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Customers that don’t pay until after service is done

Discussion in 'Business Operations' started by Cmonstihl, Oct 7, 2019.

  1. Cmonstihl

    Cmonstihl LawnSite Member
    Messages: 32

    Have a customer that doesn’t pay until after service is done. Gonna bring up the topic of payment is due at time of service. Hes usually home all day, however the Last two services he didn’t pay until two hours after I left and today he forgot to put the dogs back so had to reroute and work my way back to his property. don’t like the stress of chasing money but understand sometimes it comes with the business.
     
  2. snomaha

    snomaha LawnSite Bronze Member
    from midwest
    Messages: 1,642

    Getting paid two hours after the service is completed is chasing money???
     
  3. Mark Stark

    Mark Stark LawnSite Senior Member
    Messages: 872

    Depending on the service and whether it's residential or commercial, we often wait 30-60 days.
     
    1620cwj, kemco, Cam15 and 8 others like this.
  4. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 6,704

    Well if they don't prepay they are paying after service is done.
     
  5. JMK26

    JMK26 LawnSite Fanatic
    Male, from Missouri
    Messages: 12,313

    Don't get into commercial work. You'll be waiting 90 days or more.

    I only do residential and my NET is 10 days on invoices.

    Some guys do prepay, some do at time of service and others do like I do...1st of the month. It's all personal preference. But waiting two hours to get paid isn't that big of an issue.

    Honestly if I had to pay for a service each week I'd get another company that offers pre pay or end of month invoicing so I only have to pay once a month. I don't want to write 4 checks a month to someone...or leave cash 4 times a month.
     
  6. Marshall's Yard Service

    Marshall's Yard Service LawnSite Senior Member
    Messages: 290

    My only customer who pays me once a week is a friend I mow for from church. He pays me at church on Sunday. His offer for when to pay was at time of service, his wife would pay me, or on Sundays. I told him whatever was better for him because I just put money I get paid during the month in an envelope and wait to "really get" the money till the first week or so of the next month once my other two customers pay me.
    But really, two hours after service is too long waiting to get paid?!?
     
    tammy robbins, Tara Ann and sjessen like this.
  7. OP
    OP
    Cmonstihl

    Cmonstihl LawnSite Member
    Messages: 32

    This pertains to two properties, on feedback it seems the variables are obvious. Prepay, time of, or net 10. I’m just wound up, this is my first year in the business and I’m still learning.

    if I don’t remind a client, they forget. So I’m a little on edge when I mow that they won’t pay. Hate bugging them. After this seasons experience, next year Ill be charging a card on file to time of service. Less stress for me.

    commercial doesn’t intimidate me, if they don’t pay there’s small claims. I’m just gathering feedback
     
  8. Chilehead

    Chilehead LawnSite Silver Member
    Male, from Stockbridge, GA
    Messages: 2,253

    You may want to implement a standard payment policy for all your customers. For instance, I invoice all of my customers on the first of the month for the previous month's services. Terms are net 10. This is how is is for everyone--no exceptions. Managing cash flow gets really easy if you do something like this.
     
  9. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 6,704

    I agree he needs to set up payment and billing terms.

    Are you collecting money like little Jimmy the neighborhood lawn kid or Jims lawn care the neighborhood lawn service?
     
  10. JMK26

    JMK26 LawnSite Fanatic
    Male, from Missouri
    Messages: 12,313

    And small claims won't intimidate a multi million dollar property management company.

    But my point wasn't they're 90 days late in paying...it's typical their contracts are 60, 90, 120 days net.

    Make sure you're PCI compliant and all that jazz before handling other people's credit/debit cards, with permission n'at.
     

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