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Billing - Accounts Receivables Nightmare HELP!!!

Discussion in 'Business Operations' started by cclc1021, Jun 22, 2005.

  1. cclc1021

    cclc1021 LawnSite Member
    Messages: 66

    My husband and I just bought a lawn care business. We purchased 72 residential client accounts. We sent out our billing statements June 8, for May. We have only received 10% of payment. I want to get away from direct billing and offer payment by credit card and or payment at the time of service via cash or check. I am trying to write a letter letting my clients know about the new payment options. I'd apprecaite any suggestions and or templates.

    I also want my clients to sign contracts for lawn services. Does anyone have any sample letters requesting a contract?

    Thanks for any help!!

  2. wojo23323

    wojo23323 LawnSite Senior Member
    Messages: 608

    You should have sent them out June 1st. Average response time for my customers is 1-3 weeks. Some go 4 weeks. Give it some time.
  3. cclc1021

    cclc1021 LawnSite Member
    Messages: 66

    Thanks for the advice. I appreciate it.
  4. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Messages: 1,397

    It will be difficult to get the existing clients to change to the credit cards. Some of them will but most won't.

    I would suggest that you send out the bills on a specific day each month - like the 1st - and require payment by the 15th or 20th. If they are late, tell them that you will require a credit card from them in order to continue service. You should bill the credit card each time that you service the property.

    Residential accounts should not require a contract unless you are full service and have spent more upfront time and money on them. As long as you are doing a reasonably good job, they will not change companies. If they do change, for the most part you will be glad that they did.
  5. cclc1021

    cclc1021 LawnSite Member
    Messages: 66

    Thanks for the advice. I appreciate it. I'll let you know how I make out.


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