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Gettin Paid idea

Discussion in 'Lawn Mowing' started by Green-Pro, Nov 24, 2004.

  1. Green-Pro

    Green-Pro LawnSite Bronze Member
    Messages: 1,420

    I read through a thread on the board last night asking about the client/work generating capacity of checking in with Realtors for properties that are up for sale for one reason or another and need to be maintained. There seemed to be a lot of "good luck getting the Realtor to pay on time" comments.

    I got a line on some work this next season for some local Realtors that have foreclosed houses that need to be taken care of, usually bi-monthly, anyway the bank that holds the deed is the actual payee for this work. The guy that used to do it was just on the side thing for him and he told me same thing good luck getting money, they pay but are very slow (not surprised a bank would do this). I told him I would address this by sending a quikbooks generated invoice, same billing applies to all, with an explanation of when bills are due and late charges incurred when past due. I figure this should alleviate a fair portion of this problem.

    Then last night lying in bed million things running through my pea brain light bulb goes bzzzzt, bzzzzt, hmmmmmmmmmmmm. Starting an LLC or Sub-s corp is a fairly simple process so how about starting one as a debt collection agency as a compliment to existing business and a remedy to collect debts? I haven't researched it at all so don't know if its possible and the details that would be involved from a legal standpoint. I do know most folks do not like to have a bad credit report/rating or low FICO score and would guess a Bank would like it even less, that is assuming this possible and you could put a black mark next to their name.

    Anyway that my Lawnsite friends is my Thanksgiving Turkey so eat hearty and have a great Holiday.

    Gobble Gobble

  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    good idea, I just think asking for trouble though. Imagine the guy that you are trying to collect shows up at your door with a gun
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    you mean, kind of like a bounty hunter?
  4. Green-Pro

    Green-Pro LawnSite Bronze Member
    Messages: 1,420

    tiedeman good idea, I just think asking for trouble though. Imagine the guy that you are trying to collect shows up at your door with a gun

    Have a bigger gun then him perhaps? Ha Ha

    Rent a P.O. box in nearby town?

  5. lpwhandyman

    lpwhandyman LawnSite Member
    Messages: 197

    Why not offer a % discount if paid within certain time frame?
  6. Green-Pro

    Green-Pro LawnSite Bronze Member
    Messages: 1,420

    I don't know about you but in my case what bills I do have I can't think of a one that I get a discount on for paying early, that is unless you count not having to pay interest charge on say a home mortgage a discount. I would not count that myself, interest is merely the price you pay to borrow the principle, you must still pay the principle no matter what.

    BG, Bounty Hunter??? o.k. classy and gotta say I like your style.

    anyway as to my original post it was just a thought you know like asking "well what if" just something I try to use to generate an idear or four, no matter how wild, you never can tell when something really useful and possibly profitable will come up. This is a lighthearted but maybe practical way to look at getting payment not so much out of the res. properties but the ones where a place such as a bank writes the checks (why is it when you owe them money they are ready to call "Duane the Dog" bounty hunter on you, yet they do not seem to want to pay thier bills on time). Just figured you (LCO) could be your debt collection agencies only client why mess with a bunch of deadbeats not paying rent-a-center on time, and being legit might give you the leverage to place them (bank, Realtor,property mgmt. company, etc.) on a bad credit report

  7. tinman

    tinman LawnSite Bronze Member
    from ga
    Messages: 1,346

    Ridiculous! Ridiculous! Ridiculous! Ridiculous!
  8. mcclureandson

    mcclureandson LawnSite Member
    Messages: 242

    Why don't people realize time is money? You spend time worrying about getting paid, setting up a collection agency etc...there isn't enough ink to write a binding contract with a person you can't trust. The bottom line is this...if you have doubts about getting paid right from the start then it's going to be more trouble than it's worth! I doubt you'll find many companies that place a high value on their slow, slow payers. If I have to make more than a couple of phone calls to get my money, they're gone with no second chance. To date I've gotten every single cent owed...if I have to ask, plead or threaten for what's mine then I don't want them as a client.
  9. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    the only thing is, HOW CAN YOU TELL THE DIFFERENCE? what does a thief look like? i've had sweet, little old ladies, try to rip me off. i've had the most legitimate looking, sincere looking businessman try to rip me off. this is why i just assume they are all thieves right from the start, it's easier than trying to weed out the good ones
  10. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    all of our distrubuters offer a 2-5% discount if paid early.
    build in a late fee (next year add a % to all billed customers), then offer a % discount if paid byX date.
    you'd be suprised how much better your receivables are collected. especially from businesses. The better the busines person the more they watch out for even the smallest % savings.

    We quit working for realitors years ago ( builders too). becuase of thier paying problems. they will not pay you until well after they have thier money from the end customer.

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