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How are you collecting from commercial accounts?

Discussion in 'Bidding, Estimating and Pricing' started by Green Industry Pro, Aug 31, 2018.

  1. Green Industry Pro

    Green Industry Pro LawnSite Senior Member
    Male, from Tyler Texas
    Messages: 623

    How are you guys collecting from commercial accounts? I tried to find a thread on it but perhaps I didn't search the right phrase. I'm in the process of switching all of my residentials over to card on file. Havent done that yet for commercial. Curious what you guys do / opinions on switching them over to card on file. Normally I invoice it out and they make / send payment.
    hort101 likes this.
  2. Todd73

    Todd73 LawnSite Silver Member
    Male, from Florida
    Messages: 2,586

    Both my commercials have it set up where their bank sends me a check on the first of each month. Usually get it in my mailbox by the fourth.
    Tara Ann and hort101 like this.
  3. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 7,651

    Send invoice then check the mail.
  4. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,455

    I haven't done work for a local business who has paid by CC so just tell them (or signed agreement) your terms and wait for the cheque.
  5. wishfull

    wishfull LawnSite Senior Member
    Messages: 566

    We invoice at the end of the month usually by e-mail. Some pay by CC, most by direct deposit and some still pay via snail mail. Various customers have different payment preferences. Some are now allowing CC on file.
  6. Charles

    Charles Moderator, Friend, Angel
    Messages: 11,810

    This is another one of those all depends questions for me. Depend on where their office is located. Big or small company? Slow paying?. Bill some. Go visit in person others. Small company paid per cut. Big company one time per month. I hear this all the time on here and local companies. Huge commercials delay payments long as they can get away with it
  7. Mumblingboutmowers

    Mumblingboutmowers LawnSite Senior Member
    Messages: 935

    Have you lost customers by switching to "card on file"? I offer the option of paying by card, but I would never tell my customers that they need to pay with a card. It wouldn't feel very appropriate to me to ask a customer for their credit card number so I can store it. If someone I hire for something would want this, I would go elsewhere. I am not sure how any of this works, but is there liability by storing cards? Not that I would but just wondering. I also have doubts that any businesses would like to give out card information to any contractors.

    The other thing I don't like about cards is the 3% fee, I prefer to have all of my money and not give any away to the banks. I still invoice the old fashioned way and plan to continue to do so. On commercial accounts I submit a bill after so many services, depending on the service and money involved. I know they don't want billed too often, but I don't want a bunch of money floating in the wind either.
  8. AL's

    AL's LawnSite Bronze Member
    Messages: 1,057

    Card on file. If your already doing it with resi's no reason not to do it with coms
  9. MNLawns

    MNLawns LawnSite Bronze Member
    Male, from MN
    Messages: 1,438

    for resi, it is a requirement. If a client declines that, we will do monthly prepay, because we don't like getting screwed. Their card is just as safe with us as shopping at any store.
  10. Todd73

    Todd73 LawnSite Silver Member
    Male, from Florida
    Messages: 2,586

    The card on file is saved via the CC card company, like in my instance, Yardbook/Stripe. Customer is the one who enters all the info, all I can see if the last four digits. All the security liability rests with the CC people.

    I’ve never had anyone say they wouldn’t go with me because I do pre-pay CC auto draft. Some don’t save card to file, but they still pay on time and know if they don’t do auto draft and payment is late, they’re skipped with no refunds or pro-rating of invoices.
    hort101 likes this.

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