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Discussion in 'Business Operations' started by stevenf, Jan 19, 2008.

  1. stevenf

    stevenf LawnSite Bronze Member
    Messages: 1,612

    I have all of my advertisements finished, now Im looking to get an agreement paper ready.
    I want to send a bill every 14 days so I would only be out 2 weeks if they didnt pay. Is this the only way to avoid losing money? Can a signed AGREEMENT been enough to bring to small claims court?
    I will expect them to agree to the weekly service, 14 day billing by mail, and agree to let me know of any problems. Im trying to make it so people wont be scared away by a contract.
    Is there anyway to word this agreement that will help to not lose money or does losing money just come with this type of business?
  2. d&rlawncare

    d&rlawncare LawnSite Senior Member
    Messages: 741

    prepay is the only way to be 100% sure you get paid. Getting commercial ccounts to do that is IMPOSSIBLE here. Offer a discount for prepay for the full year.
  3. Petr51488

    Petr51488 LawnSite Silver Member
    from NJ
    Messages: 2,377

    I would never do a 14 day billing cycle. First it would be too much work on my end. Typing and mailing out the invoices twice a month is just too much. You have a point that you would only loose 2 weeks for non payers, but seriously, do you have that many customers trying to stiff you? I do mine once a month. In the past 3-4 years of business there was one guy who hasn't paid. He owed me over 1k at one point, sent me a letter saying that he's been sick with a 400.00 check. 1.5 years later, he still owes me 600.00. I'll get my money sooner or later.
  4. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,806

    did you even give thought to what you have typed?? to start, if you bill after 2 weeks, the checks dont arrive the next day. it takes a great number of my customers at least 2 weeks to pay, which is my due date, but many take a good month. so your theory is horrible, you'd be out a good month before you really had an idea. your bookkeeping would be horrible and your customers would be aggrivated paying twice a month, i would!
  5. Jlawnmow

    Jlawnmow LawnSite Member
    Messages: 154

    Your going to lose money in this business!!!
  6. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Messages: 1,674

    This year I'm switching to a bill being due in 15 days and at 30 days a $25 late fee is added. I only bill monthly, if they don't like that then I'm not the guy for them. I think alot of customers would be scared by your method. Heck try it, might work, might not.
  7. stevenf

    stevenf LawnSite Bronze Member
    Messages: 1,612

    I guess I will go with monthly billing. I was just kinda worried about the 6-8 weeks without any payments.
    Now, If a customer decides not to pay, your out 6-8 weeks of pay from them.... What is the minimum you would bring to small claims court? Do you think we would even stand a chance with only a signed agreement?
    Also, Do you give a cancellation fee of time period? If you give a time period (14 day cancellation notice), Do you continue to cut or do you charge for two services once they drop you?

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