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What to do about slow paying commercial

Discussion in 'Lawn Mowing' started by kc2006, May 22, 2006.

  1. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    I have this one commercial account that is a nation trucking company, this is one of their hubs. Well they're slow paying. Due date was the 20th and on the 30th contract says I will charge $20 late fee and $2 a day after that.

    Well I knew it was going to be like this, national companies are for the most part slow on paying the lawn maintenance bill from what I've read so I knew. I won't discontinue services, it's a good paying account so the heck with it, I'll keep tacking on their bill and at the end of the year if they owe a couple thousand well that will be a nice christmas bonus. So what I'm thinking is calling the corperate extention I have and saying if I don't start getting payment on time or close to on time I'm going to start sending the next month out in advance this way they have a month and a half to pay up instead of 15 days.

    Can I do that? I know it doesn't say anything about that in the contract but it's just a thought.
  2. Avery

    Avery LawnSite Bronze Member
    Posts: 1,389

    Most commercial clients are slow payers...
  3. Luvs2Play

    Luvs2Play LawnSite Member
    Posts: 246

    Several of our commercial accounts only print checks once a month. It saves them on payroll. Also, the invoice has to be sent to another location and go through another approval before being accepted for payment. All this takes time. Getting tough with some of them will only have the job put up for bids again, and your bid will not be accepted, no matter how good the service was.
  4. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    The manager at the hub set me up with the direct address to send the invoice, he said it will shave about a week off the response time.

    I guess I'll just let them be slow payers then since it pays well and it's a really easy job.
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    By slow payers, are you having to wait 180 days or so? Not to get wise with you sir, but that's slow pay so I would likely leave it alone so long it's anything under 30 days which is a bit annoying but still great !

    This is for commercial, not resi.
  6. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Posts: 3,503

    Slow pay beats not paying at all, and hey if they are 60 days or so paying.........then that means you will have some money coming in around Christmas and Jan. If it doesnt put you in a baind to bad then I wouldnt complain too much

  7. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    That is just part of the commercial game. I have some that take 45-60 days to pay a Net 30 acct. I have one that the Contract states it is an immediate pay upon presentation of invoice.....and THEY were the ones that wanted that in there, not me as I usally do Net 15 or Net 30 at the END of each month on commercials. Even after they insisted they wanted to pay the same day they were invoiced and it still takes them 20 days to pay each month :dizzy: ......BUT it is a $65,000.00 a year acct.....I can wait a few extra days :laugh:

    With commercials look at the BIG picture and the end results as I do with this one. :payup:

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