Discussion in 'Business Operations' started by AEW, Jan 7, 2005.

  1. AEW

    AEW LawnSite Member
    Messages: 161

    Hey guys whats up
    I have a question about contracts. I have a new residential contract made up and was wondering what most people do with payments. Accept them after sevices or before? I had been wanting to send invoices out at the end of the month and payments due within 15days...with an innitial deposit of a certain % at the begining of the year with it refunded on the last invoice.
    Or should I take payments one month in advance with no deposit? How do most of you do this? I think I am only confusing myself here...
    I am worried about mowing for a month for someone and them moving out of town or something and never hearing from them again. I dont want to be screwed out of a months mowing. Does the legal action clause in my contract keep people from doing this? Anyways any comments are greatly appreciated.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Well I think a true deadbeat type customer is not gonna be scared by the fine print in a contract. Most collections situations arise from some sort of disagreement over the services. I have yet to run into anyone who basically said "Ha Ha, I'm not gonna pay cuz I just don't feel like it". But I am sure they are out there.

    I request a deposit equal to one mowing service, and I credit it to their account at the end of the season. Most customers don't question this, a month in advance, I don't know.
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    always try and get something in advance. i do several options. the best i've found are either 10 equal payments (first payment due a month befor you even step foot on the property), or a pre paid fert program, get it all, one shot, in advance. you will never get boned this way. if they try to beat you on lawn mowing, or another fee, you garnish it from thier fert program. very simple. and the 10 month plan, u have money in the bank , actually usually almost 2 months in advance. again, no way you can lose. extending credit will cost you money. it will agrevate you. it will cost you valuable time. and it will distract you from your work

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