Commercial Account Billing Question

Discussion in 'Business Operations' started by sgl41377, Nov 7, 2006.

  1. sgl41377

    sgl41377 LawnSite Member
    Messages: 191

    I was just rewarded a large commercial account. I usually bill all my residential customers on the 15th of the month and their payments are due on the first of the next month. They all pre-pay for the month. Do any of you do the same thing or is this not right? I have gotten burned a couple of times for really late payments and think it is safer to try and get paid before doing the work. I have never had any complaints about the system I have in place. Now this commercial client is not really wanting to pre-pay for the month. It is a $775 a month contract, so I would give in but he is asking for the reasons why I ask for pre-payment. Am I wrong or right?
  2. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Messages: 2,524

    Businesses generally pay after services are rendered. Don't be surprised if they want you to bill at the end of the month completed and then they take as long as 30 days to pay. But, I've never had a commercial account not pay me.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    Have a person with the authority sign a contract. Most commercials are net 30-90 days but they always pay
  4. Green-Pro

    Green-Pro LawnSite Bronze Member
    Messages: 1,420

    What Mac said.....ditto
  5. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    Since when does the debtor state the payment terms? All these lawn guys willing to let the debtor pay when they feel like it makes it difficult for everyone else. You bill, you have a DUE DATE. ENFORCE IT

    I dont get it......Do you think they pay everyone else at 90 days or whenever they feel like it?

    I bet the electric bill, mortgage, insurance, phones, banks, credit cards, and loans etc get paid on time. Why shouldent you get paid on time?

    Im a business. Im gonna try that and send my visa payment in 90 days and tell them that "Thats how we pay". Im sure they wont mind

    Ill try that with my suppliers and see if they still let me sign for materials.

    Maybe the phone company will leave my phone on for months without payment.

    Next time the landlord stops for his rent check for my shop, Ill tell him that its being processed and he should have it in a couple months.

    When are the lawnboys gonna wake up and grow a spine and stop acting like puppies drooling over the work so much that they dont care when they get paid.

    Im not gonna say that we never have to chase our money but the day that an invoice becomes past due, WE BECOME THE ONES IN CHARGE.....We have no reservations about calling and pressing for our money and stopping service if necessary. A late bill is THEIR PROBLEM, and should be treated as such. Instead people are to shy to call begging for mr big account to throw a few crumbs to the little lawn boy.
  6. jt5019

    jt5019 LawnSite Bronze Member
    Messages: 1,432

    I bill my commercial accounts at the end of the month (same as my residential customers) and like someone said earlier it takes up to 30 days for them to pay but they always pay. My residential accounts have a due date of the 15th
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    Youre not asking for prepayment. That is your policy and how you bill for your service.

    Do you question the billing of all of your vendors? Or do you pay the way they say they require it?

    Take your truck into a repair shop and when you go to pick it up just say "Hey bill me"....See if you leave with it....... (yes i know there are exceptions if you have a relationship already)

    HAHA talk about another Procut rant......This thread just popped up as Im getting ready to send out service suspension letters to the snow contracts who havent yet paid by the due date. All of which are due IN ADVANCE....

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    I'm surprised you got this account without them realizing about the pre-pay aspect.

    Like it or not...many commercials go mainly by price...they get several bids, they don't really give a sh** how a vendor bills.

    Since most commercials tend to be on a contract they don't cancel mid-season like a residential, this may be why they are questioning the prepayment.

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