    Ryans reast is a VERY good company to work with. They always gave me a 25% discount! NICE!!!
     
  8. mac777

    mac777 LawnSite Member
    Posts: 2

    As soon as I'm done with the customers lawn, I write and give them a bill. Somtimes I'm paid right away, other times I'm not. If it goes over thirty days I send them copies of past due invoices. If there still not paid then I call them and let them know their overdo. They usually will send the check right out. Also, it pays to be diplomatic. Charging interest after thirty days usually motivates them also.
     
  9. LCME

    LCME LawnSite Senior Member
    Posts: 430

    In my contract is states bills are mailed by the 5th. Payment is due by 15th if past due a $10 late fee is charged on the next bill and I stop lawn services until payment is received. And, if after 30 days I contact an collection agency and /or lawyer. The customer agrees in the contract to pay all court costs, fees, etc. One of my new customers first invoice did not pay on the 15th. I had to drive to there home and ask for the check now. Got paid and gave them my cancellation of service notice. See ya.
     

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