When to cut off services?

Discussion in 'Lawn Mowing' started by dutchacres, Oct 24, 2011.

  1. dutchacres

    dutchacres LawnSite Senior Member
    Posts: 516

    I was wondering when you guys cut off a customer for non-payment? I am net 15 days on new customers so I cut off after 45. Most of my commercial accounts are net 30 and get cut off after 60. I am taking on 2 large apartment complexes next season and I have always had bad luck with these types of accounts of paying me on a timely manner. I dont know why all these places think the lawn care guy can get stretched out for 90-120 days when they cant get away with it for there water, electric or any othere service provider. I want to be fair but also feel like I need to protect myself also.
     
  2. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,708

    I give 5 days grace regardless if they are due 1st or 15th. They get a phonecall, text, email or paypal reminder. If I don't get a response in 24hrs they are suspended. No pro rate, any missed service because they were late is made up at MY convenience. I explain up front I make myself available when they need me all I ask in return is timely payment.
    Commercial is notorious for net 60-90. What incentive do they have?
     
  3. calvinslawnservices

    calvinslawnservices LawnSite Senior Member
    Posts: 806

    Mine is due on the 15th or the 1st of the month. I haven't too many problems with people not paying, I had one that was 2 weeks late but he was jerking around with quicken or w/e. I cut 2 more times after the due date and if a agreement isn't reached then no more service.
     
  4. dutchacres

    dutchacres LawnSite Senior Member
    Posts: 516

    I don't usually have to many problems with payments but when I have been burnt it has been by apartment complexes. I am sure they wouldn't put up with a renter going 90 days before payment before they kicked there butt to the curb. I am understanding but I am also a business that has to pay bills just like they do. If I don't get paid I can't pay mine and it is a bad deal for everyone. I did have a customer at a nursing facility that was 60 days and on the next invoice I highlighted when the due date was and told them I am going to start adding a late fee if not paid when due. I had my check the next week! I start out at net 30 for all my commercial account but if they don't pay on time I bump them back to net 15 then if that doesn't work I get paid before I work.
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  5. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,708

    With the apartment complex I think I would "occupy" a chair in the managers office until they cut me a check.
    Posted via Mobile Device
     
  6. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    Some apartments only pay at 90 days. You should find out and then bid accordingly.
     
  7. ecurbthims

    ecurbthims LawnSite Senior Member
    Posts: 468

    thats the ticket ! always ask how they pay when first checking into a comercial property ,then adjust your quote accordingly .If they say 90 days ,put in your contract 90 days with collections and interest starting at___ days .
     
  8. fireman gus

    fireman gus LawnSite Senior Member
    Posts: 517

    We bill on the first of each month and give the client 20 days to pay. Normally we will bill the next month and if not paid, in full, by due date we cancel.
     
  9. HRidgeLandscapes

    HRidgeLandscapes LawnSite Member
    Posts: 82

    The property manager we do most of our complexes with is usually calling me before i can a bill to her so she can get us paid... but we give them 30 days then they get a late charge after that with 30 days to pay then its no more service
     
  10. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,752

    I've never put a due date on an invoice, and play each individual account by ear. One of my best customers seldom pays the invoice in under 30 days. In fact, here it is the 24th, and I still haven't received payment for September, but I know he is good for it.

    If I was concerned with a new commercial account, I'd simply put the terms in the contract. If they agree to them, then the monkey is on their back.
     

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